A Digital Transformation Initiative Can Improve Operational Efficiency!
According to a recent report published by a financial research firm, the top reason for implementing a Digital Transformation (Dx) strategy (and the top benefit from said strategy) is to improve operational efficiency. 40% of those businesses surveyed said that operational efficiency was a primary driving factor.
‘When implanting a Digital Transformation (Dx) initiative, take the time to gain a thorough understanding of how a consistent, dependable set of business processes can be incorporated into the Dx strategy.’
There are many factors included in operational efficiency. As businesses review their business model and processes, these factors are often ignored. But, if they are given adequate weight in considering the Dx implementation, the enterprise can reap many benefits.
In this article, we discuss the various factors of operational efficiency and how Digital Transformation can support and improve business goals.
Sustainable, Persistent Business Processes
A business hires and trains individual team members, taking into consideration background, experience and education. The business then invests time and effort to train the individual on unique business practices and processes. Over time, a team member develops short cuts and performs tasks in a particular way – one they find suitable to their role and their preferences. But, when a team member leaves or is promoted, all of that information goes with them. Some of these processes may be beneficial to the business. Some may not. But, in any case, the business will have to start over and invest in the next team member to get them up to speed. When Digital Transformation (Dx) initiatives are mapped out to include a complete review of available systems, manual and offline processes and approval loops, training gaps, etc., the enterprise can look for ways to automate tasks, provide checklists and ensure that systems and software are available to team members to avoid redundant efforts and incomplete or inaccurate information. By building these strategies in to the Dx effort, the business ensures that the processes, activities and tasks are sustainable and that, if a team member is out on leave, moves on to another company or is promoted, those processes will remain consistent and be transparent and easy to adopt for the next person in line. This approach makes the organization more productive and saves time and money on training. It also ensures that the enterprise can avoid missteps and that crucial tasks do not fall through the cracks.
Measurements and Metrics
To ensure operational efficiency, the enterprise must have a way to monitor and measure results and evaluate the consistency of efforts and work product, timeliness etc. across the business. By implanting a Digital Transformation initiative, the business can create a digital metrics environment where systems and users are connected and reporting is based on consistent measurements and schedules.
Insight and Agility
Operational efficiency improvs business agility and competitive positioning by avoiding wasted time and effort. Dx initiatives can also provide more insight into data, performance and progress and, in so doing, ensure that businesses are not caught unaware. Supply chain issues, distribution issues, budget overruns and incomplete or delayed projects are all factors in agility and, by ensuring that systems, software solutions and user adoption of tools is in place across the enterprise, and that the business infrastructure supports timely alerts, collaboration and other resource optimization and productivity factors, the business can improve results.
‘There are many factors included in operational efficiency. As businesses review their business model and processes in preparation for Dx initiatives, these factors are often ignored.’
When a business takes on a Digital Transformation (Dx) initiative, it is important to take the time to dive into the details of operational efficiency and to gain a thorough understanding of how a consistent, dependable set of business processes can be incorporated into the Dx strategy to create a sustainable, productive environment.
Find out how the right IT consulting partner can support your Digital Transformation initiative and start you on the road to success.
Original Post : Understanding the Impact of Dx on Operational Efficiency!
