Digitization of business processes

Digitization of business processes is the transfer of the implementation of processes in a company from paper, emails and loose files to the digital environment. Documents, data, approvals and communication are handled in IT systems, thanks to which information is available in one place, easy to search and forward.

Digitization is usually the first step to further improvements, as it organizes data and the flow of information. However, it does not change the logic of the process on its own. A scanned document sent by email for approval still requires manual transmission, but in digital form.

What is the digitization of processes?

In practice, it means replacing traditional tools with their digital counterparts. Paper documents are replaced by electronic files, and the exchange of attachments by e-mail and sheets circulating between departments by forms and a common database. Where documents still arrive in paper form, scanning and OCR, i.e. automatic reading of data from an image, are used. Handwritten signatures are replaced by an electronic signature, and approvals are transferred to the system, where a trace of each decision remains.

Common examples include:

a leave request submitted in an electronic form instead of on paper,
electronic employee documentation instead of binders,
contracts signed electronically,
invoices handled in electronic form,
reports are registered in the system instead of in a spreadsheet.

What does digitization of processes offer?

Digital documents and data can be found quickly instead of looking for them in binders or e-mail boxes, and they can be accessed by authorized people regardless of the place of work. The risk of losing or accidentally changing a document is reduced, because the system saves the history of changes and controls permissions. Data collected in one place is also the basis for analyses, for example, checking how long it takes to accept applications and at what stage they stop.

Digitization and related concepts

Digitization – in some sources, it means the transformation of information from analogue to digital form, e.g. scanning documents. In practice, both terms are sometimes used interchangeably, so it is worth checking the meaning in which they are used in a given text.
Business process automation – the next step in which the system not only stores data, but also performs tasks independently and directs work according to rules.
Digital transformation – the widest scope, including a change in the operating model of the entire organization, not just the way individual processes are implemented.