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Digital Transformation Simplified
2021-05-18 18:03:52
Ángel García - Dir. de Estrategia Corporativa y Transformación Digital
When we are faced with the Digital Transformation of our company, hundreds of questions suddenly appear about what is most important and where we should start, as well as receiving input from all sides about what is best, which technologies will help us, which areas of our company are priorities and how best to carry out the whole process so that it is successful.
First of all, it is very important to have a clear focus, to know how to differentiate between Computerisation and Digital Transformation.
Many times we want to tackle a Digital Transformation project when our company is not even computerised, nor do we have the basic processes and tools for the management of a company. It is therefore necessary to evaluate this aspect before taking the following steps.
HOW DO I KNOW IF MY COMPANY IS COMPUTERISED?
There are basic functionalities that should be implemented in any company to be able to determine the minimum degree of computerisation necessary to move on to digitalising processes and business models. A technologically evolved company must have computerised the fundamental processes intrinsic to any business, regardless of its activity and size.
"GETTING OUT OF THE CHIRINGUITO".
By level of importance we start with basic administrative management, which is the first thing to be computerised in all companies. This is the management software or ERP, which includes Accounting, Payroll, Warehouse, Purchasing, Customers and Invoicing as the most important elements. If you have not computerised this part, including the back-up, you do not have a company, you have a small business.
CONTROLLING PRODUCTION IS BASIC
The second level of computerisation is in the tools that manage your production process. If your company is dedicated to specialised distribution, you must have a process and a system adapted to your business, so that you can measure every milestone and activity that is generated in your production activity, which is the distribution of goods and services. The same applies if your company manufactures and produces its own products. You must have tools and methodologies that control your entire industrial process and its distribution. If your company is dedicated to services, the computerisation of your production management will be based on a tool that can manage the environment assigned to your services proactively, which, as basic functionalities, allows you to inventory the assets and document the services associated with each "client" element and which, in turn, has a tool for managing incidents and associated activities. This is also where the need for security solutions and systems arises, as production systems interact to a greater extent with each other and with other elements outside the company, coinciding with the explosion and development of hyperconnectivity.
WITHOUT CUSTOMERS WE ARE NOBODY
The third level of computerisation is in customer-oriented management. This aspect is key in the current business context and has been with us for 20 years and continues to be the great unknown for many entrepreneurs. It is one of the most surprising gaps, considering that it is one of the pillars on which the TDM (Digital Transformation Measures) that help to digitise companies are based.
FROM MANAGING RESOURCES TO DEALING WITH PEOPLE
We hardly notice it if we do not look back, but in the last 30 years we have substantially changed the way in which employees participate with their work in the activity of the company, and yet the tools and processes that can facilitate the management of the relationship with employees are one of the great absentees in the computerisation of companies. Models of compliance, flexibility, risk prevention, types of recruitment, employee profiles and motivations, the way we live and interact have changed... However, most companies do not have modern policies, processes and tools to get the best out of managing and interacting with their employees. There are basic tools for smooth and documented communication and process management. This area of People and Talent has become one of the key aspects of Digital Transformation.
FROM BALANCED SCORECARD TO DATA-DRIVEN MANAGEMENT
In the 1990s, Kaplan and Norton developed the Balanced Scorecard methodology, a revolutionary approach to successfully managing a company or project through scorecards, with simple and clear perspectives and objectives. In the initial BSC model they worked on 3 perspectives, which coincide with the areas of basic computerisation of the companies, exploiting the available data to carry out a company management based on the crossed information between the basic key parts:
TicTy and DigTy THE ICT PYRAMID AND THE DIGITAL PYRAMID
Just as Abraham Maslow showed us the hierarchy of human needs in his famous pyramid, our methodology uses the pyramid concept to express the hierarchy of computerisation and digitalisation needs of companies.
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HOW DO I KNOW IF MY COMPANY IS COMPUTERISED?
There are basic functionalities that should be implemented in any company to be able to determine the minimum degree of computerisation necessary to move on to digitalising processes and business models. A technologically evolved company must have computerised the fundamental processes intrinsic to any business, regardless of its activity and size.
"GETTING OUT OF THE CHIRINGUITO".
By level of importance we start with basic administrative management, which is the first thing to be computerised in all companies. This is the management software or ERP, which includes Accounting, Payroll, Warehouse, Purchasing, Customers and Invoicing as the most important elements. If you have not computerised this part, including the back-up, you do not have a company, you have a small business.
CONTROLLING PRODUCTION IS BASIC
The second level of computerisation is in the tools that manage your production process. If your company is dedicated to specialised distribution, you must have a process and a system adapted to your business, so that you can measure every milestone and activity that is generated in your production activity, which is the distribution of goods and services. The same applies if your company manufactures and produces its own products. You must have tools and methodologies that control your entire industrial process and its distribution. If your company is dedicated to services, the computerisation of your production management will be based on a tool that can manage the environment assigned to your services proactively, which, as basic functionalities, allows you to inventory the assets and document the services associated with each "client" element and which, in turn, has a tool for managing incidents and associated activities. This is also where the need for security solutions and systems arises, as production systems interact to a greater extent with each other and with other elements outside the company, coinciding with the explosion and development of hyperconnectivity.
WITHOUT CUSTOMERS WE ARE NOBODY
The third level of computerisation is in customer-oriented management. This aspect is key in the current business context and has been with us for 20 years and continues to be the great unknown for many entrepreneurs. It is one of the most surprising gaps, considering that it is one of the pillars on which the TDM (Digital Transformation Measures) that help to digitise companies are based.
FROM MANAGING RESOURCES TO DEALING WITH PEOPLE
We hardly notice it if we do not look back, but in the last 30 years we have substantially changed the way in which employees participate with their work in the activity of the company, and yet the tools and processes that can facilitate the management of the relationship with employees are one of the great absentees in the computerisation of companies. Models of compliance, flexibility, risk prevention, types of recruitment, employee profiles and motivations, the way we live and interact have changed... However, most companies do not have modern policies, processes and tools to get the best out of managing and interacting with their employees. There are basic tools for smooth and documented communication and process management. This area of People and Talent has become one of the key aspects of Digital Transformation.
FROM BALANCED SCORECARD TO DATA-DRIVEN MANAGEMENT
In the 1990s, Kaplan and Norton developed the Balanced Scorecard methodology, a revolutionary approach to successfully managing a company or project through scorecards, with simple and clear perspectives and objectives. In the initial BSC model they worked on 3 perspectives, which coincide with the areas of basic computerisation of the companies, exploiting the available data to carry out a company management based on the crossed information between the basic key parts:
- Administrative and Financial
- Production management
- Customer relations
TicTy and DigTy THE ICT PYRAMID AND THE DIGITAL PYRAMID
Just as Abraham Maslow showed us the hierarchy of human needs in his famous pyramid, our methodology uses the pyramid concept to express the hierarchy of computerisation and digitalisation needs of companies.