Digital Transformation Strategy in Food and Beverage: Where to Start?

Digital transformation strategy is more than just a buzzword; it has become an imperative for businesses to not just survive, but also thrive in the modern economy. The food and beverage industry is no exception to this trend. With the rapid pace of technological advancements and constantly evolving consumer demands, businesses operating in this sector must keep up with these changes to remain relevant and competitive.

This can include transforming their operational processes, adopting new technologies to enhance their customer experience, and exploring new ways to meet the ever-changing needs of their customers. By embracing digital transformation strategy, businesses can unlock new opportunities, improve their bottom line, and ultimately, secure their place in the market for years to come.

However, how do you implement a digital transformation strategy in your company? 

 

Digital Transformation Strategy in Food and Beverage: Where to Start?

1. Define Your Goals and Strategy
2. Evaluate Your Business Processes
3. Finding the Right Digital Transformation Partner

Step 1. Define Your Goals and Strategy

Digital Transformation Strategy in Food and Beverage: Where to Start?

Defining your goals and strategy is essential before embarking on any digital transformation project. What do you want to achieve through digital transformation? Is it to improve efficiency, reduce costs, or enhance the customer experience? Once you have a clear understanding of your goals, you can develop a strategy that aligns with them.

It is important to set a realistic plan from the start and ensure that everyone is on the same page. Additionally, establish methods of communication to provide feedback and keep everyone informed. Defining key performance indicators (KPIs) can also help track progress and ensure that goals are being achieved.

A common mistake to avoid is relying on third-party companies to develop your digital transformation strategy. No one knows your internal issues and problems better than you do. Therefore, it is best to evaluate your business processes with internal help. By being part of the project team, they can quickly provide feedback on what may make the process inefficient or add dissatisfaction to the experience.

Step 2. Evaluate Your Business Processes.

Digital Transformation Strategy in Food and Beverage: Where to Start?

A Digital transformation strategy is an ongoing process that requires a comprehensive evaluation of your current business processes. It’s not just about implementing new technology; it’s about using technology to improve your existing processes. By closely examining your current processes, you can identify inefficiencies or bottlenecks that could be improved with digitization. You can work with internal stakeholders, such as your team and colleagues, to ensure that any changes made will work effectively on a day-to-day basis.

In addition to identifying areas that could benefit from digitisation, you can also use this evaluation to identify areas of your business that could benefit from automation or optimisation. For example, you may find that certain manual tasks can be automated to save time and improve accuracy. Or, you may identify areas where data analysis can be used to optimise operations and improve decision-making.

Overall, evaluating your business processes is a critical step in achieving successful digital transformation. By taking a holistic approach and involving internal stakeholders, you can identify areas for improvement and implement changes that will drive greater efficiency and productivity in your business.

Step 3. Finding the Right Digital Transformation Partner.

Digital Transformation strategy in Food and Beverage: Where to Start?

Selecting the right partner for your digital transformation strategy project can be critical to its success. Therefore, invest time in researching potential partners as soon as you identify your goals and strategy. Start by looking at their website to get a feel for their services and areas of expertise. Then, consider speaking with their existing customers to better understand their experiences and satisfaction working with the partner.

Note that big digital transformation companies on the market do not always equate to successful transformation. Instead, search for software providers who have worked in the same industry as yours and know all your pain points. Small agencies can provide a better solution for your company and improve the processes you identified for digitisation.

Conclusion.

In conclusion, a digital transformation strategy is a necessary step for food and beverage companies to remain competitive and meet the ever-changing demands of consumers. To ensure a successful digital transformation project, it is important to define clear goals and strategies, evaluate current business processes, and select the right partner for the project. By taking these steps, companies can unlock new opportunities, improve their operational efficiency, and ultimately secure their place in the market for years to come.

The Digital Transformation journey is a long and tedious project. Many organisations are considering the change but are afraid to fail or find an incorrect software partner who will drain their resources and never bring any valuable results. Knowing these issues, we prepared a list of tips on how to find the best software company when it comes to Digital Transformation.

Before we go further, we need to understand what is Digital Transformation?

We see Digital Transformation as the process of using digital technologies to create new or modify existing, business processes, culture and customer experiences, to meet changing business and market requirements.

It is a “reimagining of business in the digital age”.

Put simply, it is about looking at what we want to do or are currently doing and seeking to improve that experience using digital technology.

And this is also the why – “seeking to improve”.

We should not do Digital Transformation just because we think we need to appear modern or because someone else is doing it, and we need to stay competitive. These can be valid reasons, but the primary goal of any Digital Transformation project should be to improve – whether that be our processes, our people, our customers, or our planet.

Let’s check these examples that are commonplace for most people nowadays:

– eCommerce – allowing buyers to browse and shop items any time, from anywhere
– Online banking – from day-to-day banking to applying for loans and mortgages, all without stepping foot in a branch
– Streaming services – be it music, TV shows or movies – are all instant and available for rental or purchase 

What are the main areas to pay attention to with Digital Transformation?

