Digitalization is the digital transformation of the operations of a VSE, SME. It translates into results through the adoption of new software and innovations.
Upstream, it requires strategic reflection on the IS (Information System), a perfect knowledge of the company’s business processes and the acculturation of teams via a change management system.
The aim of this article is to bring you a fresh perspective on corporate digitalization. Whatever your maturity on the subject, we’ll give you concrete tools and methods. These will enable you, with your own resources, to make a success of your transformation project and take advantage of technologies in a straightforward way.
What is corporate digitalization?
Definition of corporate digitalization
Enterprise digitalization, or digital transformation, is a strategic project that enables an organization to take advantage of new technologies.
This digitization is carried out using a structured method based on employees’ business needs. This method then leads to the construction of an IS roadmap, including various projects and transformation phases.
In concrete terms, this digitization involves :
Theintegration of this new variable into a company’s business model, because a digital transformation is an investment that must be made profitable thanks to the advances it brings (quality, performance, comfort, optimization, new services, margins, sales…).
Adoption of new software and digital solutions (in most cases, it’s better to use tools already used by thousands of companies than to choose innovative products)
The possible reorganization of resources software ergonomics, digital solution functionalities and process automation.
Find out more in our article on process automation
What business lines and activities are affected by the digitalization of companies?
All of a company’s activities , from pre-sales to production planning, accounting, HR and delivery, can be digitalized.
The digitization of companies is also linked to what lies outside the organization: the customer and prospect experience, supplier management and relations with service providers.
Of course, some activities don’t have to be transformed immediately, depending on the context. To identify the right starting point, the IS strategy must be derived from the company’s overall strategy.
Statistical review of corporate digitalization – The results will surprise you
The aim of this section is to reassure you about the digitalization of companies. Admittedly, it’s a subject that’s been fashionable for decades, but companies with fewer than 250 employees are gradually catching up. If you think you’re lagging behind, it’s not so obvious compared to other companies.
Below, we present the results of a survey for companies with fewer than 250 employees.
Importantly , the survey results do not take into account whether companies have made the right choice of software or IT solutions. Indeed, it’s not at all uncommon for companies to choose the wrong tools, which not only help them evolve, but also constrain them (functionally, technically, financially). So all these results have to be read with this prism in mind, and I optimistically think you can divide certain statistics by 2 (and pessimistically by 4).
If you’ve made the wrong choice of software, you’ve certainly invested a lot in this project, but tools like Lapala can help you turn the situation around to your advantage, while keeping the wrong software for as long as necessary.
90% of SMEs are relatively well equipped with management tools, but still lack multi-purpose business software.
SMEs software adoption :
- Accounting software – 72%
- Billing tool – 69%
- Payment terminal – 41%
- Cash register software – 31%
- Online payment – 26%
- Multi-purpose software – 26%
This analysis should also be taken with a grain of salt. When we say management tools, we don’t mean that they’re the right tools for the job. We could divide the statistics by 2 or 4, if we were talking about modern software respecting Internet standards.
SMEs generally carry out digital transformation projects themselves, using service providers for very specific and undoubtedly highly technical subjects.
Of course, 71% of companies have digital projects, but we understand that they prefer to carry out their digitalization themselves. The spending figures above only include spending on service providers.
To this must be added the costs of networks, equipment and software subscriptions, not forgetting the cost of the resources working on the project.
It’s important to remember that digitization is a new variable to be taken into account in a company’s business model. And all digital projects and investments must pay for themselves in terms of the benefits they bring to the company: improved performance, better collaboration, improved quality, increased efficiency, higher margins or sales…
Examples of company digitalization projects
In this section, we present a few examples of projects included in digitalization or digital transformation projects. They may be interdependent, depending on the context. We exclude projects linked to networks and ATAWAD equipment (which are nonetheless very important: they are the equivalent of water, gas and pots and pans for a restaurant. Without them, chefs can’t cook and the restaurant can’t serve customers).
