Digital transformation is often equated with digitization – the conversion of analog information and formats into a digital form. But digital transformation presents companies with further challenges than “pure” digitization.
While digitization simply means digitizing analog content, digital transformation sheds light on other changes that digitization brings. If companies go through this process of change, it often results in competitive advantages or new, innovative business areas. This can also lead to changes in employees’ areas of activity and even to a transformation of the entire company.
What is digitization?
Content such as text, invoices or images are digitized to be stored, processed and shared on PCs. Furthermore, contents of forms or other documents can also be transferred to the PC via image recognition programs.
Digitization is also often referred to as automation. This means that not only is content being digitized, but technologies such as robots or AI are being used to bring processes or ways of working into digital formats.
Automation leads to increased efficiency and reduces the susceptibility to errors.
What is digital transformation?
Digital transformation does not end when processes or content are digitized or automated with new technology.
Digital solutions are sought for new or old challenges or customer expectations. In other words, it must first be examined whether a process in the company really still makes sense in its current, analog form or whether it can be changed and perhaps simplified through digitization.
Digital transformation is therefore the solving of problems with new technical methods for more transparency, greater efficiency, better use of resources and ultimately lower costs.
Digitization vs. digital transformation – the key facts
Digitize content
digital transformation as a change process
new technologies and networking
Digitize corporate structures
The importance of digital transformation in business
Companies are increasingly embracing the shift toward more digitization to also meet customer expectations and shape customer interactions in a modern way. This means that not only content, but also workflows and corporate structures are digitized.
As a result, it becomes apparent that previous business models may no longer work or no longer make sense in their form, and change processes are required.
Digital transformation begins with the analysis and optimization of business processes, requires the partial or even complete adaptation of business models, and leads to a change in corporate culture. Digital transformation therefore affects the entire company, the entire customer journey, and requires a fundamental rethinking of customer experience and user behavior.
Digital transformation in implementation
Inventory of internal processes
For a successful digital transformation, ideally all internal company processes are put to the test. In the process, customer expectations of the company are examined, customer access to the company is investigated, and internal company work steps for dealing with inquiries and customer interactions up to the conclusion of customer processes are scrutinized.
Process analysis & process documentation
A precise process analysis and thus process documentation provides information about which processes or work steps are relevant, suitable and useful to be digitized and automated. It does not always make sense to digitize 100% of all steps in a process if, for example, sub-processes are too complex or human work steps are necessary.
Digitization of processes
Standardized, always the same processes such as communication and information processing, where no human intervention is required, should be digitized. This frees up valuable human resources for higher-value tasks within the company. Gained human resources are especially important in times of shortage of skilled workers.
By digitizing and automating information capture and processing, business processes can be significantly shortened, accelerated and handled more cost-effectively.
Elimination of system breaks and media discontinuities
Essential when introducing digital strategies is the elimination of system breaks and media discontinuities. So-called unstructured data that used to be delivered by e-mail, forms, typed into a PC by employees, or in paper form, for example, is converted into a digital and thus structured form by solutions such as online forms and can be processed immediately within the company.
Systems and processes are connectedvia APIs (Application Programming Interface) to be able to communicate with each other and perform automated work steps. In the event that systems cannot be adequately addressed via APIs, alternative solutions such as RPAs (Robotic Process Automation) are used – “robots” for short — that simulate human screen behavior.
Added value of digital transformation
Digitize content
Compensation for shortage of skilled workers
Increase in customer self-service
Digitization of repetitive work steps
Time efficient processes
High error prevention
High data quality/processing through structured data
Reduction of lead times
Conclusion: At the beginning of a digital transformation, the first step is always to analyze your own business processes. This begins with the question of what the customer wants and ends with after-sales support. And because it is often difficult to look beyond one’s own nose, the ninjas accompany with their view from the outside.
If you need support in the digital transformation of your business processes, we will be happy to advise you and help you optimize your processes in the best possible way.
Until the next update – your Growth Ninjas,
Adrienne, David, Hermann, Johannes, Katharina B., Stefan K. & Stefan G.
