How to Increase Productivity, Reduce Cost from Digitized Business Process?
Many companies are thinking to increase productivity, reduce cost thru the quest of digitization of business process and operation but finds it challenging, in finding which stage of business to begin. Digital transformation continues to be one of the most debated topics among the SME and individual alike in Malaysia Central, North, South, East Coast, Sabah, Sarawak. In Malaysia, government has made tremendous effort to grow economic, improve productivity, increase employment opportunity and accelerate innovation. SMEs in Malaysia represent 98.5% of total business establishments, contributing to 37.1% of the Malaysia Gross Domestic Product (GDP) and 66.0% of total employment in 2017.
Digitization of Business Process & Operation
With much nation initiative on the awareness of technology, and government gearing towards Industry 4.0, many enterprise and SME still ponder the potential of digital transformation and how it drives more productivity, reduce cost and benefit from digitization of business process and operation. As Transformation is a continuous process, SME have gone thru beyond the computerisation era; an adoption and usage of digital devices that are more geared towards individual usage and limited business application, while digitization is defined as business process transformation including new business model, performance optimization, customer engagement management, virtual office operation, social platform, support services and feedback loop thru business app riding on the resources in mobility and various IT hardware. Let us examine the benefit of digitization and how it can align SME to achieve highest productivity and build outstanding niche product & services.
To be truly digitized, SMEs must re-engineer and refresh their businesses by assessing and ensuring that their business strategies, business models, processes, and infrastructures are aligned and fully integrated to support their digital transformation
Source: Malaysia Digital SME Study 2018, SME Corp. Malaysia & Huawei Technologies (M) Sdn. Bhd
To obtain the ebook Guide on How to Get Ready for Digitization of Business Process, you will first need to download it using the button below. To access the download, you need to subscribe to Profound Information email knowledge list by using the form below. As a subscriber you will receive update on the latest various efficient way in business digitization and transformation strategy, when it is released!
Let’s Explore Hidden Value!
Most companies have “gut-feeling” where they want to go, want to be more agile, quicker to react, and more effective. Want to know more about how the digitization of business process can bring new and improved value in a company, which ultimately thrive for progress to an efficient and high productivity organisation?
To help show the way forward, let me break this down for you…
Digital Disruption, the Rise of New Business Model
The era of digital disruption is the reality now, whether you desire it or not. It is not a choice but rather that means breaking old habits and rethinking outdated mindsets. This refer to rethinking and reinventing new ways of working that focus on nothing, but creating value in constructing high performing organizational models to optimize your operation management, enhance marketing channels, which lead to creation of a great brand, thrive in the fast-changing business environment. It is by no mean, digital disruption create an opportunity for organisation, reevaluate itself and to gear organisation to set themselves apart from the crowd, to become new innovative competitor.
Source: McKinsey & Company: An Incumbent’s Guide to Digital Disruption
It is no longer a perception, digitization will save your company money. But still, company cannot justify to put a side resources in the digitization strategy, until they can gauge the core element in their organisation such as the start-up cost, the speed of access, the ability of business process be captured and remodel, operation efficiency, critical information visibility, quality engagement internal and client, brand recognition, and innovation of great products.
It is no longer a perception, digitization will save your company money
Now, this is important, you can see such wide benefit of digitization business process, but enterprise need to commit to a next-generation operating model framework, that combines digital technologies and operations capabilities in a well-sequenced way to achieve step-up change improvements.
Let me walk you through…
In Search for The Practical New Business Framework
Generally, to see the cost benefit of digitization of business, there is a need to have a practical framework, which has the capability to have constant measurement on the important core process in the most complex situation in one organisation. i.e. Handling of sales process & collection, how many touch points has incurred to customer in order to achieve a complete sales cycle. Another example is how long is the time, the material request can be approved, with ability to be cross checked with inventory and buyer requirement? In other scenario, how much time those actions are taking, and whether they are boosting revenues and cutting costs. But what does that mean? Such constant measurement, tracking, calculation will affect the impact of their digital initiatives more accurately, realignment of platform when necessary, to harness a different output.
One of the ways, to ensure successful value creation in company is to align the operational improvements, the internal process with the discovered customer experience. With such important understanding and realization, a clear purpose can be defined and desired operational improvements have been identified, organisations can implement the right business process tool to automate processes thru cross functional ways of working, linking back customer value and working on operational changes to improve efficiency and speed.
Such constant measurement, tracking, calculation will affect the impact of their digital initiatives more accurately, realignment of platform when necessary, to harness a different output.
