In this blog, we will be discussing the Digital Process Automation definition, its benefits, and real-life examples and how to execute DPA in your organization.
Digital Process Automation Definition: Digital Process Automation which is also known as DPA is a tool that helps businesses automates their manual, time-consuming tasks and processes. One of the biggest benefits of digital process automation is that it saves businesses money by eliminating the need for an expensive human workforce.
In a world where businesses are dependent on digital systems to perform their day-to-day tasks, it is important for them to automate processes.
That is why digital automation technologies are very essential for organizations to execute daily routine tasks and become more productive while lowering operational costs at the same time.
So now, let’s get started with what digital process automation is and its complete guide. Definitely this blog will be very helpful for you before incorporating such automation technologies in your organization.
What is Digital Process Automation?
Digital process automation, like BPM, focuses on enhancing and modernizing organizational processes. Although it goes a little further, digital process automation enables your entire organization to develop apps and automate all of your business operations, providing customers with an engaging digital experience.
The main supporting technologies used by enterprises to manage processes and automation efforts within an organization are basic back-end integration, collaboration tools, and cloud-based architecture.
Digital process automation is increasingly deploying and utilizing comprehensive and real-time analytics. Continuous improvement, a key component of digital transformation and innovation, depends on improvements in artificial intelligence (AI) and machine learning (ML).
In order to accelerate their paths toward digital transformation, businesses were moving away from conventional business process management software, which led Forrester Research to develop the term “DPA” Digital Process Automation in 2017.
The reason DPA came into existence is that traditional business process management and business process automation technologies were occasionally seen as inelegant and difficult, while also needing experienced coders.
Since then, Forrester has divided digital process automation into two categories: DPA Deep and DPA Wide.
DPA Deep tools are the advancement of conventional BPMS tools into more agile low-code development tools that are simpler to set up in the cloud and incorporate with other cloud and business applications.
DPA Wide tools are significantly lighter, easier to use, and more affordable tools that are better suited for automating straightforward business activities. They are also available to a larger group of corporate users.
Digital Transformation
Enterprise process automation is essential for innovation and digital transformation. You might have the most attractive website, but if the steps that take place after a user clicks through, from order processing to delivery, fall short of that fantastic experience, the customer may not return to you again.
Therefore, enhancing client experiences and accomplishing digital transformation depends greatly on digital process automation. You just cannot attract or engage your customers without it.
Your company’s processes and workforce must both change to accommodate digitalization because they determine how effective your company is. Moreover, traditional procedures must become less standardized and more flexible and personalized to support multichannel consumer engagement. In addition to that, businesses must organize their complicated operations through automated processes in order to provide services based on automation.
As you go forward with the development of a digital business, low-code and process management solutions can meet all of your demands, help you make better decisions with quicker, more advanced actions, and automate the customer journey across teams and systems.
These systems manage your processes, offer highly customizable capabilities to satisfy all of your process automation demands, and fulfill the high technical requirements of mission-critical processes.
Digital Process Automation Benefits
The following are the benefits of automating digital processes:
1) Collaborate With Everyone in the Company
These days, it is difficult for developers to provide consistent customer experiences across digital channels because of technical barriers. Developers frequently have to hard code business logic onto every single channel, which leads to inconsistent consumer experiences and maintenance challenges.
With the use of digital process automation, developers may design user-friendly user interfaces for every customer interaction point that are also directly connected to corporate operations.
Digital process automation also enables IT and business teams to work together efficiently. When IT and business teams collaborate and share processes and their goals and procedures are coordinated, it results in a more flexible and responsive organization.
2) Better Customer Experience
Businesses can use digital process automation to expand on their investments in data, systems, and APIs to develop more sophisticated and user-friendly customer experiences. Additionally, Digital process automation’s integration capabilities enable continuous data flow across all channels, giving you the knowledge and insights you need to succeed.
3) Lowers down the Operational Expenses
Despite not being their primary goal, cost savings are nonetheless a focus for many DPA users. The charm of digital process automation is that cost savings and better client experiences go alongside each other. Customers frequently enjoy better and more transparent experiences as a result of cost-cutting efficiency.
4) Increase the Level of Adaptability
The concern and fear of having to replace traditional technologies are one of the biggest barriers to implementing digital transformation. To improve client experiences without having to give up what they already have, digital process automation technologies can encase old systems with a process-centric application layer that empowers manpower and boosts adaptability so they can improve client experiences.
5) DPA Promotes Innovation & Productivity
Employees at all levels of a company can concentrate on more creative tasks since digital process automation frees them from the complex job. Skilled professionals are especially benefited. In such digital automation scenarios, an employee now has time to consider the onboarding process and ways to enhance it rather than spending time educating a customer.
What Tasks Can Be Automated?
Digital automation can be used for any process that includes a trigger, data gathering, information transfer, and activity monitoring.
