Business process transformation is about using new technology to fundamentally change how processes are carried out.
It goes beyond minor improvements and aims to achieve significant gains in efficiency and productivity through digital solutions.
Artificial intelligence, project management software, business process management software, and accounting software are some key tools that enable business process transformation.
Learn about how Tallyfy helps transform business processes here.
Who is this article for?
- Companies looking to digitally transform their operations and business processes
- Organizations aiming to boost efficiency, productivity and profitability through process optimization
- Business leaders interested in leveraging new technologies like AI for process improvement
- Operations managers, process improvement specialists, digital transformation leaders
- IT managers evaluating software solutions for project management, process management and accounting
These roles are highly relevant to business process transformation as they are typically responsible for analyzing existing processes, identifying improvement opportunities, and driving the adoption of digital solutions to optimize workflows and boost performance. Transforming business processes requires close collaboration between operations, IT and business leadership.
What is business process transformation and why does it matter?
Business process transformation is the act of radically changing and optimizing business processes through the use of new technologies. Unlike incremental process improvement, transformation aims to fundamentally rethink how work gets done to achieve significant leaps in efficiency, speed and productivity.
Quote
There is nothing so useless as doing efficiently that which should not be done at all.
The key drivers for business process transformation include:
- Improving efficiency and reducing costs
- Enhancing customer experience and satisfaction
- Increasing agility and speed to market
- Gaining competitive advantage through innovation
- Enabling new business models and revenue streams
How does business process transformation work?
The business process transformation journey typically involves these key steps:
- Analyze existing processes: Map out current workflows, identify bottlenecks, redundancies and improvement opportunities. Techniques like value stream mapping can help.
- Rethink the process: Challenge existing ways of working. Could steps be eliminated, automated or done in parallel? Are there new technologies that could be applied? The goal is to redesign the process from the ground up.
- Select enabling technologies: Identify the software solutions and digital tools required to bring the new process to life. This could span project management, workflow automation, AI, mobile apps and more.
- Implement and iterate: Deploy the new process and tools, providing ample training and change management. Continuously monitor and optimize based on results and feedback.
Tip
Start with customer-facing or business-critical processes that have the greatest impact on revenue, costs or experience. Prioritize based on potential ROI.
What role does technology play in business process transformation?
Technology is the key enabler of business process transformation. Sharma (2015) presents a framework that shows how business goals can be translated into realistic transformation plans that leverage technology to yield tangible results.
Some of the critical technologies that power process transformation include:
- Workflow automation software: Tools like Tallyfy allow you to digitize processes, automate tasks and set up conditional workflows – eliminating manual steps and boosting efficiency.
- Artificial intelligence (AI) and machine learning: AI can automate complex decision-making, uncover process insights and predictions, and enable “intelligent automation”. Svetlana et al. (2022) note that AI contributes to business growth by creating a “virtual workforce” and stimulating innovation.
- Low-code platforms: These allow “citizen developers” to rapidly build process apps without deep technical skills – enabling more agile transformation.
- Process mining: Uses event log data to automatically discover process flows, variations and bottlenecks – providing a data-driven foundation for transformation.
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Tallyfy provided us with a modern, global platform to automate, maintain, and cascade content to a wide array of stakeholders, effectively eliminating the need for our teams to ask, “Where can I find the latest version of a playbook?”. We’re excited to continue our partnership with Tallyfy and welcome their growth-forward mindset as we deliver on our commitments to our stakeholders.
Jones Lang LaSalle (NYSE:JLL) is a Fortune 500 company with over 100,000 employees across 80 countries. See more quotes
What are some examples of business process transformation?
Let’s look at a few real-world examples of how companies have transformed their processes:
Ford’s accounts payable transformation
In the 1980s, Ford Motor Company’s accounts payable department had over 500 employees. In contrast, Mazda’s accounts payable department had only 5.
Ford discovered this massive inefficiency was due to cumbersome manual matching of order receipts, shipping receipts, and vendor invoices. They transformed the process by implementing a database to automatically match documents – reducing headcount by 75%.
Unilever’s AI-powered hiring
Consumer goods giant Unilever gets over 1 million job applications per year. Their old manual screening process was slow and prone to bias.
They transformed it using AI to analyze candidate videos, resumes and assessments – screening down to the top applicants in a fast, fair and efficient manner. This cut hiring time by 75% while increasing talent diversity.
Netflix’s API-driven services
To rapidly scale its streaming service globally, Netflix rebuilt its processes around reusable API (application programming interface) building blocks.
Instead of lengthy waterfall development cycles, it can recombine APIs in new ways to support emerging business needs. This allows Netflix to transform everything from content production to customer service with speed and agility.
