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What are the steps involved in the digital transformation plan?

First step: perception

The first and the most important step in digital transformation is the feeling of need among the senior managers of the organization. Lack of understanding will lead to non-cooperation and non-cooperation will be effective in the failure of the plan.

Second step: strategy planning and formulation

At this stage, the needs of the organization at all levels will be identified in general and without going into details. Based on the identification, the priorities of the organization will be extracted and the overall strategy of the transformation plan will be formed.

Third step: planning and recognizing and analyzing the requirements of micro-strategy formulation

At this stage, based on the defined priorities in the previous step, an accurate understanding of the requirements of each system and each process begins and the path of system design and then development to the establishment and improvement of the system is planned. The output of this stage will be used for the production of systems.

Fourth step: implementation

This step can be started simultaneously with the second step to implement the infrastructure, and based on the priority set in the previous step, the systems will be implemented based on the latest technology in the world and will be connected to each other.

Fifth step: Creating values

after implementation of each system, first, the desired system will be operated on a trial basis, which after resolving the problems in the pilot phase, will be fully operational at the level of the entire organization.

Sixth step: monitoring system performance during implementation and plan for subsequent improvements

At this stage, all exploited systems are thoroughly reviewed and new improvements and ideas are identified in a written form and re-entered in the development stage.

Why do growth managers need to understand the demand for change and get involved?

The first requirement to begin change is to understand the need for change in the organization�s senior managers.
Due to the complexity of organizational change and the initial defensive positions among employees and middle managers in establishing organizational change, the support of senior managers is very important. The organization�s senior managers should not only support these digital transformations but also should take the role of leadership and guidance of this change in the organization and play a role as an active member in the field of organizational transformation. The following are some of the most important roles of senior managers in this development:

  • Provide the basic foundations needed for organizational change
  • Patience and support in getting the job done
  • Fully prepared to deal with unexpected issues and try to find a solution
  • Leading middle managers and employees and preparing the organization to accept change
  • Dealing with barriers and obstacles to change and paving the pattern of routes

Why digital transformation is essential in the organization?

In the new millennium, businesses� vision for digital transformation has shifted from a one-time event to an ongoing strategy. These changes are happening so fast that there is no time to rest and the companies, like sharks, must be constantly moving to survive in the water and the stakeholders must be fully aware of the adoption of new technologies to be able to move fast in the global market. And it�s obvious that the ability of businesses to compete in the global market is directly affected by the speed with which they adopt new technologies.
We have to say that digital transformation for the companies, especially the traditional ones, is an essential requirement that will be imposed on your business by the market, customers, and lifestyle changes. No matter how big your organization is or how much market share or power it has, the power and market share will gradually shrink as customer behavior and tastes change. In return, implementing digital transformation can ensure the survival of your organization or better yet, stabilize market share, or in a much better way, can increase your market share and profit margin. So digital transformation is a matter of survival.

What goals will you achieve after implementing the digital transformation into your company?

  1. Achieving a fully digital organization: This way, all traditional processes will be transformed and modern digital processes will be replaced.
  2. Access to up-to-date and real statical data: All the statical data will be real and up-to-date and you can rely on them to make strategic decisions in the organization.
  3. Simplification of the activities and reduction of costs: With this method, the workflows will improve and digital systems come to help the users and in addition to simplifying processes, costs are also reduced.
  4. Changing the organizational processes: in the process of digitizing organizations, many traditional organizational processes will evolve and be optimized and efficient in the new direction
  5. Increase system agility and efficiency: By simplifying work processes, in addition to agility in providing services, system productivity will also increase and will be effective in the growth of the collection
  6. Creating integration and communication between systems: all the data in all systems will be in connection and integrated systems based on modern technology will be achieved.
  7. Paving the way for further business development: Recording the advances that have been made, the organization can complete its development process by relying on information at a higher speed and managers can make more accurate decisions
  8. Evolving the attitudes of managers and employees: By evolving in systems and organizational methods, the way of thinking of managers and employees will also change and you will see organizational change.
  9. Increasing customer and employee satisfaction and market share: after the establishment of new systems and methods, we gradually see an increase in customer and employee satisfaction and an increase in market share, and the development path of the organization will be smoother.

What’s the difference between digitalisation, digitisation and digital transformation?

