While most digital transformation projects are aimed at making internal workflows more efficient, it's important not to overlook their potential for having a positive impact on customers.

Rather than looking inwards when identifying opportunities for streamlining processes, increasing numbers of organisations are looking outwards. They are harnessing digital technologies and strategies to improve service levels and remove inefficient work practices.

 For example, a high-profile Australian insurance company recently implemented a claims processing solution designed to significantly reduce reliance on paper documents. More importantly for its customers, the company was able to slash the time required to process claims from more than 20 days to less than 10 - a 50% improvement.

Now, when a customer rings the company to check on the progress of a claim, staff can instantly access all their records and data which is stored in a single location. The customer can be quickly informed of the status of their claim and when a resolution is likely to be completed.

Meanwhile, a large financial planning business has undertaken a digital transformation project designed to allow better management of large volumes of paper records by converting them into digital form. The project has resulted in a significant improvement in customer satisfaction levels as queries can be handled much more quickly. Projects such as these typically enjoy a return-on-investment within a six to 12-month period.

Paper-heavy processes

Despite such positive examples, there are still many organisations that remain heavily reliant on inefficient, paper-based processes when dealing with customers. They may need customers to manually fill in paper forms with their details or require agreements and contracts to be physically signed and returned.

The costs associated with these laborious manual processes are significant. As well as the customer's time required to deal with them,  staff must also process large volumes of paper as they move through the company's workflows.

There are also costs associated with transportation and storage. A large organisation can process tonnes of paper in the course of a year which must be filed for short-term access and then transported to off-site storage for longer term retention. Should those documents be required in the future, the time and cost associated with retrieval can also be significant.

Transforming workflows

A successful digital transformation journey comprises a series of key steps. By following them, an organisation can boost customer service levels and also significantly improve internal workflows. The steps to follow are:

• Understand – The first step is to gain a thorough understanding of exactly what it is you are trying to achieve. How can customer-facing processes be improved? Where can inefficiencies be removed? How might existing workflows be streamlined? By consulting with all parties involved, it becomes possible to map business process and information flows. Each can be examined in the context of the organisation's long-term strategic goals and key performance indicators created to monitor progress.
   
• Improve – Once the strategy has been formulated, attention can then shift to designing a new information infrastructure. Consider using external consultants and experts who are able to recommend technologies that are the best fit for your organisation. Making the best investments at this stage will ensure long-term value is achieved.
   
• Transform – Working with your partner, deploy the selected technologies across the organisation. Take time to confirm they are streamlining workflows and improving customer service levels. This step should also involve the training of all staff to ensure they understand the new systems and how they can get the most value from them.
   
• Govern – With the new digital platform in place and operational, it's time to monitor the adoption of new business practices against the previously defined KPIs. The performance of new workflows should be monitored and any bottlenecks or inefficiencies identified for action.
   
• Optimise – Digital transformation is not a set-and-forget activity. All workflows and processes must be continually improved to ensure maximum value is obtained across the organisation. Obtain feedback from both staff and customers on what is working - and what isn't - and make any changes required.

Undertaking a digital transformation project can have a rapid and significant impact on an organisation and the way in which it serves its customers. Taking the time to assess workflows, deploy suitable technologies and then monitor progress will ensure maximum value is realised.

Damian Aivaliotis is Product & Marketing Manager Application Services at Ricoh Australia.