Part 3. Digitalization and Automation of Business Processes – "To Be"

In the previous article, I mentioned that we should start digitalizing and automating business processes by evaluating the current state (“as is”). This means building a map of business processes with their interconnections and highlighting where data is located, which software applications we already use, and where we still have paper and manual file operations.

Once we have a clear picture of the current state, or the so-called “As is,” we can look at the “To be”, meaning the desired state. Where would we like to be? From here, things get even more complicated. Each company is unique and approaches this topic (digitalization and automation) in a specific way. However, we can identify at least three possible strategies with multiple implementation methods.

1.”Digitalization and automation are not strategic objectives”

The company does not have digitalization and automation as strategic objectives and information technology is seen as a “support” element of the business, not a “core” one.

1.1 “Strong” IT Department

We define a strong IT department if it is involved in strategic decisions, budget formation, acquisition decisions (more than just “signing off”), is well-sized, and has multiple competencies (hardware, networks and operating systems, application development, data analysis, etc.).

In this case, to outline the “to be” state, we will look at the company’s strategic objectives. These objectives show what we must do to get where the company wants. The strategic objectives are probably too general and vague to help us outline the “to be” state, so we will consult the tactical objectives of each department for the next year. Likely, the IT department is already involved in the initial stage of defining departmental objectives so that it will be aware of the needs and tactical objectives.

Let’s assume that a tactical objective of the Customer Service department for 2025 is “Reducing the average response time to customer requests by 25% over the next 12 months while maintaining a customer satisfaction score of at least 4.5 out of 5.” From this tactical objective arises a need for digitalization and/or automation. After analyzing the list of tactical objectives for the next year, we can obtain a list of potential digitalization and automation needs from which we can then define the “to be” state.

1.2 “Weak IT Department”

We define a weak IT department as one that is not involved in strategic decisions, budget formation, or acquisition decisions (only “signing off”), is understaffed, and has limited competencies. In this case, digitalization decisions are made at the general director level or within each department. IT is merely informed that a program/platform/solution is to be purchased and that they need to help colleagues configure/install/access it. As a result, the IT system develops heterogeneously without an overall view and understanding of the implications. When asked how the desired application connects with the rest of the IT system, I have often encountered clients representing a specific department who responded, “I don’t know, and I don’t care. I have a budget and want an application that solves my x, y, z requirements.”

In this case, the “to be” state will be constructed from disparate information received from departments and senior management.

2. Digitalization and Automation Are Strategic Objectives

In this case, the situation is significantly different. Because we have a strategic objective of digitalization and automation, human and budgetary resources will be allocated for it. Moreover, there will likely be an implementation strategy for the objective, and implicitly, a professionally defined “to be” state.

3. Digital Transformation

The strategic objective is to transform the business model for optimal operation in the digital economy where we find ourselves, or in some cases, even for survival. In this case, digitalization and automation become “core” components. Significant budgets are allocated for transformation; employees are trained to develop digital competencies, and detailed transformation plans exist. In this case, the “to be” state is defined very precisely with the involvement of senior management and derives from the company’s vision.

In conclusion, regardless of which of the above situations we find ourselves in, we need to define as precisely as possible, with top management’s involvement, where we want to be from a digital standpoint. We have the “as is” and “to be” situations. The next step will be to outline a transition plan, set deadlines, allocate resources, and then start its execution. The following article will explore the challenges of building this plan.