Inventory of Processes and Services
Our recent publications on digital transformation emphasized the challenges organizations face when embarking on this often adventurous journey toward a better, digital future. We have highlighted (as seen in the article"Digital Transformation: A Key Strategy, Not Just a Marketing Buzzword?”that successful digital transformation requires a well-defined strategy, leadership commitment, and a focus on creating value through improved customer experiences and operational efficiency. However, there is another perspective without which we cannot move forward with the transformation.
Not Just Strategy
The challenges related to digitizing services and processes are equally important to consider. According to McKinsey, organizations encounter significant obstacles, such as the need for a comprehensive redesign of business processes instead of simply automating them, new skills and roles, and adapting operating models and data strategies. Whatfix points out further challenges: evolving customer needs, lack of IT skills, security issues, and the cultural change that must occur within organizations for digital changes to be successfully implemented. The range of areas these challenges come from underscores the complexity of digital transformation and the need for a proactive, strategic approach to navigate it effectively within a company.
Digital transformation is a multifaceted endeavour that impacts the entire functioning of a company, and successful implementation requires a series of strategic, operational, and cultural changes.
Process and Service Analysis
Let's recall the stages we distinguish when undertaking one of the first steps of a responsible and well-prepared digital transformation—in other words, the inventory or analysis of processes and services in our company. This process involves several key steps, including creating a list of all processes and services, mapping them within the organizational framework, and providing detailed descriptions of each process and service.
Inventory of Processes and Services
The first step in the analysis is creating a comprehensive list of the organization's processes and services. This list includes both primary business operations and supporting functions. For example, a manufacturing company might list procurement, production, quality control, and logistics processes, while services might include customer support, sales, and after-sales service. This list should be exhaustive to ensure that every critical process or service is considered during the digital transformation.
Mapping Processes and Services
After creating the list of processes and services, the next step is mapping them. At this stage, we create a visual representation (process map or flowchart) that shows how each process and service is interconnected. Mapping helps understand the flow of activities, identify bottlenecks, and spot opportunities for improvement. It also clarifies how different departments and teams collaborate, contributing to the organization's overall functioning. Business Process Model and Notation (BPMNor process mapping software are undoubtedly helpful at this stage.
Process example
Describing Each Process and Service
Once processes and services are mapped, it's time to describe them. Each process and service should be described in detail! This description should include:
Purpose: What is the goal of the process or service?
Inputs and Outputs: What resources are needed, and what is produced or delivered?
Steps: Detailed steps or actions that make up the process.
Stakeholders: Who is involved in or affected by the process?
Performance Metrics How is the performance of the process measured?
For example, the goal of a customer support process is to efficiently resolve customer issues. Inputs might include customer inquiries and support resources, while outputs are resolved matters and satisfied customers. Steps might include receiving the inquiry, diagnosing the issue, providing a solution, and following up. Stakeholders include the support team, customers, and potentially the product development team for feedback. Performance metrics might include resolution time, customer satisfaction ratings, and the number of resolved issues.
EXAMPLE
Procurement Process:
Purpose: Procuring and purchasing materials needed for production.
Inputs and Outputs: Supplier offers, purchase orders (inputs), received goods, payments (outputs).
Steps: Request for quotes, supplier selection, placing the order, receiving goods, processing payments, negotiations with suppliers, warehouse acceptance, etc.
Stakeholders: Procurement team, suppliers, finance department.
Performance Metrics: Cost savings, lead time, order accuracy.
Customer Support Service:
Purpose: Assisting customers with their inquiries and issues.
Inputs and Outputs: Customer inquiries (inputs), resolved issues, and customer feedback (outputs).
Steps: Receiving inquiries, diagnosing the issue, providing a solution, follow-up.
Stakeholders: Support team, customers, product team.
Performance Metrics: Response time, resolution rate, customer satisfaction.
Through systematic analysis and documentation of each process and service, organizations can identify areas for improvement, streamline operations, and ensure that all aspects of the business align with their digital transformation goals.
A Journey Full of Surprises
When looking at a single already presented (and well-thought-out) process, it might seem that "there's nothing easier." However, it often happens that (due to the usually large number of processes occurring in a company) processes get overlooked. We are familiar with situations where, in the first round of analysis, everyone is convinced that the number of processes is X, only to discover that after an event storming session and a more detailed second round, it is two or three times higher.
Nevertheless, it is worth remembering that this knowledge is a step towards digital transformation and beneficial information about how the company operates. With such knowledge, we would not have to worry about digital transformation and also any other type of organizational change in the company.
