For decades, companies have used technology to do work faster, better, and cheaper than human labor. Fit for Growth transformations also take advantage of technology where possible, tapping the full power of digitization to increase productivity, improve quality, and build capabilities. This approach deploys technology in two stages. The first optimizes internal processes ranging from manufacturing to customer service and human resources, often in concert with other cost reduction levers. The second goes beyond the boundaries of the enterprise, using cutting-edge digital technologies to drive fundamental change by automating interactions with customers and suppliers, fully digitizing processes from end to end, and eliminating labor in all but the highest-value areas. Together, the two stages generate significant savings while positioning the company for more profitable growth.
What Is Digitization?
Digitization reduces costs throughout an organization, most obviously by automating manual processes from the factory floor to the back office. Beyond that, digital technology creates additional value by improving quality, accelerating production, and replacing manual interactions. No company can afford to forgo the potentially significant contribution of digitization to a cost transformation program.
In the first stage, digitization applies technology to internal processes. This can be as simple as creating a spreadsheet macro to automate ...