- Business process automation and optimization (sales administration, purchasing, accounting, logistics, production, HR, etc.)
- Implementation of CRM, ERP, HRIS, management software
- Dashboard creation and data visualization
- Improved collaboration via platforms and software
- Team reorganization
- Digitizing thecustomer experience for product or service
What is the purpose of digitalizing companies?
More efficient operations
The digitization of companies means that know-how can be refocused on the tasks that add the most value. In fact, automation makes it possible to do away with time-consuming manual tasks, multiple entries in different software packages and the complex interfaces of certain software packages.
Smooth collaboration
Digital tools enable better communication and orchestration of tasks and approvals between employees. This advantage tends to improve the climate thanks to a better understanding of how things work.
Traceability, tracking and safety
Digitization brings with it invaluable tools for real-time measurement of key operating indicators (processing time, status, margin levels, etc.). Their analysis enables you to take a step back and make informed decisions.
Quality data
Tools such as workflow software simplify data entry, and automation helps avoid errors. Your data is complete and harmonized. They enable you to search for information more easily.
Tools and automation
The various software programs you implement will obviously have an initial cost, but the important thing in digitization is to implement solutions that deliver a return on investment. And this return on investment means you can make your project profitable, or even finance the next one.
Simplified process audit
Thanks to digitalization, all your processes will be documented and updated in real time.
This facilitates reporting, controls and audits. If you’d like to carry out a process audit, we’ve put together a detailed method.
Method: How do you digitalize a company?
Step 1 – Start by identifying and prioritizing all your company’s activities
An example of a macro process is shown opposite. It looks complicated, but it’s not. Mapping a macro process takes just a few hours and 3 steps. We have detailed and explained the method in a dedicated guide: Mapping your company’s macro processes.
Finally, in line with the company’s strategic objectives, prioritize the activities with the most at stake. The highest priority processes will be the first to be digitalized.
Step 2 – Audit at your own pace the highest-priority activities to be digitalized
This inventory will :
- For all activities, ranking of key processes taking into account various factors such as the number of FTEs involved, fixed and variable costs, degree of dissatisfaction and financial impact.
- Graphic representation of the process with stakeholders.
- Identifying improvements by assessing the added value for the customer and seeking solutions to remedy any problems encountered.
Find out more in our article on how to conduct a process audit.
Map or model requirements
A picture is worth a thousand words. Below is a model of a purchasing process.
Your graphical representation should be seen as a process roadmap. From left to right you can see :
- Actions (white boxes), consecutive or parallel (diamond with “+” symbol) and their actors (colored pillars)
- Input and output events (red circles)
- Conditions (diamond with “x” symbol)
- Key data
Of course, you are free to choose the content of your cartography. You can add on the same document or on other documents :
- Oral, paper or software interactions.
- Employee satisfaction with each operation.
- Tools, software and apps used.
- Processing times
- Maximum processing times
- Stock availability at each stage
- The problems and needs associated with each stage
Step 3 – List and prioritize automation and digitalization opportunities
Following collaborative formalization of the process, it will be easier to identify opportunities for automating tasks such as :
- Writing automation in Excel
- Collecting and monitoring performance indicators
- Data prioritization and sorting
- Multiple entries in different software packages
- Dunning and notification management
- Document creation
- Reporting
- Generating or sending documents
- The qualification of documents…
However, a company cannot satisfy all its needs simultaneously! It’s essential to prioritize each task that can be automated.
To establish the hierarchy of various needs, an organization can use an evaluation matrix, such as the one proposed below.
Example of a prioritization matrix for a purchase order entry task.
Once all the tasks have been prioritized, the company can build its roadmap for choosing or building a business app to gradually improve productivity.
Step 3 – Choosing the right digitalization tools
Bonus stage – Discover our business digitalization solution
You now know all about the digitalization of companies. Now it’s your turn! See you soon for more content!
Also interested in reading other articles on processes?
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