What is the cost of not digitizing business processes?
In this article, Shay O-Connor, Solutions Manager at FlowForma, examines the ROI of construction software and the cost of not digitizing business processes.
If you’re lucky, investing in software and digitizing business processes – for example to improve the day-to-day running of an organization – can be a standard scenario where you compare solutions, look at the pros and cons , what is the impact on staff, customers and finally what is the return on investment, the ‘ROI’.
It can also be complicated, depending on how important the solution is to your business – is it mission-critical or just nice to have? Also, who gets involved can determine how well the selection and implementation process goes.
There may be a bias towards certain offers. Time the evaluation of the different solutions, bring together all the stakeholders for each demo and post-demo discussions and finally come to a consensus for the selection. Now you just need to pay for it and manage the implementation project.
This is a simplified example, but these steps in the selection process can deter organizations from making any decisions. The road to the future will have to start in the future. Take the subject of return on investment, which tends to be mostly evaluated in monetary terms, largely based on trends and estimates.
More sophisticated ROI calculations may also include the less tangible categories of improved efficiency, time savings, staff satisfaction, and eventual customer satisfaction. With all that in mind, sometimes the selection drags on. Other “immediate” needs take priority and the “New Horizon”, this IT initiative, is put on hold.
The impact of “doing nothing” on construction companies
Let’s say you’ve identified that job status visibility is poor and time/money spent calculations take days or even weeks to assemble and report.
The “lessons learned” of projects are not based on data, but perhaps on handwritten reports or, even worse, on verbal anecdotes. So you know you need to digitize those manual reports and communications to make things better, but the barriers described above mean you’re focusing on the next project and leaving innovation to “when we have time” – you do nothing.
Based on analysis of the “obvious” processes in organizations, the average efficiency waste is 36% (a minimum of 15% and a maximum of more than 60%).
So doing nothing maintains the wasted time and money that currently exists, which in itself is acceptable, as long as all of your peers also remain ineffective and doing nothing. Alas, this is not the case.
A growing number of businesses are poised to become more digitally efficient and can make decisions about their next project based on accurate, immediate data that improves their margins, leaving the ‘do nothings’ to continue to assemble spreadsheets and make assumptions about missing documents. Ongoing decisions during projects are based on outdated information and lack of visibility.
Expect early adoption speed bumps when integrating new processes
If you have such plans, take the initial pain of selection and commit to it. Give yourself a firm selection schedule and share it with suppliers, so that they meet your deadlines, then make a decision and live with it.
Ask the tough questions of price, professional services needs, project management, and more. Expect early adoption speed bumps; after all, you are changing the way people work and moving forward.
Take the first step today by taking a free 14-day trial of the FlowForma Process Automation tool.