What is process digitization? What benefits do businesses receive when digitizing processes?
As business operations expand, applying a manual process gradually becomes less effective as businesses face continuous changes in objective factors such as the increasing number of business partners, rapid transformation in products and services, as well as the constant evolution of the workforce. Many businesses are facing management challenges due to ineffective "patchwork", overlapping information, lack of synchronization and flexibility between departments. With the support of technology, business operations can now be put on a digital platform to help automate manual activities that consume time and resources. So what is process digitalization? What benefits do businesses receive when investing in digitizing processes? Let's find out with 1C Vietnam in this article!
I. What is process digitalization?
Process digitization is the process of leveraging information and documents by converting them into digital formats to improve and change the way a business operates, workflows, and business operations. A specific example is when documents are stored as digital files on a server or on a cloud platform; Business personnel can easily search and access information conveniently. Thereby, work processes become faster, more flexible and more efficient, thanks to the convenience of accessing data within the organization.
II. Compare process digitization and digital transformation
The digital age has also given birth to many definitions of "digital", causing many people to still have misconceptions about the differences between "digital transformation", "information digitization", and "process digitization". To clearly differentiate, each of the above concepts is defined as follows:
1. What is digital transformation?
Digital transformation, also known by the English term "Digital Transformation", is the process of integrating digital technology into every aspect of a business. Digital transformation is taking advantage of advances in technology to fundamentally change the way we operate, business models, and at the same time provide new value to customers. Digital transformation is not only an improvement process, but also a cultural change in business organizations. This requires flexibility, a willingness to experiment with new things, and a willingness to accept failure as a natural part of the innovation process.
2. What is information digitization?
Digitalization of information is the transformation of information, data and documents from physical - analog form to digital format - digital. A common example of information digitization is when paper documents and records are scanned and converted into PDF file format, then stored on a business's internal server or on cloud solutions. The process of digitalizing information creates an important basis for implementing new steps in the digital transformation process of businesses.
3. What is the difference in process digitalization?
Based on the definition presented earlier, it can be affirmed that process digitalization plays an important role as a prerequisite step, building an essential foundation, creating the basis for businesses to advance to the highest level. of Digital Transformation - Comprehensive Digitization (Digital Transformation).
III. What benefits do businesses receive when digitizing processes?
Organizations, when implementing process digitization or digital transformation, often evaluate innovation effectiveness based on different criteria, similar to how administrators evaluate conventional projects through profit indicators. return on investment (ROI). While the successful outcomes of process digitalization strategies may vary depending on size and industry, in general, adopting process digitalization provides many overall benefits. In general, digitizing processes can bring businesses the following 6 benefits:
1. Improve productivity and work efficiency:
- Process digitization helps complete repetitive tasks quickly through work automation.
- Optimize working time and create conditions for workers to perform work that creates higher value.
2. Reduce operating costs:
- According to McKinsey research, applying process digitalization can save up to 90% of operating costs, reducing slow manual processes.
- According to a report by Deloitte, more than 40% of businesses, after applying process digitalization, have seen results that exceed expectations.
3. Increase transparency:
- Using digital technology to automate and monitor business processes creates transparency, increasing trust from both employees and higher management levels.
4. Consistent quality assurance:
- Digitizing processes helps ensure every activity within a business happens in a consistent way, resulting in high-quality and reliable products and services.
5. Increase operational flexibility:
- Digitalizing business processes promotes high flexibility for businesses, helping organizations quickly adapt to changes and restructure the apparatus more easily.
6. Make timely and accurate decisions:
- Digitizing processes helps provide consistent information, supporting leaders in making decisions based on reliable data and helping businesses maintain proper legal compliance.
IV. Tools to digitize processes and support effective digital transformation - Digital Office 1C:Document Management
Digital Office Solution 1C:Document Management is one of the leading tools to support businesses in digitizing processes effectively. Through comprehensive digital office management capabilities on a single interface, the software helps improve internal operating capacity, increase flexible adaptability and contribute to the success of the digital strategy. Streamlining business processes:
*Process management:
- Digitize the entire operating process on a digital platform, eliminating dependence on paper documents.
- Monitor and control the processing and approval of documents and work easily.
*Document management:
- Centrally manage and store all types of documents, minimizing physical storage area for businesses
- Look up information quickly and accurately anywhere, anytime.
*Project management:
- Make detailed plans and assign tasks directly step by step.
- Monitor and control progress visually, allocate resources effectively.
*Workflow management:
- Conveniently delegate, manage and control work progress.
- Use GPS and automatic report export to manage work, monitor and evaluate work performance.
* Digital office management:
- Support scientific management of administrative work.
- Easily collect statistics, track and look up information.
- Automatically export reports quickly, with accurate metrics, with intuitive reporting screens and the ability to customize data according to management needs.
*Mobile application:
- Integrating digital signatures helps approve documents and manage records anytime, anywhere.
- Managers can control and manage employees and work remotely easily and conveniently.
Applying process digitalization is the first launching pad for businesses to possess strong digital capabilities, improving their competitiveness in the constantly evolving and volatile marketplace.
Contact 1C Vietnam now to get advice on the most suitable solution to support digitalization of processes!
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