Digitalisation, digitisation and digital transformation are three words that sound very similar but have totally different meanings. We?ll take a look at the differences here.

What is digitisation?

Digitisation is the process of converting information from a physical format to a digital one.?It means converting something non-digital into a digital representation to be used by computer systems and automate processes or workflows. Digitisation enables to creation of business value, which needs data.?It helps to lay the foundation for business use cases that leverage the data.

Examples:

  • Scanning a paper document and saving it on a computer’s hard drive as a digital document, like PDF.
  • Going from notes on paper to typing them up in an Excel spreadsheet.
  • Converting from analog VHS cassettes to CD, DVD, or Blu-Ray discs containing digital data.

What is digitalisation?

digitalisation refers to enabling or improving processes by leveraging digital technologies and digitized data. One definition of the word is the utilisation of digital technology in order to streamline and change processes. Customer service is one example. Many businesses have moved from a telephone-based service to a digital solution in the form of a chat facility directly accessible online. Some even use an AI-based chat solution which does not require personnel. Although the method of providing customer service is the same as ever, the process of creating a case has become more seamless since the introduction of digital technology.

Digitalisation of a company needn?t entail digitalisation of the entire operation and is usually a means of making certain processes faster and more straightforward.

Digitalisation increases productivity and efficiency while reducing costs.? Digitalisation improves an existing business process or processes but doesn?t change or transform them.? That is to say, it takes a process from a human-driven event or series of events to software-driven.

Examples:

  • Uploading a PDF document from a computer’s hard drive to the cloud and sharing it with many people to analyze the data;
  • Converting an Excel spreadsheet to a Google Sheet stored in the cloud. The platform provides a structured environment where the documents can be shared among several users. Still, a Google Sheet itself requires human interaction to keep it up to date.
  • Uploading digital movies from CD, DVD or Blu-Ray discs to online services. People can download or rent them.

What is a digital transformation?

Digital Transformation takes place when a company carries out digitalisation of its entire operation, and is thereby a more extensive and wide-ranging process. Digital transformation may involve the gradual digitalisation of internal processes until the company has fully completed the digitalisation process. There is no exact template outlining how digital transformation should be carried out, and how long it takes, but a strategic, goal-orientated approach is a common feature of every process.

Examples:

  • Reading the data from an online PDF or moving the data from a Google Sheet into an app or system that will analyze the data. The goal is to provide us with insights to offer new products or improve customer service. This process doesn’t need a lot of human interaction because is automated. As a result, it enhances efficiency, reduces costs, and may lead to increased sales.
  • Streaming movies online. Collecting data from clients to analyze it, preparing individual recommendations, offers, and advertisements.

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Digital transformation

digital transformation is all about becoming a digital enterprise. an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers, and how it operates

Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. In general, it refers to the use of digital technology to materially evolve or create new business processes

What are Benefits of Digital Transformation

Increases productivity while reducing labor costs

Using technology to work more efficiently is one of the most impactful ways to transform your business.

More Data-based Insights

When you go digital, you can track metrics and analyze the data you capture during your digital process.

Using data-driven insights can help understand customers better and rethink business strategies, assisting with better decision-making.

Improves the customer experience

customers want a great experience through multiple touchpoints , mobile apps, social media, email, live chat, etc. Digital transformations are the driving force behind improved customer experiences.

Makes You More Competitive in Your Industry

Your competitors are looking into digital transformation regardless of whether or not you are. Choosing not to embrace digital transformation is essentially deciding that you don’t mind being left behind.

Eliminating Time-Consuming Manual Processes via Business Process Automation

By implementing digital technology, you can use software to perform the tasks that were previously being performed manually by staff. Business Process Automation is often seen as the stepping stone to a more holistic digital transformation, but it can also be one outcome.

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What is a Digital Transformation Strategy?

The question is how to put the critical elements of the Digital Transformation puzzle together. With puzzle elements such as changing the culture of IT, increasing awareness among stakeholders across the business, and bridging transformation to the company�s vision.

The digital transformation strategy consists of 6 different steps:

1. Ideate and Create a Compelling Digital Strategy

The first step is ideating, getting everyone involved, and finding out what Digital Transformation means for your company and what it can do for you.

At the heart of the Digital Transformation journey is to create value. When employees understand the meaning that Digital Transformation can bring in, they can quickly buy in and drive the change you need.

