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Practical insights from digital transformation projects
IT Vision | Oct 8, 2024, 21:05

“Every organisation requires a digital fabric that connects people, places, and processes” – Satya Nadella, CEO of Microsoft
Digitalisation / digital transformation are terms that have been frequently used over the last ten years. Whether we’ve adopted these catchy words or not, the global change in the business world is happening. However, the models of digitalisation are evolving – after the challenging times of Covid-19 and the start of the AI revolution, it’s time to re-evaluate how we’ve been transforming our businesses.
Technologies are constantly advancing – becoming more powerful, skilled, and intelligent. At the same time, they’re becoming more accessible, affordable and flexible. In many cases, it’s no longer necessary to invest in complex, expensive RPA (robotic process automation) solutions when AI or machine learning tools offer faster implementation and greater robustness. But how can you effectively leverage these tools to truly digitise your business?
Where Do You Want to Go Today?
A phrase recognisable to anyone interested in technology, originally popularised by Microsoft’s campaign, which highlighted that technology is only a tool – what truly matters are the goals and ambitions it helps you achieve. It’s still highly relevant today when considering digital transformation.
Before embarking on the journey of digitalisation, it’s essential to ask yourself what you want to achieve and where you want to end up. As Thorsten Dirks, CEO of Telefónica Deutschland AG, famously said, “Wenn Sie einen Scheißprozess digitalisieren, dann haben Sie einen scheiß digitalen Prozess”, and let me spare you the translation of that quote. The point is, there’s no value in digitising everything, nor should you aim for a massive system to manage all processes, which can quickly turn into a never-ending story.
Instead, focus on areas that you’ve selected for clear business reasons – where digitalisation will bring measurable benefits, not necessarily just financial ones. Let me illustrate this with a few examples from my own projects.
Case 1 – A quite obvious reason for digitalisation:
A small organisation, but one handling tens of thousands of documents and customers. After implementing digital processes, a five-person team could handle the entire operation. The result? 80% lower headcount; payback in less than 12 months.
Conclusion: Look for repetitive, time-consuming tasks; manual, boring operations – an easy way to save money.
Case 2 – Quality and market requirements
An international manufacturing company sought market expansion opportunities but faced challenges with quality. It wasn’t so much a quality issue as a lack of proof that they were maintaining the highest standards. They needed to digitalise the entire production and warehousing process to implement full traceability at each step. Such projects are often more challenging for the personnel (in terms of change adoption) than for the solution designers.
Conclusion: If you want to maintain the highest market standards, you need to equip yourself with top-tier tools, including digital ones.
Case 3 – Business insight and efficiency
Managers of a manufacturing company wanted more detailed data on production costs to answer a basic, recurring question: How far can we lower the offer’s prices while maintaining expected profitability? The legacy data collection process and basic software couldn’t provide detailed information about production order costs, especially for high-cost machinery. We had to implement a complex ERP system with proper data collection and manufacturing cost calculation procedures. Just a couple of years later, we found that the market had become extremely competitive, leading to cost calculations being detailed down to four decimal places. This level of precision would have been impossible without a reliable controlling model and supporting digitalised processes.
Conclusion: To remain competitive, deep business insight is essential.
How to Approach Digitalisation?
These are just a few examples – companies around the world are undergoing digital transformation. It’s clear that every company is different, so how should you approach the digital transformation of your own business to keep pace with technological advancements? Based on my experience, here are a few practical tips:
- Digitising your business doesn’t have to be difficult: Many of the technologies available today are surprisingly simple to.
- You don’t have to commit to one tool: You can implement new solutions independently across different areas of your business, selecting the right tools for each one (of course, having a clear understanding of your goals is crucial).
- Sometimes, simple solutions are enough: For example, data registration or document-related processes can be automated easily, offering quick and cost-effective.
- AI helps accelerate digitalisation: It’s highly flexible, requiring less programming and more focus on observing processes and optimising.
- However, you don’t always need AI: In some cases, traditional machine- learning combined with classic business intelligence (or BI) might be a better fit for your.
- Focus on quality at every stage: From input data and processes to analysis and control, maintaining high standards is.
- Avoid large-scale projects: Work step by Achieve success in one area, and then move forward.
- Don’t fear mistakes, adjustments, or fine-tuning: After all, manual processes are prone to errors.
Choose your own path to the digital world
Digital transformation is more than just adopting new technologies – it’s about aligning them with your business goals, optimising processes, and driving real value. From simplifying repetitive tasks to enhancing your competitive edge with deep business insights, the journey is unique for every organisation.
Remember, the most important thing is not just to digitise, but to ensure that every step serves a clear purpose and brings you closer to where you truly want to go. Don’t digitise just because it’s trendy – make sure it truly serves your business needs.