The Philippine business landscape
In the Philippines, the competitive landscape is shaped significantly by the multitude of SMEs, constituting a staggering 99% of all businesses, that form the backbone of the economy. It isn’t a secret that the competition gets tighter every single day– enterprises strive to advance against each other while facing a myriad of challenges, ranging from inefficient paper-based processes to fragmented data management systems that can be solved with digital transformation.
Digital transformation is emerging as a key driver of success, offering a strategic approach to overcome obstacles and enhance operational efficiency. According Epson’s survey, 86% of SMEs identified digital technology adoption as the way to drive more efficient business processes and heighten customer experience. But why isn’t everyone adopting?
The SME challenges and needs
a. Paper-Based Processes
Many businesses in the Philippines still rely on manual, paper-based processes which leads to inefficiencies, errors, and increased operational costs.
As the business landscape evolves towards digital transformation, the reliance on manual and paper-centric processes emerges as a significant obstacle for companies striving to stay ahead of the competition. Understanding the implications of paper-based workflows is crucial for organizations. It could enhance efficiency, reduce costs, and foster innovation in an increasingly competitive marketplace.
Despite advancements in technology, many businesses in the Philippines still heavily depend on paper. Various operational tasks including documentation, invoicing, and approvals are just some of the paper-centric processes. With the time-consuming manual handling of paperworks, critical business processes are delayed which are also prone to errors and risks. Businesses are challenged with slower time-to-market, reduced customer experience, and increased vulnerability.
Paper-based processes also entail cost. According to Gartner, businesses spend 1% – 3% of their sales on printing costs in the office. In addition to the price of paper, there is also an increased operational costs, such as storage and document retrieval
b. Data Fragmentation
Siloed data across various departments hinders a holistic view of business operations. It limits strategic decision-making capabilities, impedes collaboration, and hinders the flow of critical business information.
Data has become a cornerstone of modern business operations, influencing decision-making and strategic planning. However, the lack of integration in data management poses an obstacle to organizations aiming to stay ahead of the competition.
Disconnected databases and applications contribute to data redundancy, inconsistency, and inefficiencies in data retrieval and analysis. Siloed data contribute to delays in responding to market changes, customer demands, and competitive threats. Disparate data sources often lead to manual data reconciliation, consuming valuable time and resources, and posing increased operational costs from redundant data storage and maintenance across various systems.
Data fragmentation leads to incomplete and isolated insights, hindering the ability of decision-makers to formulate well-informed strategies.
c. Workflow Inefficiencies
Cumbersome and disjointed workflows contribute to delays in processes, reducing overall productivity and responsiveness to market demands.
Efficient workflows are the lifeblood of any successful organization, ensuring smooth operations, timely deliverables, and effective collaboration. However, in the context of the Philippines’ competitive business environment, the prevalence of workflow inefficiencies presents a considerable challenge.
Workflow inefficiencies manifest as bottlenecks, delays, and redundancies in the processes that govern daily operations such as cumbersome approval processes and manual handovers due to lack of automation. It also increases lead times, delaying the delivery of products or services to customers and hindering time-to-market. Rigid and inflexible workflows lead to difficulty in adapting to changing market conditions and customer demands.
Recognizing the impact of inefficient processes and implementing strategies for optimization are crucial steps in overcoming this challenge.
d. Revenue Leakage: Financial losses due to inefficiencies and inadequate revenue management.
Revenue leakage, the unnoticed seepage of potential income from an organization, can erode profitability and hinder long-term sustainability. Understanding the various facets of revenue leakage is crucial in fortifying financial foundations and staying ahead of the competition.
A spectrum of factors, including billing errors, double billing, incorrect pricing, uncollected revenue, inefficiencies in revenue management processes, inadequate monitoring, and control mechanisms, encompass revenue leakage leading to financial losses that can compromise a company’s competitive position.
Revenue leakage directly affects the bottom line, leading to decreased profitability and limiting the resources available for growth and innovation.
The solution and digital transformation opportunities
a. From Paper-Based to Paperless: Embracing digital transformation is adopting solutions like mobile forms, is pivotal for organizations seeking to overcome the challenges posed by paper-based processes.
But wouldn’t it cost you more because you have to train your employees on how to use the digital tool? The answer is no. DataHyv mobile forms are so user-friendly that you won’t notice its difference from the actual paper form your employees are used to. The only difference is that mobile forms are more efficient to use than paper forms.
You also don’t have to worry about the cost of an extensive period of development because this won’t take too much! From the average eight-month development period, DataHyv can provide you with the mobile form in only two weeks!
b. Siloed-Free Processes: Implement an integrated data platform that consolidates information from diverse sources, providing a unified view of business operations.
From the top to bottom management level, the DataHyv platform provides an overall view of business performance and makes report generation faster, easier, and better! It allows you to have access to business operations wherever and whenever you wish to.
But you already have an existing ERP system. That isn’t a problem because our platform can be integrated with your existing ERP. DataHyv aims to provide you with a single source of truth from your data, allowing you to make improved business decisions.
c. Efficient and Automated Workflow: Implement automation tools to identify bottlenecks and inefficiencies, reducing manual intervention, and accelerating workflows.
DataHyv’s end-to-end solution will smoothly take you from the beginning of the business process until the last phase in just a single platform, promoting increased efficiency and productivity while reducing time spent on non-strategic tasks.
Stop slowing down your business by letting your employees sift through files to track aspects that need improvement. Now, you can easily identify bottlenecks through a root cause analysis in just a few clicks!
d. Filling the gaps to stop the leaks: Leveraging data analytics tools aids in identifying irregularities and patterns, minimizing errors, and enhancing accuracy.
Have you been spending too much time thinking about why your revenue didn’t amount to what you’re expecting it to be? Looking for what went wrong would surely take a lot of your time. But it shouldn’t be that way!
DataHyv platform allows users to easily identify revenue leaks, helping close gaps, and foster revenue generation.
The winning game plan of digital transformation
By streamlining workflows through automation, optimization, and technology adoption, enterprises can enhance their agility, responsiveness, and overall competitive position in the dynamic business landscape.
Digital transformation is not just a technological shift but a strategic imperative for businesses. The Philippine government’s push towards digitalization has resulted in a 30% increase in the adoption of digital technologies by businesses.
By embracing paperless processes, consolidating data, eliminating silos, streamlining workflows, and addressing revenue leakage, SMEs can position themselves to navigate the challenges of the modern business landscape and achieve sustainable growth.