[Blog Article | Reading Time: 2 mins] More than ever before, today’s technical tools are helping run businesses. Thanks to digitization, management has insight into all corporate data. Thus, it has a direct influence on almost all planning and control processes.
While digitization has long since become the norm in our private lives, businesses have been lagging behind in many areas. We order in online shops in the evenings, and on weekends track our parcels to our front door. In the same way, we have long since replaced the classic, complicated folded street map with an app and manage our bank account online. In our business world, on the other hand, we still have to do a lot of time-consuming work, due to the dissociation from the digital world.
Excluded from digitization
One of the processes that many view as the “shadow world” of digitization is the company-wide planning of investments. In other words, querying investment projects in plants, divisions or companies and approving these projects. In order to plan investments, solutions based on the Microsoft Excel spreadsheet program are used in many places, and in some places paper printouts are actually used. However, why has digitization not yet covered investment planning?
Digitization mainly takes place where (1) uniform processes are encountered and (2) processes are frequently run, and (3) the roles of the users are as uncomplicated as possible. These three aspects ensure that the effort, complexity and relevance of digitization are in healthy proportion to each other. Unfortunately, these three points do not apply to investment planning:
- The processes for planning Capexes are completely different from company to company. They often differ from area to area even within a company.
- The planning of investments “only” once a year is a nuisance for everyone involved. This time becomes an ordeal and requires an incredible amount of resources. But after two to three months the end is in sight.
- In order to plan the Capexes of a company, many employees are involved (usually between 40 and 300). They can be grouped into groups with similar tasks, but many participants have been granted special rights over the years that they no longer want to do without.
Achieving a lot with little
Year after year, investment planning falls through the cracks when it comes to digitization. The resulting pain is accepted. Unfortunately, this burden is placed on the backs of employees in controlling or purchasing – depending on where the topic is located. Their work can be made much easier with just a few targeted steps. Imagine that those involved would be looking forward to planning investments in the future, because thanks to digitization it is possible so quickly and the processes are so clearly defined. Our blog series ‘CapEx Planning’ will show you how to get there.