The Most Common Business Process Improvements From Digital Transformations

Summary

In this video, Eric Kimberling, CEO of Third Stage Consulting, explores key business process improvements driven by digital transformation. He highlights the automation of manual tasks, centralized data visibility, improved financial consolidation, and predictive analytics. Kimberling also discusses the benefits of machine learning, artificial intelligence, and shared services models in enhancing operational efficiency. He emphasizes that accurate data management is crucial for leveraging these technologies. The video aims to guide organizations on maximizing value from their digital transformation initiatives.

Takeaways

• 🔄 **Business Process Improvement**: Digital transformation often aims to improve business processes, with automation being a key driver.
• 🤖 **Automation of Manual Processes**: The first step in digital transformation is typically automating repetitive tasks to increase efficiency.
• 📊 **Centralized Visibility**: Digital technologies provide centralized access to information, which is crucial for better decision-making.
• 💼 **Financial Consolidation**: Improved financial consolidation is a common goal, aiming to streamline financial reporting processes.
• 🛠️ **Shared Services Model**: Larger organizations benefit from consolidating redundant functions into a shared services model for cost savings and efficiency.
• 📈 **Predictive Analytics**: The use of AI and machine learning allows for better planning and forecasting, improving business processes related to demand, manufacturing, and procurement.
• 🔗 **Supply Chain Management**: Advanced technologies help manage supply chain unpredictability, a critical issue in the current economic climate.
• 💾 **Data Management**: Effective data management is fundamental to leveraging AI, machine learning, and business intelligence for process improvement.
• 📚 **Resources for Transformation**: Third Stage Consulting offers resources like an annual digital transformation report and software rankings to guide organizations.
• 🌟 **Strategic Benefits**: Beyond incremental improvements, digital transformation can lead to strategic restructuring and innovation within organizations.

Q & A

What is the primary driver for digital transformation in businesses?

The primary driver for digital transformation in businesses is the desire to improve business processes, which includes automating manual processes, enhancing visibility, and increasing efficiency and effectiveness.

Who is Eric Kimberling and what is his role?

Eric Kimberling is the CEO of Third Stage Consulting, an independent consulting firm that assists clients worldwide in advancing through their digital transformation journeys.

What is the first and most common improvement organizations expect from digital transformation?

The first and most common improvement organizations expect from digital transformation is the automation of manual processes across various functions and business processes within the organization.

How does machine learning contribute to business process automation?

Machine learning contributes to business process automation by taking over highly repetitive and redundant tasks, allowing employees to focus on more strategic work and managing exceptions.

What is the significance of centralized visibility to information in digital transformation?

Centralized visibility to information is significant in digital transformation as it reduces the time spent searching for data and provides real-time access, enabling better decision-making and insights into business operations.

What are some technologies that provide centralized visibility into business processes?

Some technologies that provide centralized visibility into business processes include business intelligence tools like Microsoft's Power BI or Tableau, and enterprise resource planning (ERP) systems.

Why is improved financial consolidation important in digital transformation?

Improved financial consolidation is important in digital transformation because it enhances efficiency, effectiveness, and accuracy of financial data, which is crucial for business value and regulatory compliance.

How does a shared services model contribute to business process improvement?

A shared services model contributes to business process improvement by consolidating redundant functions across the organization, leading to time and cost savings, and a more consistent way of conducting business.

What role do predictive analytics and artificial intelligence play in planning and predicting for the future?

Predictive analytics and artificial intelligence play a crucial role in planning and predicting for the future by providing better accuracy of data and tools to make sense of that data, allowing organizations to anticipate future outcomes based on past events.

Why is better data management considered a critical business process improvement?

Better data management is considered a critical business process improvement because accurate data enables organizations to take full advantage of technologies like AI, machine learning, and business intelligence, leading to more effective operations.

What resources does Third Stage Consulting provide to help manage digital transformation?

Third Stage Consulting provides resources such as an annual digital transformation report featuring best practices and lessons learned, and independent software rankings for various types of software to assist in managing digital transformation.