Taking a relaxed approach to digitization

Digitization, digital transformation, Industry 4.0, IoT - no one can get past these terms in the business world today. We are in the midst of a structural change that is permeating all areas of companies and changing processes, working methods and customer behavior.

Those who do not manage to take advantage of these opportunities in time seem to be lost. Yet it is not the case that companies do not want to face the new challenges. According to a 2017 study by KfW Bankengruppe, 42 percent of companies have firmly planned to carry out digitization projects in the next two years.

In the search for the right approach to solving this problem, it doesn't help that there are a large number of applications on the market that are supposed to facilitate the digital transformation, but whose benefits remain obscure. The only thing that is really clear is that these offerings are backed by - surprise, surprise - tangible economic interests.

There are no patent remedies for dealing with digital transformation. Uber, Airbnb & Co. are fine showcases for the new possibilities, but they cannot be transferred one-to-one to other companies.

Nor is it always advisable to pioneer a new technology as a first follower, thereby exposing oneself to a high risk. The example of the digitization pioneers is at best an incentive to take the first steps in one's own company.

Even small, manageable changes are often enough to open up new business potential through digitization. A manufacturer of control cabinets, for example, can use the information from the control modules to offer its customers new services to improve energy efficiency.

The term digitization stands for process optimization using new technological possibilities. The aim is to link independent systems in such a way that processes can run automatically, without human interaction.

A pragmatic approach that shows direct success is the automatic handling of e-mail and paper-based processes. Business information becomes easily accessible without media breaks.

Subsequent processes can be automated end-to-end and thus made considerably more efficient. This applies to all document-dependent processes in the company. For purchasing and procurement as well as for sales processes.

The optimization effects that can be achieved in this way are shown by the example of the procurement process: Here, software systems can take over a large number of routine activities.

The system automatically recognizes all relevant document content. The associated internal control and approval processes are also handled electronically. Manual intervention is only required if deviations occur.

Requirements are already recorded digitally directly at the workplace. All steps for approval or clarification can then be carried out completely electronically - even before the ordering process.

This applies to checking and approving the material requisition as well as to clarifying account assignment issues. All important facts are thus clarified and the purchase order can be created automatically.

The subsequent processes are also simplified. Since all important information on the procurement process is already available, incoming order confirmations and delivery bills can also be processed quickly.

Manual typing or visual checking is not necessary: the important contents are automatically recognized by the software. The comparison with the existing order is carried out by the system. A large proportion of goods receipts can thus be accelerated considerably.

In invoice processing, the amount of manual work is greatly reduced because all important questions are already clarified in advance. Thus, the matching with the purchase order takes place automatically here as well.

Multi-stage workflows for approval thus become obsolete. A clerk only needs to intervene if there is a need for clarification. If the system detects no discrepancies, the invoice can be posted directly in the background, if desired.

This also applies to electronic invoices that are transmitted in ZUGFeRD format or by mail system, for example. These are transferred directly and also posted without an intermediate step.

By processing documents automatically and in real time directly in the SAP system in this way, a first step towards digital transformation has already been taken.