- There are two different kinds of triggers: automated and human. Think about submitting a request or experiencing an event in a CRM system.
- In order to gather data, forms are frequently filled out, but information can also be automatically pulled out of or processed from a system.
- Business rules and logic specify where information needs to be transferred next when flowing between individuals or systems.
- Processes can be monitored and evaluated for performance by tracking what occurs from beginning to end.
Digital Process Automation Examples
DPA is beneficial for the majority of organizational activities that involve direct human contact with clients or customers. The user experience can be enhanced by automating and digitizing the processes. Following are some examples of digital process automation in actual business contexts:
1) The Purchase Orders
Businesses usually deal with the regular and repeating operations of purchase orders. They frequently call for multiple permissions, which slows down the work and reduces productivity.
Transitions between approvals can be accelerated with DPA. The DPA software directs the request to the right individuals after a purchase order is submitted for approval.
Additionally, it automatically alerts the person who made the request whenever an action is taken. By doing this, the time wasted going through revisions that would normally be done manually is reduced considerably.
2) Client Onboarding
Organizing training or orientations, processing paperwork, and other procedures are all necessary for manual onboarding. Customers may become irritated if the onboarding process takes too long.
DPA can be used by businesses to automate the majority of the onboarding processes in order to avoid such circumstances. Eliminating barriers in the workflows enable quicker and more effective transitions between each stage. Additionally, it makes sure that the data is constantly correct and relevant.
3) Logistics
The most labor and time-intensive business operations are found in logistical organizations. Manually doing these repeated tasks, such as creating and collecting invoices, planning and monitoring shipments, obtaining proofs of delivery, and settling payment disputes, adds extra time to the process. They also frequently make mistakes and perform inefficiently, which can lead to significant losses.
To improve the customer experience, DPA can lower these errors and optimize operations. DPA enhances the visibility of order and shipment progress in addition to streamlining workflows. In the end, it enhances business growth and facilitates strengthening client relationships.
4) Approval of Credit and Loans
The approval of loans and credit is one corporate process that can greatly profit from DPA. When done manually, gathering information and evaluating a client’s credit history is a difficult operation that takes a lot of time and effort.
To provide improved efficiency, authenticity, accountability, and prompt approval, the lending process is automated and simplified with DPA. Automated credit monitoring and scoring help lending organizations to track the borrowers’ financial health while processing a bigger volume of loan applications.
The clients of the lending institutions also benefit from DPA’s features in loan and credit approval. Loan applications are handled more quickly and borrowers receive the finest offers available as the approval process becomes more effective.
5) Manufacturing
The industrial sector was one of the first to implement digital process automation, which has been around for many years. DPA is now commonly used in manufacturing to supervise inventory control, quality assurance, and production processes.
DPA enables manufacturers in increasing productivity by automating processes including staff scheduling, part tracking, and production data recording. Moreover, by offering real-time feedback on the production process, DPA can help minimize errors and enhance product quality.
Digital Process Automation Tools
Considering Forrester’s model of DPA Deep and DPA Wide is one method to approach DPA tools. We have discussed DPA Deep and DPA Wide early in this blog, but now let’s get into a practical way.
- DPA Deep Tools: DPA Deep tools are typically more appropriate for crafting lengthy processes. These are perfect for sectors like banking, insurance, and healthcare with strong process requirements since they frequently draw on conventional business process modeling approaches and case management capabilities.
- DPA Wide Tools: For the quick construction of automated process platforms, DPA Wide tools are preferable. These solutions include some IT governance skills, robust process modeling, and better coordination capabilities, and low-code tools that business users may use. Companies like AgilePoint, Axon Ivy, Creatio, JobRouter, K2, Newgen, Nintex, and Ultimus are among the top DPA Wide providers.
Why Digital Process Automation?
Every company wants to be more productive, efficient, and effective in its operations. With the digital revolution driving a new wave of automation, it is time to explore the technologies that enable organizations to digitize their most important processes.
Organizations can adopt a comprehensive strategy for automating business operations thanks to digital process automation, which gives them the flexibility and information they need. It makes it simpler to discover areas for improvement and to implement rapid, flexible changes, which are essential in today’s modern environment. Additionally, it also lets you to control the flow of data across your company.
The following are some of the fundamentals of digital process automation:
- Ensuring transparency throughout all processes
- Customer task automation
- Creating an environment that promotes collaboration
- Setting off reminders and notifications
Digital Process Automation V.S Robotic Process Automation
Robotic process automation (RPA) and digital process automation (DPA) have similar-sounding names, but RPA is more concerned with precise activities than with high-level business operations.
RPA is demonstrated by software that automatically fills out the necessary tax forms and scans spreadsheets for financial data.
And if we talk about DPA, it is more concerned with controlling the human component and the interaction of various business software applications. For instance, you might use dynamic rules to automate the invoice approval process and make sure that applications are always sent to the appropriate individual.
