The digital transition will require management from you. Because this is the way of life and business of your business.

Understanding the digital transition

Today, it is often heard that it is difficult to survive in the business world unless your organization undergoes a digital transformation. Advertising that businesses "armed" with information technology are expanding very quickly is very strong in society Therefore, there are directors who say that they want to have ERP, they want to automate their business processes, they want to have records, they want to have applications, they even want to use artificial intelligence. Also, some of them start to worry when they hear the word "digital transition" and say, "It's very difficult, it will be quite expensive, how to form an IT team."

However, the term "digital transition" is too general. As a general rule, generalization of any task does not lead to any results. The first question that arises in connection with this concept is: "So how do we measure whether the digital transition has taken place?" In other words, what does it take for someone to come to your organization and say, “You've made a digital transformation”? It's not just a matter of budgeting enough to buy software and hardware. It is not enough to create a knowledgeable and capable IT team or hire such a team. In other words, it's not just about creating working conditions for IT staff. The most important ingredient needed for digital transformation is "soul".

Digital transformation isn't just about enabling IT staff. The most important ingredient needed for digital transformation is "soul".

Of course, the first person who should be concerned about the digital transition is the management itself. Today, there are many founders and CEOs who want to make a digital transition in their organization, are ready to invest in it, and are investing in it. But they have one big flaw in common. They are calling to stop digitalization, but they are not participating in it themselves. I think it will be possible if the finances are decided and the plans are approved. Management should take the time to focus on what advantages the changes made with the help of information technology will bring to your business. In other words, it is biased to understand that making an organization strong in terms of information technology is only the work of IT companies, IT specialists, employees and entrepreneurs who work with IT every day. If you advertise and use it for marketing purposes, saying that you just have a nice program, ours is digital, it means that you have not understood what you need.

The first step to understanding this is to prioritize exactly which of the software and systems you want to implement will be needed by your business in the short, medium and long term. Maybe if you've increased your sales by using your Facebook page chatbot, you've already automated an important part of your sales. Furthermore, if your chatbot is connected to your CRM and website and starts to collect and analyze more detailed information about sales, then your digital transformation is successful. Otherwise, it is not optimal to aim to introduce all the technologies that are in vogue. Maybe some of them are useless for your business. For example, an organization that sells excavators and has less than 50 large customers does not need a mobile application for sales and payments.

In addition, the software and systems implemented vary in time to yield results. Maybe the software is not really needed yet, and even if you use it, you won't feel the benefits. Running the program required additional costs, unprecedented man-hours, and in short, new procedures. Results can be seen even after five years. That result can more than cover the losses of the past five years, bringing in a 200 percent return. However, it is not optimal to make a large investment today because of 200 percent profit. So, you need to decide according to your own characteristics today.

In a word, digital transition is a long-term journey that meets today's needs, learns to use the system at today's level, and determines tomorrow's needs and makes the next plan accordingly.

Who to work with?

After you've prioritized your digital needs, the next question is which IT company to partner with. Cooperation with any IT system supplier or development company is a long-term cooperation. This is because information technology is not something that can be separated after completing the work, receiving the money, it requires constant development, maintenance, and support, and in a sense, it works like a "living organism" that needs constant air and water.
Therefore, the organization that meets this requirement needs to be a reliable partner that will not disappear in the long run. It is necessary to pay attention to what the organization has been doing, what its history is, and what its experience is. If you don't know the organization well, you should try to work together on a small project first, not on the whole project. In our market, there are many cases where the director of a partner organization says, "Oh, I went abroad to learn," and because of this, the supplied system is left without any additional development and without a responsible owner. In such cases, other companies may be approached, but most software companies are not interested in doing additional development on systems developed by others.

Information technology is not something that can be done, paid for, and separated, it requires constant development, support, and in a sense, it works like a "living organism" that needs constant air and water.

After deciding who to cooperate with, the question "How to cooperate" will be asked. A long-term partnership with a developer means sharing business strategy and detailed process information. If it is necessary to develop the system and work with confidential information of the organization, a certain level of confidentiality agreement can be concluded. Without trust and open collaboration, important things will be missed, work will be delayed, and most importantly, it will be difficult to understand the purpose of the system implementation.

In order to ensure that the results of the developed and implemented system do not diverge from the business needs of the organization receiving the service, the management of the organization needs to pay attention to what problems the system is introducing and what time it is intended to solve. From the outset, there should be good agreement on what model development, future enhancements, and support will take. Doing so will prevent the risk of future cost increases and misunderstandings.

The ultimate goal of digital transformation is not to save paper

When organizations talk about the actual benefits of implementing a system, they calculate how much paper they saved, the environment saved, or people's time saved. This is just a talk about saving the costs that were used to do the work until today. But in fact, there are few organizations that introduce systems just to save paper.

In some cases, instead of saving time to introduce the system, the time spent by the person on the contrary increases relatively. So, depending on the purpose, saving registration time and saving paper is not the main goal of system implementation. It inevitably takes more time to start recording data that was not recorded. At first, the staff at the register are reluctant. But even if it doesn't save time, the logging system reduces the chance of errors. There may be few mistakes, but big mistakes can lead to big losses and sometimes even the loss of big customers. In other words, preventing potential errors is of great value, but difficult to measure in monetary terms.

In some cases, instead of saving time to introduce the system, the time spent by the person on the contrary increases relatively.

When a new person joins an organization that uses systems in their business operations, they quickly adapt to their work and begin to build productivity. The system also prevents the loss of important information such as some methods and calculations of the organization after the employee leaves the job. It is difficult to express all this in terms of money.

It is very important for an organization to have a culture of recording data that affects its operations. Information that is useful to the registry is generated. Informed and quantitative management decisions are made more rationally than ever before. A person with numbers can talk about increasing sales and hiring new people, not hypothetically.

Data is everywhere and there is plenty of it. The main thing is to cultivate a culture of development. One of the biggest factors here is that the data must be true and complete. For this to be the case, the records must be correct. Proper registration requires proper processes, standards, and some degree of control. Using misregistered data is more harmful than not using it. To be true and complete, you need to tie the correct records to your business processes.

Ultimately, digital transformation is a long-term journey that involves all aspects of your company: people, processes, strategy, structure, customers, and more. The digital transition will require management from you. Because this is the way of life and business of your business

This content Efficient Way (EWAY) was prepared in cooperation with the company. The company operates in the areas of software development, IT contract services, consulting services, and organizing virtual events.

Source link: https://business.mn/2022/05/06/baiguullagadaa-medeelliin-tehnologi-nevtruulehees-umnu-hariulah-yostoi-asuultuud/

Worked on the material: E. Enkhbayar, G. Davaadorj