Digitalizing processes is essential for the efficiency and competitiveness of modern organizations. However, many companies make errors during this complex process. Here are the top 7 most common mistakes and how they can be avoided.
Author: Radu Mărgărit
Many organizations rush to digitalize without a well-defined plan, driven by the trendiness of digitalization rather than necessity. “Let’s digitalize because everyone else is doing it!” becomes the reasoning. But why digitalize? “Simple, let’s identify where we have issues. Sales? Let’s allocate a budget for digitalization there so the sales department has no excuse for poor performance.” A clear strategy is crucial to align digitalization with business objectives and avoid wasting funds on projects that will fail or fall short of expectations. It’s not a proper strategy without a comprehensive understanding of the needs across all processes.
Implementing new technologies without proper employee training leads to resistance and inefficiency. Many employees, especially at the executive level, may fear job loss due to digitalization and automation. Management may even have tools to block or downplay digitalization initiatives. “What would I manage if I’m left with no team? Will I be a robot manager?” Therefore, any such initiative must include a human management component.
Automating a flawed process won’t make it better. It’s essential to optimize processes before digitalization, as otherwise, it becomes a case of “garbage in, garbage out.” While the garbage may be automated, there’s little value in boasting, “Look how advanced we are in digitalizing inefficiently in Romania.” Process optimization is different and much more complex than simply labeling a process as <<digital>>. Digitalization and automation don’t fix fundamental issues with process design, quality, or employee training. We recommend optimizing processes before digitalization or doing both in tandem when adopting new technologies.
Selecting an unsuitable solution can lead to high costs and poor results over time. “But how do we know what’s suitable when we’re not experts in digitalization?” Choosing the cheapest option may seem safe, but a poorly functioning solution only burdens IT with more patches and fixes. Even with IT involvement, errors can happen—specialists have their own biases, interests, and agendas that may not align with the organization’s needs. Take the time to thoroughly analyze the technologies to make the most informed decision possible.
Isolated digital systems can create information silos. Departments may choose systems optimized only for their needs, not the entire company. “How will it integrate with the rest?” “Not my concern! My focus is on having the best CRM.” This fragmented approach leads to repeated data entries, weekly imports from Excel, and a general lack of cohesion, ultimately impeding real digitalization progress. Ensure new solutions integrate with existing systems and involve stakeholders who prioritize the company’s overall needs over individual department preferences.
Digitalization is a complex process that requires significant time and resources. It’s not just about budgeting for external vendors—who will oversee implementation? The provider? “Madi, can you speak with the automation team?” “Sure, but I know nothing about this process; I’m new here!” And Madi goes, and we all know how that story ends. To avoid similar failures, especially costly ones in state institutions, it’s essential to realistically plan internal resources to prevent unpleasant surprises.
In the digital era, information security is vital. Ignoring it can lead to costly security breaches. “But it won’t happen to us, right?” “Boss, the digitalization team says something’s not working because of our firewall. Can I turn it off temporarily to check?” And so, it happens—turns off, gets distracted, forgets to turn it back on, and later uses a pirated AnyDesk to access the system. Weeks later, computers display a message demanding Bitcoin payment to avoid releasing client data on the dark web. Data security is critical not only to avoid fines but for business survival itself. Never compromise on information security protocols.
Avoiding these common mistakes can help you achieve successful process digitalization, enhancing your organization’s efficiency and competitiveness. Although these recommendations may seem like common sense, it’s often the case that “common sense” is not so common.