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Chapter 1. Point of Entry
Stages on the Path of Transformation

Оглавление

We have defined the concepts and objectives of transformational change, and now we need to understand the way to go, what are its main stages?

First, let us look back and recall that digital transformation is the final step in the complex transformation of an organization. Thus, the main stages of complex transformation are: automation, digitalization and re-engineering of business processes, digital transformation.

In this case, the first and second stages may switch places (personally I consider this replacement the best option).

Consider these steps in more detail.

1. Automation, process conversion to IT

For example, electronic workflows often duplicate existing paper practices and only complicate the work. Without optimization, the process gets worse (those who worked in large corporations, probably faced with SAP or 1C systems).

Pros:

– acceleration of current processes;

– new ways to perform operations;

– process control may appear;

– integrates the work of less connected divisions and departments.

2. Digitalization

Rewriting, including with IT, active use of process optimization technologies. First, re-engineering techniques are applied to build optimal processes, and then they are translated into «digit».

Pros:

– optimizes the organization. structure and job responsibilities;

– simplifies processes and provides flexibility, reduces costs.

In addition, if you initially deal with digitalization, and only after this automation, you will save money, because when you re-invent processes, eliminate losses and implement the first digital tools, automation will be easier and cheaper, and the effect is higher.

A simple example. Now you have a process with a large number of agreements that you have decided to automate. We did a good deal of work, we spent money, everything works in the IT system, but the process is still the same as it was. You still have to wait for the key man to put his visa or delegate the task.

In the principles of lean production, all this is considered a loss – actions that do not create value for the end consumer, but increase the internal costs.

Additionally, there will be many such trials.

Additionally, if you initially think about how to simplify this process, do the simulation and selection of the necessary scenarios for automation, then you have to automate less, which is cheaper. And once again you don’t have to automate after optimization. That is, you won’t pay twice for solving the same problem.

3. Digital Transformation

I repeat a key point: unlike automation, TP does not focus on internal processes, but allows you to use new technologies for business and growth.

However, personally, when working with small and medium-sized businesses, I start with an analysis of the. structure. It often turns out that there is no clear and unified understanding of who does what, what is responsible for, what authority, responsibility, resources. Additionally, how do you work on business processes when everything changes weekly? What’s the point of introducing and automating something?

Below, in chapter 4, you will be familiarized with one case of restructuring and without system configuration. The result was paralysis of production and chaos. Now imagine that such changes are constant. There is more harm than good.

Digital Transformation for Chiefs and Owners. Volume 1. Immersion

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