Digitization of processes – what is it?

Digitizing processes is the use of digital technologies to change the way processes are carried out in an organization. It is not only about making documents and data exist in electronic form, but also about making sure that the entire workflow takes place in a digital environment: data is entered once, approvals take place in the system, and information is available to authorized people in one place.

This term is sometimes used in two meanings. In the narrower one, it means the transformation of information from analogue to digital form, e.g. scanning documents. In the broader term adopted in this term, it also includes a change in the process itself, which, thanks to technology, can be simpler and faster than on paper.

Stages of digitization of the process

Digitization is rarely a one-time step. Usually, the process goes through three levels in turn:

  • Digital recording – documents and data are put into electronic form, e.g. by scanning and OCR, i.e. automatic reading of text from an image. The process itself is still going on as usual.
  • Transfer of the process to the system – forms replace paper applications, approvals take place in the system, and electronic signature replaces handwritten signatures. The process is digital from start to finish.
  • Use of data and redesign of the process – data from the working process allows for analysis, e.g. checking how long it takes to accept and where things stop. The process can be simplified because it no longer has to replicate the old paper workflow.

Many companies stop at the first stage and treat digitization as scanning documents. Only the second and third levels change the way they work.

Examples of process digitization

This is clearly visible in the circulation of cost invoices. At the first stage, the paper invoice is scanned and its data is read automatically. At the second stage, the invoice goes to the system, where the responsible persons describe it substantively and accept it, and each decision is recorded. In the third stage, the data from the entire process shows which stages take the longest, which allows you to shorten the acceptance path.

The process of concluding contracts is similar. The project is prepared on the basis of a template, approved in the system, and then signed electronically. A scan of the contract sent by email to the other party would be only the first level of digitization.

Digitization vs. Digitalization and Automation

In practice, digitalization and digitization are sometimes used interchangeably, so it’s worth checking the specific context in which they’re used in a given text. Business process automation is the next step, in which the system not only stores data and manages the process but also independently performs tasks and directs work according to rules. Digital transformation, on the other hand, has the broadest scope, as it involves changing the operating model of the entire organization, not just the way selected processes are carried out.