Office 4.0 - How to introduce process optimization through digitization as an SME?

Our modern working environment is becoming ever more complex and extensive. “Automate what can be automated” is a common management rule. In practice, however, this is often only implemented to a limited extent. Digital affinity is one of the relevant factors here. With advancing digitization in everyday office life, working life has changed significantly. Work processes are becoming more time and location independent. Software already performs many steps automatically. Today, the term Office 4.0 stands for process-optimized, digital work. A clear and tangible indicator of digital corporate maturity is, for example, the extent of manual typing of information from documents. An often avoidable relic is found at CAYA. Because digitizing and reducing paperwork can be easy.

With the current possibilities of software to automate document-based processes, a new, more efficient way of working has developed. The basis for this is that all documents are available in digitized form. In the following sections, it should be clear to companies that are still familiar with terms such as automated document processing or AI that the Switching to Office 4.0 processes simply, securely and efficiently is.

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Digital change - What does Office 4.0 mean and where is it developing?

Why Office 4.0? In connection with the service sector/ office work, this figure can be compared with the four industrial revolutions. From mechanization and mass production to computer-aided production in Industry 4.0. Applied to the context of the service sector, Office 4.0 stands for a software-based, more efficient form of modern office work. This is supported by automation, digitized document management and AI. At CAYA, we call it automagy.

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Where do the terms Office 1.0-4.0 come from? that Office 1.0 Was through handwritten written paper documents marked. Its period stretches from the 18th century to the 1970s. Due to analog and mechanical working conditions at the time of industrialization, there were no significant developments in the processing of documents, in terms of automation. Whether ink and pen or typewriter — document creation remained manual.

As a result of the mass-market use of computers at work, modern office work has developed from the 1970s, with the Office 2.0, changed significantly during this time. Office 2.0 is still primarily characterized by working with paper, but also by computer-aided preparation of documents. Manual work was reduced and the first automations took place.

As a result of the Internet and computer-aided office work, Office 2.0 has changed significantly up to the 2010 years. Since then, we've been talking about Office 3.0. This is heavily influenced by digitization aspects, such as the widespread distribution and use of the Internet. What distinguishes Office Concept 3.0 from its predecessor are in particular collaborative aspects. This includes digitally creating and editing documents stored in the cloud. Here, you can work together anywhere and in real time. There is a central document repository, the so-called Single Point of Truth (SPOT). This represents a uniform data basis for document management Dar. Different file versions, stored on individual hard drives, which must be laboriously synchronized and synchronized, to a version in the cloud. The networking of smallest areas of living together through the Internet of Things (IoT) or big data is a characteristic of modern Industry 4.0.

Many companies are already using the collaborative options offered by Office 3.0. However, most offices have often not developed further since the 2010s until today. They do not exploit new opportunities at all or only to a limited extent.

Digitalization 4.0 definition/working world 4.0 definition - How to develop a more efficient work philosophy in Office 4.0?

Since the beginning of the 2020s at least, we have been talking about a further change in the working world and Office 4.0 terminology. Synonyms or spellings such as Office Four-Point Zero, Office 4.0, Working World 4.0, Work 4.0 or New Work describe the possibilities of decentralized work in a similar context. This focuses on open and transparent communication and goal-oriented decisions by employees at their own discretion. At CAYA, we see Office 4.0 as a particular focus on automated, digitized document processing. We want to enable companies to further exploit this potential.

Automated, paperless processes represent the most important basis for digitizing the working world 4.0. The impact of New Work Digitalization on the working world is immense as a result of these technical options, as leverage effects can be achieved to scale processes.

By digitizing (previously analog) processes, software can independently perform repetitive tasks for employees. Manual effort for tasks is significantly reduced. Employees are relieved. For example, automated processes often complete the payment of invoices almost independently. The employee still has control over this — often better than before. For example, if you use a digitization provider for letter mail, such as CAYA, incoming invoices are automatically digitized and payment data read out. Linked to the appropriate accounting software, the read data is then automatically entered into the programs and the responsible employee receives all data for final decision during the monitoring process (Decision Ready). A huge time saver.

In the above-mentioned example of digitization in Office 4.0, self-learning AI does a good job. It reads information, including on the basis of document standards and OCR scan (Optical Character Recognition). AI then reliably classifies and tags these documents. In this way, documents can be further processed with a high degree of automation. Previously analog documents, such as emails, can be searched with a full text search. Incoming invoices are identified as such and automatically tagged Invoice. The Office 4.0 concept is therefore characterized by a process structure in which many workflows are carried out automatically in the background. Employees can focus on the essentials.

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Optimized work processes in Office 4.0 can apply to a wide variety of areas of the company. The following areas benefit particularly strongly from digitization in Office 4.0:

• IT infrastructures
• data structures
• data quality
• Work areas/methods of employees
• Agile work structures
• personnel development
• Change management
• project management
• quality management

Office 4.0 - advantages of a more efficient work philosophy

In order to be able to work collaboratively and anywhere in real time, it is important that all relevant information is available in digital form. This includes the consistent reduction of paper documents. Most documents can be stored digitally in a legally secure and long-term manner. In the linked article, we show best practices.

