+ 5-step guide
Higher productivity, fewer errors and all at a lower cost – this is a vision shared by many companies. However, analog or semi-digital processes usually set a clear limit to increasing efficiency. However, if you consistently digitize processes, you open up new development opportunities for your company.
The days when process digitization was just an interesting trend are long gone. In the competitive arena, whether local or global, digital processes are simply a necessity for maintaining competitiveness and increasing profitability. But what specific opportunities (and challenges) do they offer? And where should you even start? This article provides you with a starting point.
A business process consists of several work steps that are interdependent. Each step is designed to achieve specific goals or results. Process digitization means replacing analog or manual business processes with digital ones. In this context, software applications or IT systems take over the electronic capture, processing and storage of information and data.
The department or area of your organization in which you can profitably digitize processes depends on your current level of digital maturity and the individual requirements of your company. Typical examples of process digitization include:
In order to digitize business processes, several phases are usually necessary, whereby a careful, step-by-step approach pays off. In our experience, it makes the most sense to first clearly define a business case and then consistently digitize the underlying process. You can then expand the digitization project to include other processes or departments.
Of course, the specific process will vary depending on the company or your operational requirements. These five steps define the approximate project framework to help you get an initial idea:
It’s best to focus on a manageable area of activity at the beginning. Identify a clear use case or a process that is currently still analog or manual and that you expect to add value to if you digitize it.
However, a structured start also requires an objective view of the initial situation. It may make sense to involve a development partner as early as this step to help you identify a promising area of action.
Once you have identified the business case, you should set measurable goals, such as time or cost savings or a reduction in the error rate, that make the expected added value measurable. There are reliable models for calculating the return on investment (ROI), i.e. whether and from when a digitization pays off for a use case.
With the goal in mind, you can plan the actual process digitization. This includes defining responsibilities, ensuring the necessary skills (via outsourcing if not available in-house) and involving all departments and employees involved. Open communication and regular feedback are among the things that ensure a high level of acceptance and motivation.
Before you start digitizing the selected processes, you should first thoroughly analyze the current processes and check for weak points. The problem is that an inherently inefficient process does not automatically become a high-end solution when it is digitally mapped. So optimize the process behind your use case first before you start digitizing.
Once the requirements are clear after planning, the next step is to select the necessary technologies. These must not only meet the defined criteria, but also be able to integrate your existing systems.
At this point, the first question that arises is whether a standard solution can meet the requirements or whether custom software is the more sensible choice. To do this, you should ask yourself the following questions:
If, after this honest assessment, you realize that a standard solution will not get you ahead or that you will only get ahead with expensive customizations, then opting for a customized software application or custom software development can be a sensible alternative. This way, your company gets all the features it needs without unnecessary costs for redundant features.
Before the final conversion, the digital processes are tested extensively. This allows you to identify possible errors or necessary adjustments at an early stage. After the successfully completed test phase, the newly digitized process goes live.
All’s well that ends well? In principle, yes. Now your company has taken the first decisive step in the digitization process. With the experience gained from the first project, you are well prepared to tackle process digitization in other areas of the company.
In a nutshell: if you want to remain competitive in the future, digitizing processes is an absolute must. Above all, process digitization means efficiency – and at different levels:
When you digitize processes, there are always some challenges to be faced alongside the numerous benefits. However, with a good digitization strategy, these can be easily overcome:
Rather than consistently digitizing, would you rather stick with the familiar process structures? Not an option. Companies that do not address process digitization face serious (competitive) disadvantages such as high operating costs due to inefficient workflows or decision-making that is too slow.
Digitizing processes, on the other hand, is a valuable opportunity to remain competitive in the long term by using your resources more efficiently. Examples such as more efficient order processing with ERP systems for medium-sized companies show that it pays off.
Do you want to take advantage of this opportunity? Then get in touch and we will find out together in a Digital Discovery Workshop where the greatest potential lies and how you can best tackle process digitization.