It is high time: we have been talking and writing about the digital transformation for many years. And yet SMEs are not yet ready.
In the meantime, however, the crises are becoming more frequent. Companies are facing a variety of challenges - from unstable supply chains and rising energy prices to a lack of qualified employees and many more. This situation has even found its way into the dictionaries: in 2022, the Collins Dictionary chose "permacrisis", which means "an extended period of instability and insecurity", to the word of the year.
One consequence of the sometimes rapidly changing environment is increasing pressure on earnings. Balance sheets often look very bleak: Profits shrink or companies fall into the red. This can only be remedied by taking a courageous look at the business models. These and the associated business processes need to be critically reviewed - and adapted to changing environments and situations if necessary. No company can avoid the digital transformation. After all, the use of information and communication technologies enables diverse optimizations:
- Shorter communication channels accelerate work processes.
- The automation or partial automation of routine tasks gives employees more capacity for tasks with greater added value.
- Digitalized processes provide data for reliable forecasts and thus accelerate decision-making.
So it's not a question of "if" or "when", but "how": How can companies digitalize central processes?
Process management is the basis for the digitalization of company processes
The first thing is: companies are required to first look at their "process map" in order to digitalize their business models and business processes. The process map from the quality management of earlier times is no longer sufficient: It is usually too superficial and has often not even been created with the employees involved. Such process maps are not at all suitable for digitalization: they usually lack not only concrete and systematic descriptions, but above all data and documents.
Process management is therefore unfortunately often a foreign word or a non-word in companies. People always talk about "our" processes. But they are not "lived" in companies. But what this really means and what needs to be done is unknown in many places. A consistent focus on this topic, on the other hand, creates many opportunities - also because process management is an essential basis for the automation and digitalization of company processes.
In my experience, the four most important steps are as follows:
1. Carry out an as-is process modulation.
First of all, a profound as-is process mapping, an as-is process modulation, is necessary for the digitalization of company processes. This must be carried out systematically, carefully and in detail. This means that it is essential to conduct personal and expert interviews with the employees involved. They must be sensitized and brought on board at the beginning of the process recording. During the interviews, the individual process activities as well as input and output states should be recorded and documented. In addition to the verbal description of the elements of a process, the characteristic data and documents must also be recorded. These are essential for subsequent automation and/or digitalization.
2. Document your processes with BPMN 2.0.
Excel or Visio are no longer really useful for documenting processes today. What is needed instead is a documentation tool with interfaces that are suitable for further data processing and therefore as a basis for automation and digitalization. This is where the standardized BPMN 2.0 (Business Process Management Notation) comes in. This tool is web-based and user-friendly. And it enables collaborative work with several teams. The BPMN tool is based on a graphical representation with standardized elements. This allows processes to be described clearly, unambiguously and systematically. In addition, the standardized interfaces simplify the desired automation and digitalization.
Classification of own responsibilities leads to new perspectives
The individual processes are represented in so-called "swimlanes", in which the respective organizational units, such as customer, sales, purchasing or production, are arranged. This makes it possible to display an end-to-end process map - from customer to customer. This is often almost like an epiphany for those involved. They no longer see their activities and responsibilities in isolation, but as part of a whole - the company and their colleagues. This creates new ways of seeing and interpreting: Suddenly there is clarity and opportunities for collaboration beyond the boundaries of one's own activities.
3. Let smaller teams question existing processes.
In a subsequent step, smaller teams should then scrutinize the individual workflows to determine whether they
- are fit for purpose,
- effizient und
- effektiv
sind. In this way, indications for process improvements emerge very quickly. This measure alone enables significant cost reductions and improved operational reliability at an early stage. Building on this, continuous improvement processes (CIP) can then be implemented and intensified in the company.
4. Digitize suitable company processes.
Once all business processes for which this makes sense and is possible have been examined for optimization, digitization can begin. Here too, the individual teams should be brought back on board. The first option here is, for example
- the integration of the existing ERP (Enterprise Resource Planning),
- the activation of active store floor management and
- the design of efficient preventive maintenance to ensure smooth production operations.
In addition, there are many other use cases that have already been successfully implemented in Industry 4.0 projects. Advantages can be gained from digital workflows in almost all parts of the company - from purchasing to design, production and sales through to service. Production machines can also be considered in the processes: Even older machines can be integrated through retrofitting.
Conclusion: employee involvement is essential in all phases
With the digital transformation of business processes, medium-sized industrial companies are becoming more flexible, more efficient and more reliable in their decision-making. This will create a new sense of togetherness in leadership, company management and among the employees involved. In my experience, it is crucial for this to succeed that the employees involved are always brought on board and involved in all phases of the transformation process. For the following reasons:
- Business processes can only be recorded systematically and in detail as part of as-is process modulation with the specialist knowledge and experience of the employees involved.
- Individual teams can collaboratively document their processes with the appropriate tools and thus prepare them for subsequent digitalization.
- This provides initial indications of possible optimizations.
- Finally, employee involvement is also essential during the actual digitalization process in order to bring the new workflows to life.
These change processes that have now begun must never be stopped, as the possibilities will expand exponentially in the future. Open your eyes and senses!