2. Aligning Digital Transformation with Business Goals

Once you have your digital strategy story in place, it is crucial to align it for a successful transformation. The approach is usually a top-down one.

As CEOs, you need to communicate the move and also outline the right outcomes. Digital Transformation cannot be driven out of IT only�you must completely align it with an organization�s vision, mission, goals, and values.

3. Document the Risks

There could be risks involved with Digital Transformation, and many companies are aware of this. Whenever you roll out a new internal application, there could be risks involved.

It is prudent that you discuss, analyze, and document the risks to track threats over a set period.

4. Run Pilot Tests

Once you�ve ideated your story, analyzed challenges and the technology, documented the risks, it�s time to run a pilot test with the technology.

Running proof-of-concept and pilot tests helps you identify impacts on your business and culture as you move forward with a solid plan. The tests will ensure that your stakeholders are ready for the Digital Transformation journey and your organization and employees know how to implement the project effectively.

5. Keep Analyzing the Impact

It is prudent that as a part of your digital transformation strategy, you keep analyzing the rollout. An excellent example is Artificial Intelligence (AI).

If an organization devised to use AI as a part of a sales process, they might see some gains, but with further analysis, they may realize the need to automate even more of the sales process.

Similarly, any Digital Transformation strategy will be most useful when you analyze further. The initiative will help you run your business smoothly.

6. Prepare for Culture Change

The most critical element is the cultural aspects of transformation. The biggest mistake will be to overlook the cultural change in a digital transformation journey. Give careful consideration to cultural facets of transformation, because at heart, it is a people challenge.

Preparing for culture change is a vital element in the Digital Transformation strategy. 

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What are the benefits of digital transformation

digital transformation is all about becoming a digital enterprise�an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers, and how it operates

Digital transformation can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models.� In general, it refers to the use of digital technology to materially evolve or create new business processes

What are Benefits of Digital Transformation

Increases productivity while reducing labor costs

Using technology to work more efficiently is one of the most impactful ways to transform your business.

More Data-based Insights

When you go digital, you can track metrics and analyze the data you capture during your digital process.

Using data-driven insights can help understand customers better and rethink business strategies, assisting with better decision-making.

Improves the customer experience

customers want a great experience through multiple touchpoints � mobile apps, social media, email, live chat, etc. Digital transformations are the driving force behind improved customer experiences.

Makes You More Competitive in Your Industry

Your competitors are looking into digital transformation regardless of whether or not you are. Choosing not to embrace digital transformation is essentially deciding that you don�t mind being left behind.

Eliminating Time-Consuming Manual Processes via Business Process Automation

By implementing digital technology, you can use software to perform the tasks that were previously being performed manually by staff. Business Process Automation is often seen as the stepping stone to a more holistic digital transformation, but it can also be one outcome.

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What is digital transformation?

A digital transformation will look different for every company and for each industry. However, broadly speaking, it describes the integration of digital technology into each area of the business. It results in core changes to how a business operates and delivers its products or services to customers by taking advantage of technological advancements. 

Within a company itself, it requires a cultural shift in how processes are completed. Employees have to become accustomed to experimenting regularly with their processes and even sometimes fail in their efforts to innovate. Businesses might find that they must sometimes step away from the old processes that they knew worked well, in favor of experimenting with innovative solutions that have not had the same extensive testing.

It is only by adopting these best practices and fully integrating the employees into the mindset of digital innovation that brands can remain at the forefront of their industries and continue to serve customers with the care that they have come to expect.

What are the 4 main types of digital transformation?

Business process

The business process part of the transformation refers to how your company functions internally. It looks at how your people respond to the available technology and put it to use in their own work. It includes processes such as incorporating a greater amount of analytics collection and analysis into business decisions to help the company maximize its marketing investments or plan its research and development. It can also mean incorporating automation into internal processes.

Digital transformation in this area looks at ways to help the organization improve its functions. It might do this by decreasing the costs associated with certain processes, decreasing the time-to-market, or it might increase the quality of the product offered, for example. All of these ways would help to increase the value of the brand’s processes through digital technology.

