Modern technology can help companies bring their effectiveness to a new level, and those who do not take advantage of that possibility stay behind in terms of competition. But what does business process optimization mean, and why does it bring tangible results? Here’s our take on that issue.
Capitalistic logic enforces constant pursuit for optimization – there is no business growth once you stay in the same place in terms of productivity. With the development of technology, we get access to more and more tools that support optimization without investments in human resources. Based on automation techniques like machine learning and deep learning methods, these tools allow identifying the issues that affect the company’s productivity and solving them most effectively. But without a well-thought strategy, they can do more harm than good. The business process optimization comes to the rescue, providing you with methods to carry out a safe transformation.
What is business process optimization?
Speaking briefly, business process optimization is a strategy to maximize the company’s productivity through a set of improvements. Depending on their sector, size, business philosophy, business goals, and many other variables, they may cover different areas and processes. The cycle of business optimization can be divided into four phases: assessment, design, implementation, and maintenance. The first phase focuses on defining the current state by identifying gaps and inefficient processes, and the outcomes allow to design, implement and evaluate new, optimized processes.
Let’s use an example to illustrate what such a strategy could look like. The company X launched their large AI video recognition project, but they need to do additional mark-up since the algorithm is not bringing expected outcomes. To do so, they need to hire some freelancers that will do this work on short notice. However, the results of the recruitment process are disappointing. In addition, it takes a long time to exchange required documents since the cooperation is entirely remote. The company is looking for a way to optimize these processes. The business optimization, in this case, could focus on perfecting the HR procedures (for example, by using ATS systems) and introducing the electronic document flow. In the assessment phase, the company could also develop possible reasons behind the lack of effectiveness of their AI method.
Why is it worth implementing a business process optimization strategy?
Looking above, the question answers itself, but let’s articulates it: business process optimization can:
- simplify the operations
- lower costs
- reduce business risk
- improve the security of the processes and enhance their consistency
- improve customer satisfaction
Does business process optimization have to be digital?
Digital transformation is often promoted as an ultimate solution to all the issues encountered by the company, and it’s an essential element of a business process optimization strategy. Still, the truth is many companies waste their potential by picking unsuitable technologies just because of the hype or overlooking the importance of training.
Its worth underlying that business process optimization doesn’t equal business process automation. The AI-based tools can support your teams but cannot replace them. It’s essential to define what’s the actual purpose of introducing a particular technology, system, or new functionality within it and determine expected results to measure the outcomes of your business optimization strategy.
If you’re cooperating with an external development partner, it’s worth organizing the workshop during which you’ll join forces to:
- identify the potential areas for improvement
- calculate the ROI
- estimate necessary resources
- define potential risks and create a strategy for their reduction
If you’re doing things yourself, we encourage you to reach out for external support. A fresh perspective from the independent third party will help you look at your business optimization strategy differently and avoid unnecessary costs.