Anyone who consistently uses the opportunities of Digitalization 4.0 with the right tools will enjoy a number of advantages. We have listed the most important ones here.

• Focus on value-adding activities — less monotonous tasks

Anyone who works in Office 4.0 structures reduces repetitive tasks through automation. This reduces the risk of errors due to manual processing. Because humans aren't clickbots. Software carries out monotonous processes more efficiently, securely, error-free and completely “automagically”

• Work from anywhere

Since Corona at the latest, it has become clear that digitization is inevitable, not only in the economy. A digitalized office environment makes it possible to work anytime and anywhere, e.g. working from home

• Administration: Intermediate steps are omitted

Automation, for example, means that you no longer have to laboriously type in all payment data when invoices are to be paid. Here, software automatically reads out and enters the respective software for payment.

• Real-Time Capability of Administrative Activities

Collaborative work on joint documents is strengthened. Digitized documents are made available to larger groups more quickly. There is only one file version where all changes are directly visible in real time.

• Clarity through dashboards

Data from various systems can be brought together in just a few dashboards. No more than 30 different inboxes. Complexity (if desired) yes, complexity no.

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How to successfully step into the future of Office 4.0

First, companies should inventory which processes can be easily digitized and automated. Once a selection has been made for process optimization, the tool selection follows. Die digital transformation to Office 4.0 depends heavily on the use of appropriate software. Depending on the business model, software selection criteria are completely different from company to company. The supervised introduction of software in medium-sized companies (predefined processes for efficient use in addition to technical implementation) is also often neglected. Software implementation doesn't stop with setup! Best practices in use should be defined on a company-specific basis in order to work more efficiently with programs. Points that a Lighthouse orientation on relevant software criteria We have listed them here in Office 4.0.

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When transitioning to Office 4.0, consider:

1. Service Level Agreements (SLAs)Agree on the scope of services with providers in writing
2. Interfaces/APIsThe corresponding solution should be able to be connected with other software to the required extent
3. Common communication and data exchange platformMost companies do not have a platform that bundles administrative activities and processes. Media breaks due to various tools such as Microsoft Exchange, CRMs, project management tools or databases are common. One-cockpit solutions that bundle tools into meta dashboards provide a remedy here
4. Data protection & legal complianceTools should be checked for the list of requirements of the GDPR criteria. Only absolutely necessary personal data should be collected. Only authorized persons should have access, data should be transmitted and stored in encrypted form and destroyed in accordance with regulations. It is also important to ensure that cloud data is hosted within the EU
5. ease of useA good user experience is an important criterion for successfully introducing new, intuitively understandable software. When purchasing new software, make sure that it is accessible and manageable for potentially many employees
6. Prioritizing process evaluation Which processes can already be automated now with minor hurdles? What is the cost/benefit ratio for digitizing your processes
7. SupportFor the optimal introduction of digitized processes, care should be taken to ensure that there are contact persons for support. Either with the software provider or in-house with the specialist department

In keeping with this: Our podcast episode of how CAYA successfully made the move to Remote-First Company and Office 4.0.

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Grow in Office 4.0 through smart software selection ✔️

As soon as the requirements for a new purchase of software have been clarified internally, there is another digitization question to be clarified: should it be an integrated complete system (complete solution for everything: best of suite) or do you choose the best-of-breed approach (best tool for every task)? At CAYA, we believe in a so-called best-of-breed approach to software in Office 4.0. Highly specialized and connected. This means that the best tools by category (e.g. document management or accounting software) should be selected in such a way that, in addition to fulfilling the required functions, software also communicates with other software whenever possible and achieves synergy effects.

Thanks to the numerous interfaces of various software tools, it is now easy to flexibly link individual software solutions together and to reduce monotonous work or manual work. The fact that all-in-one software solutions have a wide range of functions is also their disadvantage. Regardless of whether the functions are required or not, they are still available. This means less agility and flexibility for adjustments, while at the same time increasing dependency and often higher costs.

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5 benefits of choosing best-of-breed software

• Act more responsively & respond more individually to market requirements
• Efficient, because targeted software provides support exactly where it should
• Highly specialized
• Interfaces to other software
• Flexibility through scalability

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A multifunctional software landscape based on the best-of-breed approach offers an excellent starting point for continuing to successfully introduce Office 4.0 processes in the company and to make your work steps faster and more secure.

If you would like to find out which 4 factors make a digitization strategy successful, please also download our Quick Guide: Digitalization Strategy down. There, we worked out further aspects that help to master the transition to Office 4.0. Design your successful journey to Office 4.0 together with CAYA as a digitization partner.

By the way 💡: Would you like to know how you can approach digital transformation as an SME in a strategic, planable and science-based way? Please also have a look at our linked article on the ACT framework for strategic digitization.