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Senior Business Analyst – Voyager. See more quotes
What are the key success factors in business process transformation?
While the potential benefits are immense, business process transformation initiatives can also fail to deliver results. Pearce & Robbins (2008) argue that strategic transformation is the essential last step in a business turnaround – redirecting a company’s strategy for growth.
Some critical success factors include:
- Executive sponsorship: Transformation requires top-down support, funding and change management. Initiatives lacking C-suite buy-in tend to fail.
- Cross-functional collaboration: Processes often span multiple departments. Transformation teams need active participation from all stakeholders to succeed.
- User-centric design: Transformed processes must be intuitive and easy to follow for frontline workers. Involve users early and often in design and testing.
- Agile approach: Trying to transform too much too fast breeds complexity and resistance. Start small, iterate frequently and scale up.
- Continuous improvement: Transformation is a ongoing journey, not a one-time event. Establish mechanisms to monitor KPIs and identify optimization opportunities over time.
What are some risks and challenges in business process transformation?
- Lack of clear vision and strategy for the transformation initiative
- Resistance to change from employees comfortable with the status quo
- Trying to automate a bad process, rather than truly reimagining it
- Underestimating the time, budget and resources required for transformation
- Inadequate skills and expertise to leverage new digital technologies effectively
- Failing to establish KPIs and mechanisms to measure transformation success
- Security and compliance risks when digitizing sensitive processes and data
Tip
Establish a clear governance structure with executive sponsors, transformation leaders and cross-functional teams. Regular steering committee reviews are critical to keep large initiatives on track.
How can Tallyfy enable your business process transformation?
Explain it once – AI-driven documentation: Tallyfy uses AI to automatically generate process documentation as you build workflows – eliminating manual work and ensuring procedures are always up to date. This makes it easy to digitize and transform processes at scale.
Structure intake – go from standalone forms to trackable workflows: Transforming customer-facing processes like onboarding or support requires digitizing the intake process. Tallyfy allows you to rapidly build online forms that feed directly into automated workflows – eliminating manual data entry and ensuring smooth handoffs.
Real time tracking – track the status of a workflow without asking anyone: A key goal of process transformation is enhancing visibility and control. Tallyfy provides real-time dashboards to track the status, cycle times and bottlenecks in any process – enabling data-driven optimization.
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Tallyfy is a reliable way to delegate aDigital transformation and the adnd track tasks with confidence. It has taken the guesswork out of the equation and has helped our team focus on delivering a service within deadlines. Thank you for making my life as a business owner easier!
Physiotherapist & Director – Online Physio. See more quotes
The bottom line
Business process transformation is about leveraging the power of digital technologies to fundamentally rethink and optimize how work gets done. When executed well, it can unlock new levels of efficiency, agility and competitive advantage.
But transformation is also a challenging undertaking that requires strong executive alignment, cross-functional collaboration, and a willingness to disrupt the status quo. Choosing the right technology partners is critical to success.
Tallyfy is a user-friendly yet powerful platform that enables business process transformation through workflow automation, AI-assisted documentation, real-time analytics and more. To see how Tallyfy can help you digitally transform your operations, schedule a personalized demo today.
Why is Business Process Transformation Critical for Modern Companies?
In today’s fast-paced, highly competitive business environment, companies must continually evolve and optimize their operations to stay ahead. Business process transformation is a systematic approach to fundamentally rethinking how an organization’s workflows and procedures operate, with the goal of realizing dramatic improvements in performance metrics like productivity, cycle times, and quality (Sharma, 2015).
The need for business process transformation is more urgent than ever in the face of digital disruption. Legacy business processes designed for a pre-digital era can no longer keep pace. As Baiyere et al. (2020) argue, the dominant logics and assumptions of traditional business process management must be re-examined and updated for the realities of digitization. Clinging to old ways of working in the face of technological change is a recipe for losing ground to more agile competitors.
Fact
According to a 2021 survey by McKinsey, 64% of organizations stated that business process automation and digitization is a top priority, up from just 31% two years prior.
How Can Business Process Transformation Drive Dramatic Improvements?
A well-executed business process transformation initiative can yield massive benefits in key areas:
- Increased efficiency and productivity by streamlining workflows
- Faster cycle times and improved responsiveness to customers
- Higher quality and consistency by reducing errors and variability
- Lower costs by eliminating waste and manual effort
- Greater agility and flexibility to adapt to change
For example, Mahdiraji et al. (2020) describe how an Iranian financial securities company was able to eliminate nearly 70% of process waste by using a structured framework to rationalize and redesign their business-critical workflows. The result was being able to redirect scarce time and resources to higher-value work to grow the business.