Key to Building a Successful Business Model through The Successful Framework
Yeah, until recently, every businesses of multiple size begin to see the potential of utilizing an app for their business process, probably the Key to building a successful business and to gain competitive edge in company is to have a framework that able to take frequent measurements of what is working and what isn’t, how much time those actions are taking. The truth is by adopting digital modified business with the framework of virtual office, riding on the effectiveness of mobility thru employing business app on a mobile device to transform a business process to anywhere, anytime, chances are that the framework can become reality and effective, creating a true unique entity in its own industry, as a result, business can run as productive as possible, grow solidly.
The next generation envision business operating model: What is it and how do I build it?
Find out how HR automation task solution create opportunity for organisation to realign to capture impact and embed new capabilities
Converting Process in Practical Environment into New Business Reality
When considering the adoption of digitized business process, an organisation can creates a New way by converting process in practical environment, which is in manual or semi manual, such traditionally way is almost impossible to produce such an optimum output. Take for example a company selling property be able know the quality of property thru percentage of defect and instant tracking of company, who build the property, whom were awarded the contract, and the overall collection status of the property sold and the stages of loan S & P document.
Marketing, Distribution and Partner Digital Business Model
In the marketing and distribution segment, building of partnership thru self-service app, partner can access company product resources and will actually speed-up the transactions and allow partner to stay in competitive environment, spur up healthy company revenue. With that real time insight, the company can take Next action, regardless of where they are, thru the power of mobility, the affected team can understand and analysed information, decision can be made efficiently and informed thru the one platform.
In creating a sustainable business, leveraging on the digital technology, an architecture must be identified, possible with build in flexibility system, which enable business to collaborate with external party, supplier, partner, and with the internal core channel in creating an ecosystem, that gear towards efficiency and consistency. A healthy and lasting collaboration will be the one, which combine the right people, right business process, and the technology leveraging on the creation of the new culture, that cultivate continuous improvement and constant measurement of different business matrix.
Building of partnership thru self-service app, partner can access company product resources and will actually speed-up the transactions and allow partner to stay in competitive environment.
App Helps Revenue Expansion
The direct financial benefit gains may be difficult to capture in digitization of business process but over a span of time you will able to see the core process gradually moving toward a consolidation point leading to efficiency, cost reduction and increase profitability on the app platform. Imagine what it would be like, once you have an app platform to accommodate all products, detail of service offering clearly available on mobile tablet, transactions can take place anywhere in a whole new way. Additionally with mobile sales ability, confirmation contract can be digitally signed, immediately updated to organisation core resources for tracking.
Harnessing Data Intelligent on the Move
Product and insight together with analytical data can be made available in mobile device – i.e. partner order seasonal chart, partners’ pain point, partner inventory information & target market, historical transaction from existing partner can be can retrieved easily for informed decision making. With this, you can easily up-sale to loyal business partner or agent channel, and to loyal customer, therefore increase sales revenue.
In developing a successful digital partner model business, the speed and scale are necessary for a reinvention, i.e. in construction and property development business, developer, contractor, shared across many initiatives, building plans, project documentations, project progress, certificate of completion via business-process management (BPM) layers or central administration platforms, indeed these are the collaboration and relationships that companies can depend on to provide specific skills and capabilities quickly.
Reduce Opportunity Cost and Rediscover Hidden Opportunity
Extensive knowledge and insight of internal process is valuable for the organisation, resulted in rediscovery of opportunity that is hidden. Think about it this way, better flow of data input with accuracy can lead to improved analytic data and better forecasting of business model.
Real Time Visibility to Take Good Action
Having knowledge of inventory level in real time in construction business and having the ability to execute process to reduce the gap in material supply, posed a great advantage in the speed of delivery of the final product, if accumulated, the time saving can have tremendous impact in overall project schedule. That goes as well with having the visibility on operating status and number of assets i.e, truck and machinery, you can take good action based on what you see.
Structured Information from Business Process for Systematic Analysis
A well structure information captured from internal and external process can be a great input for systematic analysis, which can influence decision making. The analysis allows executives to evaluate the implication of each process in stage of business thru the business process i.e. in procurement, a forecasting tool to simulate budget vs actual in cost control and to develop a preliminary point of view, that can make decisions in advantage to the entire business.
Mobility & Visibility
If business process mobile app can control and provide mobility and visibility of the important core business process, inventory, sales, purchase information, financial, specific cost & labour process, by now, you’ll have realized the impact of digitized business process.
If in all type of industry, in essence, productivity, efficiency and profitability are your long-term goals, ask yourself how you can use business process mobile app combine with enterprise resource app to improve your business strategy and produce great revenue.
Business Operation Mobile App, a Virtual Office, Organisation, Customer & Partner Resources
Speed is what matter most in the current competitive business environment, if an employee have to provide feedback on documents and information frequently, then the mobile app serves as a fast response interface, even when he or she is not around his computer. Mobile apps provide easy access to information, making daily work more productive and interactive for employees. The virtual office space on mobile app of a business can provide access to business insight and data interchange, CRM software, time tracking, completing task on the go thru mobile app, delegation, task and responsibility tracking.
