Start with digitization or digitalization or both? What should I begin with?

Words such as ”digital transformation”, ”digitization”, ”digitalization”, ”automation”, ”innovation” are already common language for many business people and professionals. At a general level we can all agree that these topics can be beneficial, however, at a particular level, things can get complicated and justifiably so. Each organization has its’ own particularities that can influence how a new technology can be implemented in day-to-day activities.

I will start this article by providing a definition of several essential terms in order to ensure a better understanding of the messages this article aims to convey:

Digitization or Automation: The Beginning. Implementation of software applications aimed at improving current business processes and at enhancing existing services

Digitalization or Going Digital: Exploration. Mixed use of different technologies, in an innovative way, aimed at developing new value propositions and service offerings for clients. It can lead to partial or total redesign of the business model

Digital Transformation: Courage. A series of iterative initiative, on a continuous basis, touching on both the current operating model (digitization) and the future way of doing business (digitalization) with the objectives to develop a competitive advantage and to delight the clients

Invention: Development of something that did not exist before (not necessarily viable)

Innovation: Using an invention or a mix of existing ideas in an useful and viable manner (in this case from a business perspective)

At first sight, when talking about digitization, some technical solutions might seem pretty ”standard”, however the way in which it is implemented and their impact can greatly vary from one organization to another. Moreover, unfortunately, it is widely known that many “digital transformation” initiatives are not successful. Some of the reasons for this are the following:

• Setting vague objectives with unrealistic expectations that demotivate employees
• Lack of trust in the information provided by the new systems
• Complex legacy systems that make difficult the implementation of “end to end” processes
• Resistance to implementing solutions that do not seem to be beneficial at the business unit level but are valuable organization wide
• Lack of the decision making power and of the capacity to facilitate change within the organization of the involved stakeholders
• The “astonishment” of the decision makers regarding the fact that software technologies need to be updated and maintained in order to properly function on the long term
• The feeling of frustration due to the lack of proper evaluating of the change impact at project outset (no matter how experienced or inspired we think we are)
• Lack of performance system tracking the success of the digital transformation

These challenges generate a perception of high risk associated with implementing software technologies that leads to a series of looming questions that block any worthy action. Is the investment worth it? Can we cover the needed budget? Will our people adapt to the new way of working? Isn’t it better to use European Funding instead of fully investing from own capital?

These are all valid questions, but, as counterintuitive as this may sound, their answers will not lead to impactful actions and desired results. Alternatively, a more pragmatic way of thinking (based on experience, best practices and exploration) can increase trust and resolution, especially when considering the following 3 essential principles:

I. Consider moderate expectations regarding the digital transformation projects

This does not mean having lower quality standards but accepting the fact that more criteria can define overall success and that it is alright not to achieve “straight As”, in other words, not addressing all the problems at the same time. However, those who aim for ” straight As” should commit to longer project durations, significantly larger budgets and higher project risk due to higher complexity.

II. Reduce process complexity

What are those complex activities that truly generate rewards for the organization and its’ clients and for which efficiency increase makes sense? How do you track and measure those rewards? What are those complex activities that DO NOT bring any reward and can be parked in the backlog?

III. Reduce scope of digitization (to start with)

What is the vital data that the business is counting on? What data can generate competitive advantage? Is all this data stored in a digital, secured, trustworthy form? Is the data traceable and easily accessible? What are the requirements for the processing power and connectivity needed to enable the use of this data?

The above mentioned principles help us define clear initiatives and projects to start the digital transformation while keeping expectations in check. In this way companies can monitor their evolution and their impact on daily operations.

Below you can find some real project examples of how Enovise Present helped companies start or accelerate their digitization process.

Example #1:

Client: Mihail Kogălniceanu International Airport in Constanta (AIMKC)

Mihail Kogălniceanu International Airport is situated in southeastern Romania. It is the main airport in the Dobrogea region and provides access to Constanța County, the Port of Constanța and the Black Sea resorts. The Airport conducts the following activities: airside operations, landside operations, Information Management and Administration. Some of the Airport’s main activities are related to ensuring safe and secure conditions for airlines and passengers. Safety and security targets are set by international and national regulatory bodies.

Client’s objective

The client aimed to reduce Safety and Security risk by optimizing and automating the Safety Compliance Management Processes. This implies digitizing all audit- and inspection-related activities. These activities refer to nonconformity tracking, field and office task management, execution monitoring, deadline signaling, notifications, internal and external reporting, data analytics of incidents. The digitization of these activities must comply with international and national aviation rules and regulations.

Solutions provided by Enovise Present

• Realization of Business Analysis needed for documenting the application concept
• Developing application requirements and concept mock-up
• Development, testing, and installation of the Compliance Management Application using cloud- based solutions
• Project Management
• End-User training

Deliverables

• Documented application concept and requirements
• Live operational Compliance Management Software Application
• User Guides
• At the end of the project, the client digitized 5 types of inspections and 4 types of audits. Moreover, the application enabled nonconformity management by managing all associated tasks. The application can generate various reports used by internal control, operational and management functions.

Exemple #2:

Client: Pluridet Comexim

Distributor of cleaning and disinfecting products to large public institutions for more than 20 years in Romania.

Client’s objective: To increase sales by increasing the efficiency of the public procurement acquisitions process

Solutions provided by Enovise Present: RPA based solution that automates some of the steps required during public acquisitions. The RoboSEAP solution scans bids, extracts relevant information, and classifies it as per Sales Department requirements. Some of the relevant information refers but not limited to: CPV code, bid submission deadline, value, product features, buyer etc.

Deliverables

• Automation of specific public procurement activities – scanning, extracting, classification of bids on a daily basis by using the RoboSEAP robot

Exemple #3:

Client: One of the major international retailers operating in Romania

Client’s objective:

The company wanted to increase its capital investments’ efficiency. From a strategic point of view it aimed to increase expansion speed while improving CAPEX control through an optimized CAPEX management and monitoring process. Operationally, it wanted to implement an integrated CAPEX management process and improve the reporting capabilities

Solutions provided by Enovise Present:

• Realization of Business Analysis needed for documenting the application concept
• Developing application requirements and concept mock-up
• Project Management and testing of the CAPEX application
• End-User training

Deliverables

• Documented application concept and requirements
• Live application
• User Guides
• At the end of the project, by means of this application the client significantly improved the decision making process for this type of investments. This allowed for better management of the expansion strategy and improved CAPEX control

If your ambitions regarding company “digital transformation” go beyond a simple idea and you seriously consider taking a step further in the upcoming period, I invite you to have a talk on this subject. We would be excited to help you along this fascinating journey! You can contact us directly on Linkedin or at the following email addresses: ionutzaharia@enovisepresent.com or adrian.banciu@enovisepresent.com.

More information and articles on digitization, digitalization and innovation topics can be found here: https://enovisepresent.com/en/news/.