Business model

Digital transformation of the business model requires a careful examination of how businesses within the sector are set up at their core. Transformation here has the potential to cause serious disruption in the industry and power success when done well. An excellent real-life example would be Netflix, which transitioned its movie-watching services away from mail-in DVDs to a streaming service that has had reverberations felt by all the major movie and television producers. 

These types of transformations often work hand-in-hand with the strategic parts of the business, using their eye for innovation and forward-thinking to look at the business potential beyond the established means within the industry.

Domain

Domain transformation refers to the growing capacity of brands undergoing a transformation to think about markets and potential beyond their traditional boundaries. Consider how Amazon, the online retailer, managed to launch Amazon Web Services, which now functions as one of the largest cloud computing and infrastructure services. In other words, they were able to step far beyond the former sector of retail and embrace an entirely new technological potential. Technology offers brands significantly more capabilities to step into new sectors. Many of these opportunities come from emerging technology such as artificial intelligence and machine learning. 

Cultural

The cultural component of the digital transformation requires buy-in from the people on the ground, doing the daily work involved in completing the digital transformation and then engaging with the technology. It can be a challenge for many organizations to make this transformation, as they have to educate their employees and help everyone see the potential for this technology to build the business and better engage the world around them.

Succeeding in building a technologically-focused organization, however, will empower the company to continue to grow. Technology, including its regular updates and innovation, requires a workforce that can easily adapt to changes and people who embrace a culture of continuous education. These traits within the organization will help the brand create positive customer experiences, as the company will be able to adapt its practices and incorporate technology to deliver a personalized experience the customer wants.

Business Process Automation Methodology

The process to accommodate expansion in your business.

The generic method helps you with continuity. When you already have some semblance of automation in place, there might be no need to recreate the entire process. What is required in this case is to pick out areas you can extend and automate.

The generic method is a process analysis tool that is not specific to BPA. It usually involves a step-by-step process that assesses and improves upon what you have as your business process.

Here�s what needs to be done to use this method:

  • How- To evaluate the current practice within your organization
  • Why- For assessing how you can make your existing process better by identifying the gaps
  • Fix it- To work on improvements in errors or gaps
  • Track it- A follow-up process for monitoring the new process adopted
  • More- An open platform that gives room for additional input to ensure continuity

Combining BPA and BPM

A process that cannot be measured is bound to fail, and this is why it is a great approach to apply Lean and Six Sigma in your BPA process.

Assessing your process involves the use of five key tools, which are very similar to what is obtainable in the generic method but with a slight variation.

The five tools involve Defining, Measuring, Analyzing, Improving, and Controlling (DMAIC) all the processes used for your BPA.

Applying Lean and Six Sigma in your BPA process gives you room to improve, expand, and grow. It also helps you streamline your processes and cut downtime which would otherwise be wasted on repetitive tasks.

This will allow you and your team to focus on other productive issues and also ensure that your established processes have a proper flow that can be perfected over time.

The method you can use for your BPA, therefore, depends on where you are in your business. Remember, however, to always document the process irrespective of the method you use. This will help you with continuity and make transitions to bigger roles easier.

How to Know If Your Business Needs Automation

It uses technology to not only �automate� business processes, but also optimize the workflows for improved efficiency.

How to Know If Your Business Needs Automation?

Few key elements that can help you find out if your business needs automation. You can think of developing a custom BPA software if your business has processes that are:

  • Repetitive
  • Involve a series of predictable steps
  • Consistent across the organization
  • Needs to be error-free 

Business Process Automation facilitates businesses to

  • Execute recurring tasks
  • Cut costs
  • Make processes error-proof and transparent,
  • Increase productivity and
  • Streamline operations

Is Business Process Automation Suitable for Small and Medium Businesses Too?

Well, it�s a common misconception that Business Process Automation is useful only in cases of complex business tasks. Every business can benefit from Business Process Automation. Business Process Automation is about making every work process better � even simple tasks like mass emailing or sending notifications, for that matter.

Depending on the work process to be optimized, Business Process Automation can either be wholly stand-alone or be part of a larger initiative. 

Let�s take a look at different approaches for Business Process Automation that you can apply:

  • Business Process Improvement (BPI) � It�s about automating to improve the lackluster processes.  
  • Business Process Re-engineering (BPR) � BPR works just like BPI, with the critical difference being that it focuses on tearing down and rebuilding business processes from scratch. At times re-designing happens because of new technologies.
  • Business Process Management (BPM) � BPM is about continuous improvement � unlike BPI or BPR, which are more of one-time initiatives. BPM is something a company does systematically. Accordingly, BPA will streamline and automate outdated processes.