But business process transformation shouldn’t stop once a crisis is averted. As Pearce & Robbins (2008) propose, strategic transformation should be the essential last step after a turnaround to reposition the company for growth, not just stabilization. Reengineering processes is an opportunity to cultivate new strengths and competitive advantages.
How Will Artificial Intelligence Accelerate Business Process Transformation?
The impact of artificial intelligence on the future of work cannot be overstated. AI has the potential to radically accelerate business process transformation in several key ways (Svetlana et al., 2022):
- Intelligent process automation to augment or replace human workers for routine tasks
- Enhancing the capabilities of existing workers to be more productive and make better decisions
- Generating insights from data to identify transformation opportunities and simulate their impact
- Enabling rapid experimentation and agile process changes based on real-time feedback
Forward-thinking companies are already using AI to transform their operations in pursuit of higher profitability and competitive advantage. As AI technologies continue to mature and become more accessible, laggards risk being left behind.
The time for business process transformation is now. But in an AI-powered future, the transformation will be constant. The companies that embrace AI to reimagine their processes will be the ones positioned to win.
Tallyfy Tango – A cheerful and alternative take
Meet Bob and Alice, two quirky characters who stumble upon the concept of business process transformation in the most unexpected way.
Bob: Hey Alice, did you hear about this new dance craze called the “Business Process Transformation”?
Alice: (laughing) What? That sounds like something straight out of a corporate handbook! What’s it all about?
Bob: Well, apparently it’s not a dance at all. It’s a way for companies to revamp their old, clunky processes and make them sleeker and more efficient.
Alice: (intrigued) Okay, I’m listening. How does it work?
Bob: Picture this – a company is like a rusty old car. Business process transformation is like giving that car a complete overhaul, from the engine to the paint job.
Alice: (chuckling) So instead of just fixing a few dents, they’re basically rebuilding the whole thing from scratch?
Bob: Exactly! And the best part is, once the transformation is complete, the company runs like a dream. Processes are streamlined, employees are happier, and customers are thrilled with the improved service.
Alice: Wow, who knew something with such a stuffy name could actually be so cool? It’s like a secret recipe for business success!
Bob: (grinning) Maybe we should start our own company and give this business process transformation thing a try.
Alice: (laughing) Sure, but only if we can come up with a catchier name for it. How about the “Tallyfy Tango”?
Bob: I love it! Let’s dance our way to business process perfection!
Related Questions
What is business process engineering with an example?
Business process engineering is the act of analyzing, designing, and implementing new business processes to improve efficiency and effectiveness. For example, a company might re-engineer their customer service process by implementing a new ticketing system, training staff on new procedures, and setting up automated email responses to common inquiries. The goal is to streamline the process, reduce costs, and improve the customer experience.
What are the 4 phases of transformation process?
The four key phases of a business transformation process are: 1) Assess the current state, which involves analyzing existing processes, identifying pain points and opportunities for improvement; 2) Design the future state, where you reimagine processes and create a blueprint for change; 3) Implement the changes, by executing the plan, training staff, and deploying new systems; and 4) Optimize and continuously improve, by measuring results, gathering feedback, and making ongoing adjustments to refine the processes.
What is an example of a business transformation process?
An example of a business transformation process is a retail company overhauling its supply chain to become more agile and responsive to customer demand. This might involve implementing new inventory management software, establishing real-time data sharing with suppliers, and cross-training staff to handle multiple roles. The transformation could enable the company to reduce stockouts, minimize excess inventory, and quickly pivot to meet changing market trends, ultimately boosting sales and customer satisfaction.
What are the steps in business transformation?
The key steps in a business transformation journey include: 1) Defining the vision and objectives for the transformation; 2) Assessing the current state of processes, systems, and organizational structure; 3) Engaging stakeholders to gather input and build buy-in; 4) Designing the future state, including new processes, roles, and technologies; 5) Developing a detailed implementation plan with timelines and milestones; 6) Executing the plan, with robust change management and communication; 7) Measuring results and key performance indicators; and 8) Continuously optimizing and improving based on data and feedback. Throughout the process, strong leadership and a focus on delivering value to customers are essential.
References and Editorial Perspectives
Baiyere, A., Salmela, H., & Tapanainen, T. (2020). Digital Transformation and the New Logics of Business Process Management. European Journal of Information Systems, 29, 238 – 259. https://doi.org/10.1080/0960085x.2020.1718007
Summary of this study
This study examines how the dominant logics and assumptions in business process management (BPM) need to evolve in the context of digital transformation. The authors argue that the traditional logics of process modeling, infrastructural alignment, and procedural actors are challenged in digital contexts. They propose new logics of light touch processes, infrastructural flexibility, and mindful actors to better align BPM with the realities of digital transformation.
