In recent years, the concept of “digital transformation” has become increasingly common in business communication, with everyone seemingly agreeing that this transformation is necessary and, ultimately, inevitable for companies. However, the concept is quite broad, prompting us to ask: what exactly is digital transformation, and what does it entail?
A general definition might be the following: digital transformation is the integration of digital technology into all areas of a business, using it to replace non-digital or manual processes with digitized ones or to upgrade older digital technology with newer solutions. The intended outcome is to streamline and automate business processes, and in some cases, to change the way business is conducted, as new opportunities may arise.
Digital transformation involves implementing business applications with a respectable track record – such as ERP, CRM, and BI systems – as well as newer technologies: cloud computing, artificial intelligence, mobile applications, IoT (Internet of Things), and more.
However, digital transformation means something different for every company; some industries are more suited to digitization, some companies have already invested in the process, while others are just starting out.
What is essential to know is that when planning a digital transformation, it should be done gradually, with a long-term strategy and a clear vision of the desired outcome. Prioritizing urgent needs and considering the interdependencies between various applications and technologies is also crucial.
Let’s take, for example, the hypothetical case of a company dealing with inventory and production processes but currently only equipped with an outdated inventory management application and an accounting program. Orders are placed via phone or email, and there’s no application to integrate the activities of all departments into a single database.
In this scenario, the first step in digital transformation would be implementing an ERP system, such as Dynamics 365 Business Central. This would provide a unified view of the business and ensure consistent application of business rules across the entire company.
Next, suppose that the company handles a large volume of orders from suppliers and customers, each containing numerous items. This makes order entry a time-consuming activity prone to human error. In this case, the next step in digital transformation would be introducing an EDI (Electronic Data Interchange) system to enable the electronic and automated exchange of documents (orders, invoices, delivery notes, etc.) with suppliers and customers.
Following this, the next priority would be the warehouse. For warehouse management, a barcode scanning solution that integrates seamlessly with the ERP system and doesn’t require significant hardware investment (e.g., working on regular mobile phones) has become essential. In such conditions, a system like Mobile WMS could be implemented.
Next, let’s assume the company produces and sells products that require complex documentation (technical drawings, user guides, etc.), which must be archived and cataloged for easy retrieval and use. In this case, a Document Capture solution like Continia would be most suitable.
Examples of digital transformation can go further:
- The production department could benefit from a visual production scheduler, such as Visual Production Scheduler, to assist in making quick decisions.
- The sales department might need better sales forecasts, which could be achieved using a Dynamics 365 Business Central extension that leverages artificial intelligence for predictions.
- Management could use a BI (Business Intelligence) solution for business analysis, Power BI would be suitable.
One can see that digital transformation is a gradual process that targets all areas of the business. It is ongoing, partly because technologies evolve rapidly, requiring companies to keep pace. The examples provided above emphasize well-established applications and technologies, but newer advancements (cloud computing, artificial intelligence, IoT) open new horizons and opportunities for companies ready to adopt these technologies swiftly.
From this perspective, the Microsoft Dynamics 365 Business Central ERP system is an optimal solution. Beyond the traditional functionalities offered by ERP systems, its cloud integration with other Microsoft products and technologies provides a gateway to the latest advancements, offering a competitive edge.
Elian Solutions is part of the Bittnet Group, active for over 15 years as an implementer of the Microsoft Dynamics 365 Business Central ERP system. With a team of over 70 employees and a portfolio of over 250 clients, Elian Solutions is one of the key Microsoft partners for ERP systems.
