Which internal processes digitize as an SME?

Enough of endless paperwork and monotonous processes that take up time but barely generate any added value? That's when it's time to digitalize processes internally as an SME. We explain which processes can be a starting point for digital transformation and what needs to be considered.

Many medium-sized companies are still struggling with analog work steps. These take a lot of time. Many are also often unaware that digitizing these processes can immensely increase the efficiency of a company. Even as digital transformation progresses, Processes in small and medium-sized enterprises often even more annoying and superfluous paperwork. Including copying documents or even opening letter mail. Digitalizing such business processes can bring a lot of relief.

Why digitize processes?

Digitalization and the Working in the cloud has many benefits: Digitizing processes means saving time and costs, having less chaos in the office and, above all, discovering potential for optimization. Thanks to digital business processes, repetitive tasks are completed quickly and easily — and also more securely. This is because sources of human error can be reduced and there is only one digital “single source of truth”: If a document is in the cloud, there are no more duplicates and outdated versions. Document management in the cloud is also available for Remote Work important. This allows employees to work from anywhere. Digitalization therefore brings efficiency, greater overview and transparency for all industries. Through process optimization, employees can use the time they have gained to pursue important, value-adding activities.

What are digital business processes?

Processes are basically part of every company and describe logically related tasks and work steps. After ISO 9001 standard Companies must work in a process-oriented manner and across departments to ensure quality. By digitizing analog processes and automating workflows, companies get digital business processes. Process digitization supports daily work and management and enables digital and location-independent work.

Examples of digital processesThe real estate service provider McMakler, for example, revealed to us in an interview. The company digitizes its letter mail with Caya and has combined suitable tools such as accounting software. As a result, invoices no longer have to be scanned or entered manually by employees, but are read out and automatically transferred to the software. This automation gives employees significantly more time for value-adding activities.

Process management — strategic and operational

However, digital business processes are not the only step on the way to an efficient paperless office. The right tools, such as smart software and the cloud, do help to work more digitally. But at the same time, SMEs must also ensure that to think in a process-oriented way. Effective process management is therefore part of every successful company. This is the only way to increase efficiency. Management should also question: Which process steps and workflows are really necessary? Or which stakeholders must be involved when and where?

Which processes digitize as an SME?

For small and medium-sized companies, meaningful digitization is not possible without the question: Which processes digitize and automate? In order to promote productivity, there are, in particular, manual routine tasks that teams would otherwise have to work monotonously and extensively.

The digitization of monotonous tasks is also accompanied by optimizations in the area of lean management. This methodology is essentially concerned with using corporate resources as waste-free as possible. For example, using value stream analysis, processes can be mapped and better prioritized.

Digitizing business processes is always a good idea when efficiency is increased and employees are more satisfied with their actual tasks. Automatic tasks can be created very well in these areas, for example:

Digitize HR processes

Digital HR processes can help with recruiting or employee management, for example. But digital vacation applications also ensure seamless and satisfying workflows with the right tool, because it works simply and quickly. Above all, location-independent and automatable. In the best case scenario, employees automatically receive feedback.

Digital employee onboarding

Employee onboarding is essential for a quick and effective start. Many companies are still checking off their checklists here — and forgetting important details such as hardware, access or the office tour. Digital onboarding processes leave much less room for errors here. Including through automated reminders. Specialized software such as Talmundo or Elearnio can help SMEs digitize onboarding. Alternatively, reproducible onboarding workflows with reminders can be created in project management tools. Here, however, everything has to be created manually at the beginning.

Digitize letter mail

Whether it's an invoice or a notice from the office: Many SMEs are still a long way from a paperless office due to letter mail. That doesn't have to be the case. Incoming mail processes can be improved digitally and efficiently. Like real estate service provider McMakler. The company spoke to us about its experiences with digital mail.

Digitized letter mail is once again a cornerstone for further, subsequent processes. If content is read from invoices received by post and automatically transferred to financial accounting software, this process works much faster. Sources of human error when typing are also reduced.

Optimize project management

SMEs can also benefit from process digitization and appropriate tools when it comes to project management techniques. The right software for agile or classic methods takes a lot of work off.

ERP for planning business processes

Probably the best-known digital program for managing business processes is an ERP system: an Enterprise Resource Planning System. Information on resources, such as materials or personnel, can be exchanged and organized across all departments. ERP programs are powerful systems, the purchase of which requires a lot of planning. We recommend checking here: What range of functions do SMEs need to get started? What are the requirements? In order to react flexibly to new needs, a best-of-breed approach is often appropriate. Companies rely on specific, professional tools on the market for individual processes — and integrate them modularly into the existing system landscape.

Digitize payments and accounting

Financial accounting quickly comes to mind when it comes to recurring business processes. SMEs can save time and money particularly well here. This is because smart tools for online bookkeeping enable the digitization of cash flow processes reliably and automatically.

Better digital customer relationships with CRM systems

Customers want personal, fast service and, above all, seamless experience with companies and customer service. In order to provide the best possible support for customer acquisition or sales, SMEs should rely on software for CRM, i.e. customer relationship management. This makes it easier to work with customer data. No more lengthy searches in email flows or chat tools: All important information is combined in one central location and can also be accessed remotely by every employee.

Digital offer preparation

Companies can also increase their own efficiency when preparing offers. Without digital processes, prices often have to be calculated cumbersome and customer information gathered. And this is despite the fact that customers prefer to have their offer right away. Instead, digital offer management can deliver faster and satisfactory results and thus possibly lead to more customers.

Overall, SMEs should start with processes that are at the forefront of the process chain when digitizing processes. This includes, for example, letter mail or the maintenance of customer data in CRM. If a CRM with master data is well maintained, the integration of software for creating offers also becomes simpler and easier.

Once the first processes have been successfully digitized, there are also other areas for process optimization. For example, when managing knowledge with an intranet.

How to identify digitization potential?

SMEs recognize digitization potential in companies by analyzing their process chain in detail. What are the weak points in internal business processes? Where is change urgently needed? Which workflows are preventing growth and productivity? Which stakeholders are bottlenecks — i.e. where do communication or processes depend?

In addition to analyzing steps at the start of the process chain first, if possible, it is also advisable to listen carefully to employee voices. In addition to top-down planning, open brainstorming sessions are recommended here. This allows you to integrate employees directly involved in processes.

Is it difficult for you to prioritize construction sites that require digitization? Would you like to approach your digital transformation strategically from the ground up? No problem.

The ACT method (Analyze, Create, Transform) also helps to identify potential. The method encourages companies to start with the status quo: What is the level of digitization? With this method, it is easy to quantify the degree of digitization of your departments and processes. This means that you work less as you feel if you don't know your construction sites yet. You can also compare your individual assessment of digitization needs with figures.

How are processes digitized?

When digitizing business processes, step one is for every company to analyze the current situation. Detailed process modelling makes it easier for SMEs to break down even complex workflows. Only with the complete documentation of processes can companies create a meaningful roadmap and define goals and requirements. Based on this, they can make technology decisions.

But is there a specific “process digitization procedure” following the tool decision? When digitizing, companies must sensitize employees to efficient, lean processes and involve them in the necessary change processes. After all, they have the most knowledge of internal processes and should benefit the most from optimized business processes. Training on why standardized processes and process management are crucial for success and efficiency is also helpful. In this way, everyone pulls in the same direction and can use the full potential of digitization.

No process digitization without suitable software

Digitalization is not possible without smart software. And with every new software decision, successful implementation is also imminent. In particular, SMEs should also check and prioritize interfaces with established digital tools. For example, can the tool for digital inbox also be integrated with the accounting software?