1. Do not do Digital Transformation yourself
2. Conduct research on software providers to find the best fit for your organisation
3. Engage with a few companies to understand their approach

These industries have all been disrupted by Digital Transformation. However, they always provide clear improvements for customers allowing them to get what they need from the comfort of their homes. Usually by giving more choice or lower-cost offerings than traditional methods.

It is important to highlight that many organisations have tried to pivot their processes to follow these trends and have failed. The global management consulting firm BCG found that 70% of all Digital Transformations either fail or don’t manage to reach all of their intended goals.

And one of the problems might not be clear to the naked eye, but many organisations do not select and evaluate the correct partners to assist with their Digital Transformation journey.

Do not do Digital Transformation yourself.

In some cases, organisations will try to do it themselves. This is often the wrong choice, as it can mean that you lose focus on what you are already doing daily, which can negatively impact your people and your customers. It also may mean that you try to upskill quickly in new technologies with no previous experience in the field. This means that best practices are usually not followed and can lead to an inefficient result of the resources you have available.

At Allsop, we, by no means, think a Digital Transformation partner should do it all for you either. Instead, we encourage our customers and their staff to upskill and learn as we work on a project together. What we found is often training is a key part of what we deliver, but we encourage it only under the right guidance.

Conduct research to find the best fit for your organisation.

In finding a partner, a lot of organisations will go to market, get quotes, shortlist potential partners, and then review the offerings and make a decision. This is normal, but often a few key steps are overlooked.

You should research potential Digital Transformation partners as early as possible in this process. This could be by reviewing their website to see what other organisations they have worked with and how similar they are to you. If they have only worked with large multinationals, then they may not be the best cultural fit for a micro-organisation; or if all of their customers are hotels, then they may not have experience in processes within a distribution business.

Similarly, look at the types of technology used in the projects they have done before. If they have a lot of eCommerce website experience and you have eCommerce as one of your goals – then they will likely be a better fit than someone who has lots of experience putting accounting systems in.

It is also good to speak to at least 1 or 2 of their existing customers and ask questions about how they find working with this company, why they selected them over others, and what post-project experience they have had with them. These are the questions that only someone else in your shoes can answer, and it will give you a feel for what the engagement might look like rather than just what the project being proposed will be made up of.

Try to find a small engagement to start with.

And when searching for a potential partner, try to find a small engagement to start with. This allows both you and the partner to get to know each other’s working styles, and iron out any uncertainty or issues early. It also means that should you or the partner realise that they are not best suited to meet your requirements, you are not committed to a large project and discovering this further down the track.

At Allsop, we engage on a Foundations project with all new customers, where we encourage design and proof-of-concept work on a project before any development or implementation. There is a tangible result at the end of the Foundations for the customer, but most importantly, it ensures we are both on the same page going into the next stage of the project. It also removes any doubt or unknown technical issues that could cause problems later, and it means there are no surprises when we kick off the main project.

In some cases, during the Foundations, we realise that some or all of what the customer needs is better provided by someone else. We signpost this to the customer, and every time it is the best for both of us. Why? We aren’t engaged on a project that we aren’t going to provide the best value on, and the customer can get a better solution from someone more suited. It is always worth asking a potential partner if you can engage similarly for your first project.

Therefore, when your company is ready to approach Digital Transformation, always remember to complete full research on a software provider. Sometimes companies go for a brand when in reality it is better to go for the offerings and find the best match to your business and end goals.

Customers are at the heart of any business. Therefore, companies go above and beyond to get positive feedback and improve customer service ratings. Hence, some companies employ more staff, others spend time and money on endless training, and only 35% of businesses implemented Digital Transformation in their workplace and already see improvement in Customer Service.

What is Digital Transformation, you may ask?

It can be defined as “the process of using digital technologies to create new, or modify existing, business processes, culture and customer experiences, to meet changing business and market requirements.”

It is a “reimagining of current business processes in the digital age”.

Put simply, it’s about looking at what you want to do or are currently doing, and seeking to improve that experience using digital technology.

And this is also the ‘why’ – “seeking to improve”.

You shouldn’t do Digital Transformation just because you think you need to appear modern, or because someone else is and you need to stay competitive. These can be valid reasons, but the primary goal of any Digital Transformation project should be to improve – whether that be your processes, your people, your customers, and our planet.

Another common mistake we see is when organisations treat Digital Transformation like a one-time project and stay focused on only the end goal they set out originally. Of course, keeping aligned to the end goal is important – but your industry, technology and the world around us are constantly evolving, and as such your goals should be evolving constantly too. Therefore, you need to consider these three tips to get the most out of Digital Transformation.

Digital Transformation is a long-term mindset.

Digital transformation is a long-term mindset, rather than a point project. If you break your goals down into smaller projects, you can then review at the end of each project what went well and what didn’t, and use this to improve your next one.

Review and re-evaluate your goals.

In some cases, through doing this review you might realise that the objectives you set out originally are no longer what you should be aiming for. This could be because you discover something has changed, or you realise there’s a better way to achieve the same end goal. Having these small projects allows you to pivot quickly and react to the changing world around you, without wasting time and resources on something that may become redundant or be inefficient.

Appoint champions of improvement in all areas.

