Digital evolution is essential for survival, but some companies are adjusting better than others. As we discussed in our last blog, organisations in the Nordics are ahead of their counterparts in other parts of Europe. Digitalisation is key to future success, as highlighted in a recent report by Microsoft.
Microsoft revealed in a US-based study that the most digitally mature organisations generate a yearly average of $100 million more in operation income compared to less digitally mature organisations. Still, some businesses remain confused about how to successfully go digital.
Digital transformation is a complex and ongoing journey, since technological evolution is constant. Since it’s not practical or affordable to get rid of the entire IT estate and start afresh with every evolutionary step, it’s important that solutions are flexible, and can integrate with hardware and software that’s old and new, while still contributing to the organisation’s innovation and digital maturity.
According to Microsoft, most businesses see digital evolution as a means to strengthening their existing core business. Even in the Nordics, there are still opportunities to innovate further. So where can these be found?
Reaching digital maturity
According to Microsoft’s report, fully integrated digital companies are those that think and act “digital first” in everything from customer interaction and product development to process optimisation. The report states that most companies across the Nordics are still in the early stages of their digital transformation journey.
Microsoft identified that some businesses have clear plans that will improve operational efficiency, but these have not yet been fully adopted. As a result, their desired impact is still limited. The report suggests that some initiatives fail to consider the organisation’s digital ambitions as a whole. The risk here is that they could fall back on old ways that will hold them back.
Optimising operations with digital evolution
Microsoft has identified that many organisations consider it a priority of digital evolution to optimise operations. Automation is a key part of this, as companies move away from outdated paper and spreadsheet based processes.
The report states that companies are getting better at generating data and using it to add value, but many are focusing more intently on engaging customers first. In order to get the best return on investment from digital transformation projects, this should be a key area of focus.
Microsoft states that the lowest priority in digital projects is to empower employees. This is a key untapped opportunity, since it can lead to better communication, closer collaboration, improved flexibility and productivity.
It can be said then that digital initiatives that empower employees can add value in product or service delivery, and improve customer and supplier relations with the organisation. We have written previously about the ways in which automation on P2P can empower employees, and how these can help the AP department to focus on strategic tasks that grow the business.
Digital transformation holds different meanings for different companies. But as these untapped opportunities highlight, projects across all areas of the business should be designed with digital in mind. Solutions should be flexible, and enable departments to innovate, driving the business forward rather than simply making current procedures possible.
Palette offers next generation P2P solutions designed with the future in mind. To learn more, visit our solution page or read the article about the Finnish enterprise Renta Group who automated the entire purchase-to-pay process.