Digital Process Automation V.S Business Process Management
We have given a little overview of digital process automation V.S business process management earlier in this blog but now let’s get into more detail for your better understanding.
The same tools, expertise, and platform techniques are utilized by BPM and digital process automation. However, the main objectives of BPM were to reduce expenses and increase employee productivity by refining procedures that are typically located in back offices.
On the other hand, consumer experiences, digital transformation, and innovation are more important goals for digital process automation.
There are no doubts that BPM is still valuable, but digital process automation makes it possible to automate all of your organization’s operations from beginning to end. BPM primarily focuses on cost-saving back-office task optimization.
Digital process automation has a far wider scope and makes automation available across the entire organization. The best part is that not only the tech-literate, but anyone in the organization can benefit from this latest automation. That is the main reason Digital Process Automation is now widely used in several sectors of modern businesses.
How to Execute Digital Process Automation Effectively
You’ve discovered some of the benefits of digital automation processes and also seen some practical examples of it. Now you might be inclined to begin executing this technology in your own business. Here are some steps which you should follow if you want to implement DPA in your organization.
1) Recognize Inefficient Processes
Recognizing which processes to automate is the initial step in deploying digital process automation software properly.
You should be considered employees and consumers experiences, as they will play a significant role in your decision-making. Here you have to notice that do you receive complaints from customers about the time it takes to approve contracts? Which procedures do the team members who are actually performing the work believe are complicated or may use improvement?
These are the factors you should be focusing on before executing Digital process automation. After all, making your employees’ life easy and providing better client experiences are the two main objectives of a DPA process.
2) Design the Desired Workflow
You can proceed to the process mapping stage once you’ve decided on the operations you want to improve. Here in this stage, you illustrate how the current procedure appears from beginning to end. This includes various elements such as all activities, authorization, necessary paperwork, and more.
Then, try to visualize the workflow without unnecessary details. Wherever you can, try to eliminate repetitive and time-consuming activities.
Consider comparing invoice price points to the figures in your database as an example. Integrations can frequently automate this kind of data entry or verification.
3) Establish KPIs to Evaluate the Performance of Your DPA Initiative
In this stage, you should define your project’s objectives and key performance indicators. The objectives for automating digital processes include:
- Significant reduction in costs
- Minimal time spent by employees on repetitive work
- The incorporation of the necessary business apps
- A more rapid and smooth customer experience
Determine what matters most to your business, and then specify how you’ll evaluate success.
To determine the difference in costs and hours spent, you can conduct a performance review before and after the amendments. Moreover, to determine how customers and stakeholders are responding to the latest developments, you can survey both groups.
4) Monitor the Results and Make Changes if Necessary
Top Representatives frequently have a tendency to be highly confident once organizations engage in a digital transformation initiative. They’ve seen the evidence of how it can change their organization, and they’re prepared to start reaping the rewards.
The reality is you most likely won’t master a process on your first attempt. Don’t think your job is finished just because you observe advantages like quicker processing times or happy staff. Monitor the results in relation to your objectives and KPIs, and change the approach as necessary.
The objective of DPA is to fully automate and optimize your key business processes. You can’t simply expect that anything you implement the first time will be successful.
5) Automate and Enhance Other Processes As Well
When you’re satisfied with the way the business process operates and the client experience it provides, it’s better to step on and enhance other facets of your company.
As the workforce is already familiar with the concepts of automation and process optimization, it might frequently make sense to start in other relevant areas. That’s how slowly and gradually you must automate other processes as well to get the maximum benefits of Digital Process Automation.
Conclusion
Digital process automation can be extremely beneficial for businesses of all sizes. By automating repetitive and mundane tasks, businesses can free up their employees to focus on more important tasks that require human interaction and creativity.
In addition, digital process automation can help businesses to improve their efficiency and accuracy, as well as reduce costs. If you are considering implementing digital process automation in your business, there are a number of different software platforms that you can choose from. Do some research to find the best platform for your specific needs and see how it could help to transform your business operations.
DPA can also help businesses improve their customer service by providing faster and more accurate responses to customer inquiries. If you’re looking for a way to improve your business, DPA is definitely something you should consider.
FAQ
How can I begin implementing digital process automation?
The first step is to assess your business processes and identify which ones would benefit from automation. Once you’ve identified the processes you want to automate, you’ll need to determine what software and tools you’ll need to do so. After that, it’s simply a matter of implementing the automation and monitoring the results.
How will Digital Process Automation help my business?
Digital Process Automation will help your business by automating processes and tasks which will save you time and money. Additionally, it can facilitate better employee collaboration and communication.
How can I use Digital Process Automation to automate my business processes?
You can use Digital Process Automation to automate your business processes by creating workflows that automatically trigger actions based on specific events or conditions. For example, you could create a workflow that automatically sends a notification to your accountant when an invoice is generated, or that automatically creates a new customer record in your CRM system when someone signs up for your newsletter.
