What is Efficiency Theory in Digital Transformation?

What is Efficiency Theory in Digital Transformation? Its subject is a very important issue and companies need to think seriously on this issue and build the whole game on this rule. Digital transformation is inevitable now, if your potential customers have smartphones in their pockets and you want to communicate with these customers, then you should base your digital transformation on the efficiency rule.

What is Digital Transformation?

Digital transformation means changing your traditional way of doing business and moving these processes to digital environments. We can give the simplest example as follows: If you previously made your invoices through the printer and send the paper invoice to your customer by cargo; After performing digital transformation, you will be billing your invoices through an intermediary software and you will be able to send these invoices as pdf to their e-mail addresses as e-invoices, this is a digital transformation.

What is Productivity Theory?

When a resource is used in combination with other resources, it is to look at marginal efficiency to estimate its value. It is a theory that expresses the effect of an additional worker participating in production in an enterprise according to the Marginal Productivity Theory or Marginal Productivity of Labor, which is explained by economists. So how can you benefit from the efficiency theory in digital transformation.

Efficiency Based Digital Transformation

The basic logic of digital transformation is to be based on efficiency or to make the company efficient by reducing costs. We can explain the formula for this as follows.

Efficient Digital Transformation = Product + Workplace + Stock + Procedures + Workers + Managers / Output

In the above formula, an efficient digital transformation is measured by entering all the inputs required for a workplace and calculating the output as a result. If your input scores are 10 but your output score is 2, you should query this conversion. & Nbsp;

How Does a Company Be Efficient?

In the formula we explained above, if the inputs are too many and the results of these inputs are low, there is an inefficiency here. For example, 10 people work in a company; But 7 of these 10 people are managers. This is a negative input according to the formula. If there are 10 people working in a company and 7 people are managers, you can think how efficient it will be. This is the logic in efficiency theory in digital transformation. You set up an e-commerce software; but this software does not work or cannot provide the service you want, then it is not efficient.

According to What is Efficiency Determined?

Efficiency is not determined solely by manpower or whether a software is running. Efficiency is not a relative concept either. Efficiency is a mathematical result related to the achievement of the set goals. For example, you are setting up an e-invoice software infrastructure for your company and this software should issue 100 invoices a day; but you cannot achieve the target of invoicing with human power and you issue 30 invoices a day. This is definitely an inefficiency. In order to overcome this problem, if you remove the human effect in conversion, automatically issue invoices with direct sales and reach the target of 100 invoices, here is the efficiency theory in digital transformation.

The Rule of the Game in Digital Transformation

The rule of the game in digital transformation should be efficiency. If there is no efficiency, the concept of digital transformation will not have any meaning. As an example, why do we use electric vehicles; because they provide fuel consumption and do not pollute the environment. The construction of electric vehicles is actually a complete example of digital transformation. Digital transformation is not just about building a website or software. Digital transformation will take place wherever there is human life and will be based on efficiency theory.

To summarize

You should base your digital transformation strategies on efficiency rule. If you set up a good technology and CRM infrastructure and still people call you and force you to employ 10 customer representatives, there is a problem here. You should review your stages and processes, establish your digital transformation infrastructure and develop appropriate processes for yourself.

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