Digitalization, in the context of business, goes beyond just optimizing the efficiency of business processes. It is also about achieving operational excellence and realizing optimal customer experiences. In optimized and digitalized business processes, the existing, often isolated and older business systems or applications are integrated. As a workflow. End-to-end. Straight through the organization, across the silos of departments.
Despite the convincing contribution of digitalization to productivity and competitiveness, every company faces a paradoxical challenge: efficiently executing today's activities to be successful today (execution) and adapting those activities to be successful in tomorrow's situation (adaptation).
A good balance between execution and adaptation is crucial. This involves optimizing the processes for efficiency and at the same time organizing them in a way that adjustments to new challenges can be realized easily and quickly.
In Kien’s daily practice we often get questions about digitalization. We have summarized these for you below:
1. Is digitalization necessary?
This question is easy to answer: it is absolutely necessary. An organization has a place in the value chain. If you want to keep it, you will have to develop along with the dynamics around you. We can safely say that this is true in all industries, because digital technology has an enormous impact everywhere.
2. Is digitalization a risk or an opportunity?
Of course, digitalization offers opportunities. While new competitors enter the market, companies can use digitalization to produce more efficiently, save costs, deliver faster, and offer better customer interaction. So yes, take advantage of the opportunities offered by digitalization and prevent your competitors from taking you out of the game.
3. Can we expect resistance against change and innovation?
Resistance is always to be expected with change. Middle management in particular often seems determined to stick to the familiar way in which work and things are done. It is important to inform employees properly and to involve them in the developments.
4. How can we use digitalization for further development?
It is crucial to look beyond productivity improvement and use digitalization to take advantage of valuable opportunities. Provide customers with better products or better services. Ask yourself what your customers expect. In what way does their behaviour change? And how can you offer them faster and better added value?
Digitalization offers many opportunities to cooperate faster and to better serve your customers. To offer real solutions and customization instead of limiting your organization to offering standard products.
Without wanting to generalize, we can say that in the majority of companies development with digitalization should primarily focus on the optimal design of end-to-end processes. A horizontally designed and automated workflow, in which existing business systems and applications, such as CRM, ERP, databases etc. (often IT legacy) are integrated, across the silos of departments and in which people work together and handle the processes.
After this companies can focus on using data smarter, for example better customer interaction and faster decision making.
5. What are important considerations for digitalizing?
Businesses are very diverse. Different companies have different priorities. So a simple answer is not easy to give. In general, it should be taken into account that as our economy grows, more and more digital technologies are being used on several themes. The following six themes stand out here:
Changing customer expectations
Need for operational agility
Solving IT-legacy bottlenecks
Positive employee involvement
Answer to competition
Saving through technology
If you want to apply digitalization to your company in a practical way, please contact Kien!