Part three
IN the world of digital, the term “digital operations” is not as common as compared to the other functions of management. According to the Boston Consulting Group, digital operations focuses on the customers’ journey, the end-to-end business processes, as well as IT operations that support the enterprise.
Successful business models are definitely a result of standardized and efficient business processes. Simply put, a business process is a series of steps that are done in order to achieve the business’s objectives. Without a good process flow, there is higher risk for failure.
In the previous topic on digital marketing and digital sales, the focus was on the customer. However, it is important to note that all functions of management are intertwined with one another. Although customer needs and wants are key, the “back end” process must still continue to play its role. In fact, no business can exist with mere sales, marketing or human resources. There must be balance between the “front end” and “back end” side of the business, to ensure that management of all stakeholders’s experiences are met.
Today, the advent of technology has made digitizing of operations much easier. Yet, setting this up requires a lot of work. First, top management must be willing to invest in change management and become highly strategic in investing in the right type of software and hardware that fully match the business. Second, employees must undergo training, so as to understand the role of digital operations and not just be familiar with running the application per se. Third, cross functional collaboration must become part of the culture of the entire company.
It may sound exciting and complicated at the same time, but once business processes are intact, digital operations management becomes successful. As cited by the Boston Consulting Group, “digitization, when done right and at scale, yields in a 10 percent and 20 percent reduction in production and supply chain costs, a 15 percent to 30 percent reduction in working capital and incremental revenue growth of up to 6 percent, as a result of enhanced productivity.”
To be continued
Dorelene Dimaunahan is an entrepreneur, educator of the country’s top universities, a host and an author. She is also a Certified Franchise Executive, Certified Management Accountant and a Certified Human Resources Practitioner.
This column accepts contributions from the business community. Articles not exceeding 600 words can be e-mailed to boa.secretariat.@gmail.com.