Do you see how huge this is, the rate of productivity and the cost-effectiveness being impacted?
Business Stage Push Notifications
In a highly productive agile organisation, there are a certain critical business stage, which is crucial to receive important notification. The mobile app technology can update organisation, employee and customer with the information for them on the go, automatically through push notifications. Which part of your business required constant notifications that may need hectic routine human action and effort of the workforce?
Impact of Business Operation Notification
That’s right, in the case of business process & operation app, it can notify each stage of the business, like when in case of sales empowerment app, when the revenue and sales commission for the sales person or team hit a whole new level, the notification will be push to salesman or team, bringing a renew energy and motivation to strive more. Likewise, in case of sales collection, at every stage of ageing period, it can notify the sales person and client automatically, for next course of action, thus reduce resources for manual intervention that is in a traditional platform.
Mobile Apps that Encompassed and Streamline Process
Mobile apps can automate and streamline processes, including supply chain, purchasing, distribution, or maintenance processes, and it all boils down to business running as productive as possible. With the information available thru a centralised exchange, thru mobile device, human has tendency to increase productivity and as new habit is practiced through and through. After company has digitized their business process, over a short period of time, thru core process analysis, business intelligent can be created, draw out to mobile device anytime, anywhere. With that insight, customer can identify areas that need further improvement, which segment of operation can reduce cost of inefficiencies while increasing revenue.
Social Platform and Engagement in Business Process thru Mobile App
How many clients actually come back for repurchase after initial purchase of good? The concept of customer loyalty has grown traction. Company want to make it convenience for customer or business partner to have continuous engagement, part of retainer business plan, which lead to ongoing capturing of company revenue.
How to Stand Out in Crowded Market Environment
In the crowded space, the message you want to convey could get lost, but here’s something interesting, because of technology disruption, now a business process mobile app can create a truthful and sincere connection between your business, your business partner and your client. The fact that it is closest to the person fingertips, means increased recognition and loyalty. A client can easily share information to other person, when it is on mobile platform. For example, in property business, a client can become referrer, thru business app, he can refer a property with beautifully written advantages to the other friend. Influencer marketing has been around for decade but with the advancement of app technology, it can truly empower client to expand company revenue in whole new way!
Because of technology disruption, now a business process mobile app can create a truthful and sincere connection between your business, your partner and your client.
New Way of Managing Customer Support Operation and Social Platform in App
Everyone can understand that visual can deliver message, which can be understood faster and effectively. Having a feature such as photo sharing feature, in-app messaging, and comments, report chart included in part of the business process and operation clearly present an effective way of leading a better customer service and support.
Building a Renew Way in Resolving Issue
Imagine that any defects in building during defect warranty period, a picture can be taken and building floor plan can be mark to show defects and using app on site to channel back to company, routed to service department or directly to contractor & manufacturer for next action, with generated case ID, the whole process can be completed in lightning speed and documented for future data analysis. For any other type business, the same support process applicable and should there be a need to incorporate comment, the app is in favor of it, for it is mean to create – convenience!
Is that something you’d like for your business?
- Bold Initiatives
In order to embrace the benefits from digitized some segment of business operation, organisation need to be bold in creating initiative to redesign the next-generation operating model. Which area in your organisation that need disruptions in the current business process?
- Great Customer Experience
Organisations will gear toward to be more agile, fast to react, and more effective in delivering great customer experiences. What group of digital technology platform approach, would you use to reinvent user experience transforming the customer journeys?
- Business Process Redesign
Here’s the bottom line, companies always find ways to build value and lower cost of operating business. Digitized process, well sequences way to produce change, improvement, and lean operation capabilities. In the rethinking of business operating platform, use in approaches and capabilities can be part of digital reshape. How business mobile App can be synchronised to Enterprise Resource system to speed up the process and produce advanced analytics data?
- The Ultimate Human Potential
Human is the most valuable asset, with a fine tune well being, the potential is infinity. By eliminating manual and time-consuming tasks, repetitive, replicate, and routine tasks thru automation such as HR self service employee portal, payroll automation, e-leave, e-claim errors can be eliminated and human workers can focus on delighting client and thinking about how to lead the organization.
Being collaborative, flexible, and user-focused, the principle of agile framework that is a raging heart in modern architecture, that can make a company successfully leap into a recurring pattern of success in the journey of digitization. Experience shows that the leading influential force that move up the power curve is in fact a step up–function improvement in productivity thru a chain of bold, courageous initiatives, in a multiple interconnected functional pillars that reinforce each other, therefore create thrusts that cumulatively propel continuously change.