Regardless of the type of business you have, digital transformation is the new reality that is taking place whether you realize it or not.
The need to digitalize your core business processes is imperative for you to remain competitive.
It isn’t just customers you are competing for. You are now also competing for the people that make your business succeed.
Digital transformation is not a one and done scenario, it’s journey. It’s a journey from your current ways of doing business to a new digital state that is based on intelligent information management practices that integrate people, processes, information and technology to support achieving superior operational efficiency.
Digital transformation also enables you to be a more agile business while enhancing your internal and external customer experience. Have you ever called a business that asked you to type in your account number then when a live person answered the phone had you repeat what you just entered for them? How did you feel? How do you think the employee feels in this situation? This is an example of the internal and external customer experience that you can transform.
What is digital transformation and how do I start?
True digital transformation is more than just digitizing back end processes. It is more than moving your existing processes from paper to digital. Moving your processes from paper to digital has long been shown to increase efficiency but digital transformation is more than this. Digital transformation goes beyond digitizing the steps in a workflow. It is all about redesigning the business as a digital business, not just improving what you have today.
Many organizations have not done the very basic work of process automation, putting them at a severe disadvantage in their efforts to embrace digital transformation. On a scale of 1 to 10, how would you rank your overall effectiveness in automating, monitoring and controlling your core business processes?
If you have not already done so, the first step in your digital transformation should be focusing on improving your back-office operations. Focus on internal reviews and approvals, HR processes, sales processes and contracts, customer correspondence and the finance functions.
If you have not already done so, the first step in your digital transformation should be focusing on improving your back-office operations.
As you focus on improving your back-end operations, focus on value creation as well as cost reduction. Reducing human intervention, reducing the number of steps in a process and eliminating duplication reduces cost but what can you change to increase value at the same time?
What is the value of more current knowledge? What is the value of greater visibility? What is the value of giving your customer access to a portal where they can enter their own orders, re-print an invoice or view the status of an order or inventory item? There’s a cost reduction on your side but how valuable is it to your customers when they can do these things at their convenience? What if your competitor offers this but you don’t? How does that affect your relationship?