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Home / ERP Blog 08.24.17 / ERP Best Practices / ERP and Digital Transformation – Realizing Value Through Business Process Improvement
08.24.17

ERP and Digital Transformation – Realizing Value Through Business Process Improvement

erp and digital transformationWe’re seeing the term “digital transformation” in the industry press lately, and naturally our attention turns to how this term relates to the manufacturing and distribution sector, and in particular how ERP enables digital transformation for companies within the sector.

Digital Transformation has been described by industry analysts as “the realignment or new investment in technology, business models and processes to drive value for customers and employees and more effectively compete in an ever-changing digital economy.”

When it comes to digital transformation in the manufacturing and distribution sectors, our ERP consultant team  has guided many organizations on a transformative journey to true business process improvement.  Like a digital transformation, the goal is to align the investment in enterprise technology to realize value through enhanced business performance.

Evolving Interest – ERP and Digital Transformation

As we consider the concept of ERP and digital transformation, it’s also useful to considers recent Harvard Business Review article entitled “How the Meaning of Digital Transformation Has Evolved”  

The article summarizes an HBR survey which polled 2,216 executives at companies with annual revenue of more than $500 million. The survey shows companies and executives increasingly embrace digital transformation – or in other words, leveraging investments in technologies and improved business processes — to drive value.

According to the survey, CEOs recognize how much their digital strategy influences business goals. Back in 2007, only 40% of CIOs were involved in strategic planning. Now, ten years later, CIOs are regarded as some of the most integral members of the C-Suite.

The surveyed executives say they look to digital, or technology initiatives primarily to increase revenue and reduce costs.

The article concludes that while management recognizes the importance of the digital transformation, technology has also accelerated at a breakneck speed, making it more difficult for businesses to keep up with the curve, much less stay ahead of it.

Key Elements of ERP and Digital Transformation

It’s our perspective that a key element of “digital transformation” in the manufacturing and distribution sector is the effective use of enterprise technology to fully streamline business processes. This can involve ERP services that help in the transformation.

Organizations we team with are led through a proven approach that defines the step-by-step activities necessary to maximize business potential and fully realize the benefits of technology investments. We see this as an opportunity for organizations to undergo  business process transformation to

  • Drive best-in-class process performance and entitlement
  • Promote an organizational culture that embraces change with a mindset for continuous improvement
  • Improve product quality, service delivery, and customer satisfaction performance
  • Activate more advanced tools, processes, and change for greater efficiency, decision confidence, and business success

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So when looking at a “digital transformation” or in other words, leveraging investments in technologies and improved business processes to drive value,  sustainable transformation requires a sound methodology, education and practice.

By allocating the right resources for true performance improvement, an organization is well on its way to continuous transformational change.  These concepts are key to keep in mind during ERP selection and implementation.

Contact the Ultra team for further insight.

 

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Categories: ERP Best Practices Tags: Business Process Improvement, digital transformation, ERP Manufacturing

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