SME digitization: How to check opportunities for digital transformation and optimize processes in a predictable way?

Few companies actually check how digitized they are. There are numerous undiscovered potentials for increasing efficiency here. We provide inspiration and specific recommendations for planned step-by-step digitization and clear up digitization reservations.

According to the study “Digitalization in German SMEs” by Star Finanz, smaller companies in particular are critical of digitization issues. How does that come about?

For this purpose, 11,000 companies from various economic sectors were surveyed. According to their own statement, almost 45% are facing a (necessary) change in their business model over the next 5 years as a result of digital transformation. However, only 11% of companies want to proactively tackle digital transformation. The reason is, among other things, that many companies are undecided are What effects digital change has on their business model. Almost every 4th company stated that they could not precisely foresee future changes. After all, how digitalization has developed for banks doesn't have to apply to tool manufacturers or insurance brokers. As a result, digital change is stagnating in many areas of business — untapped potential.

There is often a lack of predictability for technological change. This is also due to fear of going in the wrong direction with major digitization decisions. Digitalization must also fit into corporate culture. For example, some companies may find it difficult to reach customers primarily via digital channels. Personal contact plays an important role for them. Others see digital channels as an opportunity for greater reach and new customer experiences. What now supports advocates of digitization in understanding the reservations of other parties involved and in influencing a corporate culture for digitization?

According to the Star Finanz survey, 83% of the companies surveyed generally perceive digitization as an opportunity. In particular, 91% of companies that are younger than 5 years old have a positive attitude towards them. Small, older companies are often more skeptical. Larger companies (over 500 employees) have the most positive attitude towards digitization. An obvious reason here may also be the already existing need for digital processes for coordination and knowledge management. In small companies, communication is also much more intensive via informal channels (coffee & cigar break, corridor radio... often not digitally). Among surveyed companies with up to 9 employees, just under 26% even regard digitization as a threat. That doesn't have to be the case.

The reasons given for reservations about digitization are that it does not see any added value (47%), lack of time (45%) or cost reasons (15%). In addition, there is often concern about implementing too big changes in the ongoing process. For these skeptics, we'll show in the next few paragraphs how you can easily Digitize step by step and keep an eye on their progress while saving resources.

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Start digital transformation at the top of the process chain (1/5)

Start a digitization strategy with an analysis of the status quo. What can be digitized and to what extent? To do this, form teams from different departments. After all, processes should interlock.

We recommend starting with the areas that represent the first step in process chains. In many cases, this is the incoming letter. Die Digitalization of your own inbox helps to bring analog documents into the digital process and speeds up processing. With CAYA, you can not only easily receive your mail online, but you can also digitally manage it directly in our document management system and process it from anywhere. In addition to saving space, a document center like CAYA also saves you a lot of paperwork. For example, it is no longer necessary to physically file or forward letters in paper form.

In addition, invoice data can be recorded using OCR scan technology and through interfaces Automated transfer to accounting tools. With that There is also no need for annoying, error-prone manual typing or copy-pasting.

Changes in this step promise a strong influence on the further successful course of the process. Consider which analog processes are at the beginning of your process chains and list them. If you the most important Identify digitization potential and record them briefly in advance, this will speed up your progress in further processes. With regard to prioritization and selection, we will explain below exactly what you can start with.

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Consider the scalability of digital processes (2/5)

Holistic thinking should be taken here. In addition to the basic digitization of communication formats such as web meetings or e-learning, particular attention should also be paid to more complex areas such as accounting or document management. What starts with a smaller volume should be able to be transferred to several processes at the same time in one step using bulk options (many adjustments are automatically implemented with one click). Make sure that newly selected software solutions offer bulk editing functions or can be expanded as needed.

By the way💡: Our advice article on the topic shows how you can use a framework to systematically and within a short period of time where you need digitization and how to systematically optimize this digital transformation with the ACT framework.

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Employee training on digitization (3/5)

In general, it is important to extend a digital strategy to all areas of the company. This allows process steps to be connected, automated and managed in a bundled manner (cockpit perspective). Aspects to consider include

• Mission & vision (strategic)
• Internal & external processes
• Work tools & tools
• cloud solutions

Let's now break down digitization from the strategic level to the operational level for all employees. According to morethandigital.info, an industry medium for digitization, there is a lot of potential here, especially when using software in different ways. Software solutions cannot just be used in one, right way. They also offer different types of use due to a wide variety of applications.

How can efficiency be increased here? As an example, ask yourself the following question: Are interfaces used so that employees are automatically informed about progress with completed processes in the software system? Or is it more likely that people also pick up the phone and then send an email? This can be useful for information-rich processes on an informal level, but is often superfluous. Processes can be achieved in various ways - standardization and knowledge of how software processes work helps. Make sure that employees follow process steps that are as similar as possible to achieve goals so that collaboration can work.

Also ask yourself: Can I summarize information on a topic in the same software tool, or do employees have to access multiple systems? If that is the case, can data be bundled directly into a tool via automatic imports? Alternatively, train the process so that everything is bundled in one place.

Training for improved use of software can be provided, for example, through internal coaching, via fixed processes in the company's own knowledge database or via external support. There is often a permanent contact here, which many software companies of a certain size offer.

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Getting started is easy - convincing employees to go digital (4/5)

When planning and implementing a digitization concept, it should be considered at the outset that employees need a certain amount of time to adapt to changing work processes. Auch Reservations or concerns can be reduced through many small partial successes. You also minimize the operational risk of making too many ongoing changes at the same time. Are you a supporter of digitization and would like to implement a digitization concept? Then it is recommended to use a step-by-step approachto get the workforce on board. Start by tackling processes that are easy to optimize. So Keep the barrier to entry low and have greater chances of a motivating start.

So that successes in digitization not only speak for themselves but are also noticed and supported, you should proactively point them out. It is recommended to use a Monitoring of digitization progress per process. This can be done at regular meetings, where the previously recorded situation in writing is compared with the new processes. Depending on your business model, evaluation criteria can include both quantitative aspects (saving time or reducing the workload) and qualitative aspects (e.g. perceived, simpler administration and less monotonous tasks).

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💡TIP! Don't keep the time gaps for feedback on digitization steps too short so as not to react to temporary fluctuations at the beginning, but to evaluate the overall picture.

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Engaging employees in digital transformation (5/5)

Top-down or bottom-up? Even with small companies, you probably don't know all the processes in detail themselves. Employees directly involved in the processes should therefore be asked what the biggest hurdles are in their process flows. You can address this by preparing a list of topics that you know can be digitized. Afterwards Get feedback. Alternatively, you can also ask a completely open question about what digitization offers. This offers more leeway. In any case, this approach supports employee involvement and ensures more identification of the workforce with digitization topics.

By the way: Modern, digitized process flows in companies are based on the philosophy of Office 4.0. The term Office 4.0 stands for a comparison to the four industrial revolutions. With the current potential of software to automate document-based processes, a new, more efficient form of work developed. The basis for this is that all documents are available in digitized form. How CAYA interprets Office 4.0, which steps lead to Office 4.0 and how you can achieve more digital efficiency as a result, is described in our Office 4.0 Guide defined. If you would like to know what funding SMEs can receive, please also have a look at the list of funding in SMEs in our linked article.

Have these initial tips for implementing a digitization strategy provided you with inspiration? Then get further, tangible tips on which factors contribute to successful digitization! Our quick guide”4 factors for a successful digitization strategy” is available as a free download.

sources:
https://www.starfinanz.de/2019/11/07/digitalisierung-im-mittelstand/https://morethandigital.info/https://www.kmu-magazin.ch/

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