Editor perspectives
At Tallyfy, we find this study highly relevant as it sheds light on how BPM practices and mindsets need to adapt in the digital age. The proposed new logics resonate with our philosophy of enabling agile, adaptable processes and empowering process participants. This research reinforces the importance of reimagining BPM for digital transformation success.
Mahdiraji, H., A., Hafeez, K., & Hajiagha, S., H., R. (2020). Business Process Transformation in Financial Market: A Hybrid BPM‐ELECTRE TRI for Redesigning a Securities Company in the Iranian Stock Market. Knowledge and Process Management, 27, 211 – 224. https://doi.org/10.1002/kpm.1632
Summary of this study
This case study demonstrates how a structured approach combining BPM and multi-criteria decision making methods can streamline processes in a securities company. By identifying and prioritizing critical processes, the company was able to eliminate waste and focus resources on high-impact areas. The study provides a practical framework for process rationalization and optimization in the financial sector.
Editor perspectives
We appreciate how this research illustrates the tangible benefits of a systematic BPM approach in a real-world setting. At Tallyfy, we advocate for a similar blend of process analysis, prioritization, and continuous improvement. The significant waste reduction and efficiency gains achieved in this case study align with the outcomes we strive to enable for our customers.
Pearce, J., A., & Robbins, D., K. (2008). Strategic Transformation as the Essential Last Step in the Process of Business Turnaround. Business Horizons, 51, 121 – 130. https://doi.org/10.1016/j.bushor.2007.11.003
Summary of this study
This article emphasizes the importance of strategic transformation as the final critical phase in business turnaround efforts. Beyond stabilizing finances, the authors argue that companies must fundamentally redirect their strategies to secure a competitive position in strong or emerging markets. The study provides valuable insights into how strategic transformation enables sustainable growth post-turnaround.
Editor perspectives
At Tallyfy, we recognize that process transformation is often intertwined with broader strategic shifts. This research highlights how aligning BPM initiatives with strategic objectives is crucial for lasting business success. We believe our platform can play a key role in operationalizing new strategies and driving the necessary process changes to support strategic transformation.
Sharma, C. (2015). Business Process Transformation. Management for Professionals, null, null – null. https://doi.org/10.1007/978-81-322-2349-8
Summary of this study
This book presents a comprehensive framework for business process transformation, bridging the gap between high-level business goals and tangible plans that deliver real results. It provides practical guidance on translating strategic objectives into executable process improvements, enabling organizations to achieve meaningful top-line and bottom-line impact through BPM.
Editor perspectives
We find this book highly relevant for Tallyfy users seeking to drive significant business outcomes through process transformation. The actionable framework aligns well with our approach of connecting strategic goals with day-to-day process execution. We believe the insights shared in this book can help our customers maximize the value they derive from our platform.
Svetlana, N., Norkina, A., Makar, S., Tatiana, G., & Medvedeva, O., E. (2022). Artificial Intelligence as a Driver of Business Process Transformation. Procedia Computer Science, 213, 276 – 284. https://doi.org/10.1016/j.procs.2022.11.067
Summary of this study
This article explores how artificial intelligence (AI) is transforming business processes globally. The authors highlight AI’s potential to create a virtual workforce, enhance human capital, stimulate innovation, and drive profitability. The study emphasizes the competitive advantages AI offers and its role in enabling digital transformation across industries and economies.
Editor perspectives
At Tallyfy, we are excited about the transformative potential of AI in BPM. We see AI as a powerful complement to our platform, enabling intelligent process automation, predictive analytics, and adaptive workflows. This research reinforces our belief that the future of BPM lies in harnessing AI to unlock new levels of efficiency, agility, and innovation.
Glossary of terms
Business Process Management (BPM)
A systematic approach to designing, executing, monitoring, and optimizing business processes to improve organizational efficiency, agility, and customer value delivery.
Digital Transformation
The strategic adoption of digital technologies to fundamentally change how an organization operates, delivers value to customers, and competes in the market.
Process Optimization
The practice of analyzing, streamlining, and continuously improving business processes to maximize efficiency, reduce waste, and enhance overall performance.
Strategic Alignment
The close linkage between an organization’s business processes and its overarching strategic objectives, ensuring that process improvements drive meaningful business outcomes.
Workflow Automation
The use of technology to automate repetitive, manual tasks within a business process, enabling faster, more accurate execution and freeing up human resources for higher-value activities.