In most projects of any type, there is a project manager who sees the project through to completion, and Digital Transformations are no different. However, with Digital Transformation projects, you also want to ensure you have a champion of improvement as part of the project team. Ideally, this is someone who understands the process that is undergoing Digital Transformation really well but can also fully see the benefit of making the improvements. This will differ from project to project depending on the area you’re looking at – but some examples we have seen of this are:

– A factory worker, who would rather spend time ensuring the machines on the production line is running optimally than filling in the paperwork
– A call centre operative, who would rather be on the phone with customers than typing in order details received via email or fax
– An HR officer, who would rather spend time interviewing and shortlisting candidates than chasing departments to get a new employee onboarded correctly and quickly

In all of these cases, it is the people who will get the benefit from the change day-to-day that have been the champions of improvement. They help those implementing the transformation understand the current or potential pain points. They also ensure that whatever the result is, it will work on a day-to-day basis for them and their colleagues. By being part of the project team, they can also quickly give feedback on what may make the process inefficient or add dissatisfaction to the experience. And because they fully see the long-term benefit, this will be honest feedback which will be invaluable to the wider team in ensuring success.

3 Processes to Automate in a Small Business

As a business owner of a small company, you may have limited resources and time to manage your operations. This makes it essential to automate your processes to increase efficiency, reduce errors and save time.

Now, we know what you are thinking. The topic of automation may seem too expensive and advanced. Especially with research from McKinsey showing that only 25% of small businesses automated their processes in 2019.

However, last year automation became more accessible and affordable for small businesses, with statistics showing that 88% of small businesses have automated their processes in 2022. 

You may ask why you need automation in the first place.

Reasons for automation:

1. Data accuracy.

Inaccurate data can lead to various problems, such as incorrect reports, missed opportunities, and unhappy customers. On the other hand, achieving 100% data accuracy can be challenging, especially when relying on manual work as it is prone to mistakes and typos, which can lead to undesirable consequences. However, you can forget about it by automating data entry in your small business.

Moreover, automating data entry can also help you grow your business. For example, one of our customers was able to increase its revenue by 60% without any additional headcount, thanks to order management. By automating their order processes, they were able to work faster and more accurately, which led to increased customer satisfaction and repeat business.

2. Time-saving.

Automating processes not only saves time, but also allows employees to work on more important tasks that require their attention. This can help businesses to optimise their workforce and increase productivity.

3. Transparency.

Transparency is a key aspect of any successful business. When you have clean business data, you can make informed decisions based on actual performance metrics. For instance, by utilising Business Intelligence tools, you can truly understand how your business is performing and identify areas that require improvement. Furthermore, with order management, you can access detailed reports at any time in just a few clicks, allowing you to stay on top of your business and make informed decisions that will help you achieve long-term success.

Now that we have identified the main reason behind automation, let’s discuss three critical processes that small businesses should consider automating to improve their operations and customer experience.

3 processes to automate for small businesses:

• Order management.
• Customer service.
• HR processes.

Order Management.

3 Processes to Automate in a Small Business.

Order management is one of the most critical processes for any small business. Automating the data collection and entry process can help reduce errors and improve efficiency. According to Zapier, small companies automate 38% of processes connected to data. It helps them to improve efficiency, data security and collaboration between teams.

With an automated order management system, small businesses can accept and fulfil customer orders quickly and accurately. They can also track the progress of orders, manage inventory, and generate detailed reports. This ensures that orders are delivered on time, customers are satisfied, and the business is profitable.

Customer service.

3 Processes to Automate in a Small Business.

Customer service is essential in any business, but it is especially critical for small ones. Prompt and qualified support is necessary to show commitment to customers. Therefore, automation of order processes, such as order entry, order processing stage and live delivery updates, is essential to provide better customer support in small businesses.

With an automated customer service system, small businesses can provide 24/7 support to their customers. They can handle queries, complaints, and feedback efficiently, ensuring that customers are satisfied with their experience.

For example, one of our customers delivers orders on a daily basis. With hundreds of drivers and a large number of trucks, it became impossible to keep track of all the information, resulting in lost orders or delayed deliveries. To improve their delivery experience, we implemented our Order Management platform, specifically the Delivery Updates feature.

Check how this tool works in our blog post here.

HR processes.

3 Processes to Automate in a Small Business.

Human resources (HR) processes can be time-consuming and overwhelming for small business owners, especially when recruiting someone new. The manual job advertisement, writing down all your notes from endless interviews and trying to catch up with other aspects of the business can take up valuable time.

HR Automation can help small businesses automate their recruiting and onboarding processes. They can receive all their candidates’ information in one place and automatically drill down to the talents they’re interested in. They can also invite candidates for an interview and create reports in a few clicks. The best part is that it’s an inclusive tool as candidates can leave information via voice technology.

Check how it works in the video below.

Conclusion.

No matter how big or small your business, automation of processes is essential in 2023. It can help to save time, reduce errors, and improve customer experience. By automating critical processes such as order management, customer service, and HR processes, small businesses can improve their operations and profitability.

At Allsop Software, we offer a free-of-charge processes audit to help small businesses identify areas of improvement and possible ROI after automating tedious tasks. Book a free call with us today to learn more about how automation can help your business.