Based on the approach you choose to apply, you can use any of the following types of automation:

  • Basic automation � You can create a central server to store all the essential business info. With all the critical data in one place, you�ll be able to improve the speed of work and its system.
  • Process automation � it can help your business achieve consistency and build effective task management. This type of BPA is achieved by using custom software or purchasing off-the-shelf business tools.
  • Artificial intelligence automation � You can use a bot (a piece of software designed for a specific function), in this case, that is trained using machine learning to perform high-volume, repeatable tasks. They are used for data entry, form checking, or rekeying the interface between a system and the user into something streamlined and easy to use.

Let us now understand why you must invest in a custom Business Process Automation platform. 

What is business process automation?

What Is Business Process Automation (BPA)?
Business Process Automation is a tech-based process of automating activities run within your organization, with the aim of simplifying, reducing running costs, increasing efficiency, and improving service delivery, just to name a few benefits.

It involves a thorough or comprehensive study of how businesses operate, identifies areas that can be improved, and creates viable solutions that will transform the business in question.

The Elements of BPA

  1. Knowing The User � The kind of BPA you choose to adopt must capture the needs of the end-users. All the stakeholders must be comfortable and satisfied with the automated process. There is no point in adopting a method that will totally change the way things are done just because you want to automate. Rather, it should enhance and improve on the set methods in use.
  2. Planning � Creating a visual map or blueprint before automating is key. Document and write down the flow of the process in question so that at a glance, you will be able to pinpoint areas where automation would be more beneficial.
  3. Keep It Simple � The specific techniques, methods, and tools used to enhance the processes involved in automation should be kept to a minimum. Yes, it can be exciting when you start but don�t get carried away. Automate only processes that really take well to it.
  4. Documentation � In the beginning, you will have everything running smoothly and have no issues. But sooner or later, when you run into problems, you will need to troubleshoot, and if you have been documenting with notes and logs, then it becomes easier to address problems in detail as needed.
  5. Testing � Before you actually start using or running your automation, you should have it tested in real-time. This will give you the opportunity to detect any bugs or missed steps and put them in order before you begin fully.
  6. Training � Getting the users trained is a must. One good way to do this is to use the �Train the trainer� approach. What is required here is to train the team leader and allow them to pass on what they learn to other team members. This leaves everyone involved well-grounded in its usage and they can also refer to team leaders for guidance when challenges arise.
    These six elements are key to the performance of your BPA, but there�s more. There are certain principles that should also be adopted which we�ll look at in the next section.

7 Notable Principles of BPA

Developing a good Business Process automation is based on certain principles, which will ensure that you have a well-laid out blueprint suitable for your business.

1: Training Of Developers

If you plan to outsource the development of your automation software to developers, you need to ensure that the developers understand the different tasks that need to be automated within your organization. This will help them develop the right codes and scripts to capture the processes.

2: Develop A List Of Tasks

Ensure that you make a list of all the tasks that need to be automated. This will help you capture sensitive steps required to develop proper automated processes. Doing this will not only cut down on errors associated with humans but also enhance your progress.

3: Keep It Simple

If something sounds difficult, then it probably is. Do not over-complicate your processes in a bid to automate them. Break down the tasks into manageable bits to make it easier to automate. Analyze your existing process and redesign complex parts to accommodate automation.

4: Be Consistent

It is important to maintain consistency. You cannot start automation and then stop halfway. You need to use the automation process setup regularly and maintain the same procedure.

5: Proper Integration

BPA needs to blend in nicely with the entire system within your organization, especially when it comes to integration via APIs. You can integrate your automation at different levels of the process, as long as you maintain the desired output.

6: Training

As you automate you should carry your staff or team members along by providing the necessary training required to help them transition into the new process. This can be arranged prior to the automation process to streamline moving to a new way of getting things done.

7: Keep Evolving

Setting up your BPA process is not a one-time thing. As your business grows and evolves, you�ll need to revisit existing processes to improve efficiency and maintain a healthy competitive edge. This means that your BPA process should be able to accommodate these new changes in your business.
Following through with these principles will ensure that you stay on track.