Digital Transformation: A Guide for Modern Businesses

• Digital transformation is the process of converting physical files and processes into digital ones, and adding structure to existing unstructured data. Successful transformations can save organizations time and money, provide them with deeper insight into their data, and improve the overall customer experience.
• Crafting a digital transformation strategy can help organizations transition to an all-digital infrastructure. It’s important to achieve executive buy-in, define KPIs, and start with a pilot program to maximize the chances of success.
• A digital transformation framework gives teams a structure for how to accomplish goals. They must find the right people to manage the project, find tools like document scanners and software programs, and develop the processes to use those tools effectively.
• The impacts of digital transformations can be immediate and immense, boosting employee productivity and growing revenue. Industries like healthcare, manufacturing, and even restaurants have all experienced the benefits of a digital transformation.

Digital transformation: An overview

Before transforming your organization, it helps to understand what the process looks like. Essentially, a digital transformation converts physical or analog workflows into digital ones. It also takes unstructured data, like images, audio files, and emails, and adds structure for easy searchability and instant accessibility.

One practical example of digital transformation could be an overhaul of an organization’s record intake process. Currently, the analog process may rely on manually gathering data from paper documentation, with customers filling out their forms by hand. Once completed, an employee then types the data into their computer by hand and then stores the file in a nearby file cabinet.

This process can create several roadblocks to a streamlined workflow:

• Handwriting takes longer to create than typed text, creating bottlenecks during the intake process. Handwritten data can also be difficult to read, potentially leading to confusion or misunderstandings when employees need to access that information.
• The process of entering this data into a computerized database essentially doubles the amount of work required to get information where it is most useful. This process also increases the possibility of inaccuracies entering the workflow due to human error.
• Physical documents can be easily lost or destroyed, making information more challenging to secure. Stacks of old documents also take up an enormous amount of space, leading to logistical concerns if your organization needs to store a hefty backlog of data.

Meanwhile, an effective transformation of this process would streamline the entire process.

• First, the organization would create a digital intake form. Customers could fill out the form online at their leisure, or in person at a designated workstation.
• Rather than relying on manual reentry, the digital form would then automatically transfer that information into a digital record-keeping system for easy access.
• The resulting digital process means shorter wait times before appointments, a reduction in time spent copying data into digital systems, and increased accuracy in data entry, resulting in more reliable information.

This process shaves off significant time and effort required to gather this essential data while improving accuracy and security.

Important elements of digital transformation

• Digitization is the process of converting individual analog files into digital counterparts. For example, you could scan your incoming physical mail and upload the files to a central database.
• Digitalization involves converting entire processes. Continuing the previous example, you could create a daily process for mailroom employees to open and digitize incoming messages. This process would include automation to ensure files are stored where needed, and quality control steps to reduce errors.
• Once an organization converts enough of its files and processes into a digital format, it has undergone a digital transformation and can now reap the benefits of automated, secured digital processes. A digitally-transformed mailroom would have processes that allow people to send digital copies of important documents in addition to physical copies. It would also have a team capable of scanning incoming mail and turning it into digital files, complete with proper naming and dating conventions to keep them organized. Once mail is scanned, automated processes sort files into the correct folders and send an email to the relevant employee so they can get to the information they need — no manual intervention necessary.

The benefits of digital transformation

• Reduced costs: When done right, a digital transformation can save your organization a significant amount of money. Streamlined processes mean your employees will be more efficient at their jobs and avoid costly mistakes that would otherwise take time and resources to correct.
• Improved customer service: Digitized information can be more accessible to employees and customers. Your organization will be able to respond to customer needs faster and more reliably. Plus, your customers will be able to access the information they need when they need it.
• Better data insights: When all of your information is available digitally, it can work that much harder for you. AI and machine learning-powered analytics tools may allow you to discover insights into customer histories and long-term trends. Deeper analysis of a wider variety of data will give you the context you need to make more informed decisions.

Read more about the basics in What Is Digital Transformation? A Beginner's Explainer.

Once you’ve developed your transformation strategy, you need a framework to help you see it through to the end. This framework will allow you to design a transformation infrastructure with the best performance once everything’s up and running, while helping you overcome old habits.

Three keys to creating a successful digital transformation framework

• The people who monitor the digital transformation process through every step. They should work with key stakeholders to reduce the likelihood of red tape impeding progress.
• A process that includes workflow meetings to keep stakeholders up to date. Use this time to answer tough questions about how the transition will impact day-to-day operations.
• The tools needed to track progress. These include survey tools to gauge employee sentiment. You can also use value capture models to provide concrete results of digital transformation outcomes.

How to manage change in your workplace

• Designate digital transformation role models: People are more likely to adopt new ideas or technology if they see people they trust doing the same. Find eager individuals, whether they’re members of leadership or coworkers, then give them space to instruct and inform others about the digital transformation process.
• Give employees opportunities to learn: When your organization offers opportunities to learn about new technologies or processes in a safe and blame-free zone, employees are more likely to build confidence in their skills.
• Reinforce positive results: Congratulate employees who take a shine to new processes. Use incentives to encourage them to help others to do the same, creating a positive feedback loop pointed toward your end goals.

Read How to Build a Digital Transformation Framework That Works to discover more ways to keep your transformation project on track.

Organizations that undergo a digital transformation can see massive gains in process efficiency and on their bottom line. According to researchers at MIT, organizations that make the digital leap see average revenue growth nearly 20 percentage points higher than industry averages. Here are just a few industries that have successfully experienced a digital revolution, as well as recommended tools to help your organization do the same.

Industries experiencing a digital revolution

• Dining: The entire food supply chain has undergone a significant transformation over the past decade. Growers, farms, and delivery companies rely on digital calendars and GPS to increase the shelf life of restaurant staples. Mobile apps have even transformed how people get food delivered to their houses.
• Manufacturing: Internet-of-Things communication keeps automated assembly line production processes humming. They alert teams when machines are ready for repair or are operating less efficiently. Digital transformation also makes it easier to present important documents like purchase orders and safety notices.
• Healthcare: Hospitals and providers have been laboriously converting their records into digital files while transforming the processes they use to collect new patient data. Now, doctors and nurses have instant access to patient histories, examination notes, and lab results to make more informed decisions. Patients also enjoy these benefits in the form of convenient online intake forms, medication refill requests, and telehealth appointments.

Tools for maximizing the impact of your digital transformation

• Mobile-ready devices like smartphones and laptops enable employees to take their work anywhere — in the office, at home, or on the road.
• Cloud services offer centralized networking and data hosting for businesses.
• Digital scanners convert physical documents and images into digital files, which can then be uploaded to the cloud and accessed anywhere.

Want to learn more about how your organization can leverage its digital transformation? Read Industries Being Reshaped by Digital Transformation: 7 Examples and Digital Transformation Services and Solutions: How to Find the Best Fit.

Join the digital transformation

If you’re ready to make the leap into a digital future, Ricoh is here to help. We’ve spent decades helping organizations digitize their workflows through our fi and SP series of scanners and our network of third-party technology partners. Together, we’ve helped businesses build a solid foundation to navigate the challenges of the 21st century while setting them up for success in the years to come.

Want to learn how a digital transformation can improve your organization's workflows? Contact one of our experts today, and we’ll find a solution that meets your unique needs.

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