Is your start-up or business venture in sync with digital transformation or are you still reticent about its long-term potential? What exactly is a business transformation? More importantly, what is stopping you from embracing it in totality?
These are poignant questions that necessity real answers because the digital transformation is turning out to be a precursor to the essence of business transformation itself. B2B organizations are increasingly confronted with the need to embrace fast-evolving technological landscapes, which is reflected in the burgeoning IT spending in EMEA.
B2B and other organizational heads across Europe are keen to leverage the IT sector to focus on innovation, deliverables, tangible results and an improvement in the quality of everyday life.
What is a digital transformation?
Put simply, digital transformation refers to the augmentation of business processes, activities, and initiatives to harness the potential of digital technologies in a strategic and systematic manner.
Digital transformation is not so much about the digitalization and automation of current business processes; it is essentially about creating an environment of innovative business models and digital processes.
Digital transformation is the way forward for start-ups, B2Bs and established firms. Since it has the penchant for exciting most of us, let’s look at some numbers:
- In Europe, digital platforms are nearing an overall value of EUR 4 trillion.
- Europe needs about 20 million initial-level entrepreneurs to close the wide gap with the US.
- According to more than 80% of all executives, platform-oriented business models will drive their growth strategy in the next 3 years.
- To challenge the US in the ICT sector, the EU would need to put in a massive EUR 335 billion.
- More than 75 % of the firms have identified the lack of digital skills as a major impediment to their digital transformation goals
Business Process Modelling
The colossal growth in networking and communication technologies in addition to the advent of big data has shaken up businesses and their operational strategies like never before. It is no longer feasible to survive (let alone thrive!) in the seemingly safe cocoon of your old business models.
In this parlance, business process modeling (BPM) is defined as a structural description or representation that depicts a specified set of business activities in a specific organizational unit.
BPM deals with performance and process-related efficiencies that are intended to boost business outcomes. Digitalized processes now feature prominently in the ambit of BPM, which includes the involvement of big data experts and Internet of Things, among others.
A BPM involves use cases like case management, digital transformation, application composition, intelligent apps and process improvements, among others.
The business (or digital) transformations are primarily influenced by:
- Customer behavioral patterns
- Technological innovation
- Extraneous factors
Relevance in Digital Transformation
It is impossible to digitalize a business that you do not understand. As an innovative start-up venture, you not only need to know the nuances of operating a business but also must understand how to make it operational in a digital setup.
To that end, you may want to understand your customer demands thoroughly to establish a feasible digital transformation society while also being familiar with the ins and outs of a soon-to-be digital process where customer remains the focus.
Now, here is the thing.
All your digital processes and innovative ideas mean very little unless they offer a meaningful benefit to the all-important stakeholder- the customer!
It is not sufficient that the entire spectrum of customer experience is transformed. As an organization that aims to keep customer experience as its pivot, you should empower your customers to engage in a manner that they are comfortable in.
In that context, a digital interaction is the need of the hour where a collaborative, customer-centric interaction is a key element of a comprehensive BPM that also includes partners and suppliers.
If you’ve understood this properly (take your time doing so), you will realize one thing:
A BPM is nothing less than a company’s nervous system. This means that BPM is not merely something that a company does; BPM is the business itself.
Is a process model the same as drawing?
No, it isn’t.
The key difference between drawing and a process model is that the latter follows a testable method. It makes use of a process that explains the objectives and operations in a simple, understandable manner.
The advantage of a business process model is that unlike drawings, it can be understood by everyone who is not unfamiliar with the method. Models can also be shared with all members of a group using a collaborative online portal which serves as a repository of digital information.
Practical benefits of BPM
- A strategy is formulated only after understanding the customers’ needs, which increases its efficacy
- A process that is in line with your overall digital strategy
- Cohesion and simplification of complication operational processes
- IT-powered digital breakthroughs that unleash a societal revolution
Also published on Medium.
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