Challenges and their Solutions to move from Manual to Digital working
Ever since the commencement of businesses into the industry of products and services, recording of the daily, monthly, and yearly proceedings and progression is a requirement for all of them. Every business has to record, classify and interpret its data into useful information and if there are no records of written data, in whatever form, a business cannot function because of unawareness of costs being incurred and the absence of tracking other managerial practices.
Manual Recording of Business
The first medium of storing data related to all transactions of the business from old times is by doing it on paper. This process is very inexpensive to operate but does require human calculation time to proceed for the purposes of obtaining complex values of statements related to cash, assets, liabilities, income, and expenses. It allows the handler of data to rectify any mistakes there and then because of no duplication of data. There also doesn’t exist any fear of the data getting corrupted because once it is written down and kept safe, it pertains to the needs of the business.
Digital Recording of Business
This medium of storing business data also refers to electronic storage or recording. Such a medium of recording involves computing devices having hard-drives or cloud services through the internet, the software’s running relevant programs, and relatively less human labor to operate them. Capturing information and making it accurately available for business needs is very convenient on this platform. Financial statements are also easy to generate and make decisions thereupon. Most businesses of large scale use the electronic medium of recording for their transactions because of the large number of resources involved in the processes. It automatically keeps compliance with certain tax regulations and doesn’t even hold up much space of storage.
Challenges of shifting from Manual to Digital
It was not easy to make a transition into the digital way of recording for the businesses which were using the conventional or classic methods for decades. However, the ones which had switched are now in much more ease than before because of less human capital involved in this role of recording, which is optimized for more useful activities. Some of the potential challenges that may be an obstacle for the businesses switching to this medium are as follows:
|Molding the Culture||Many businesses have their proficiencies in handling their customers or vendors face to face. If this tradition is replaced with digital recordings of sale and purchase via technology only, the interpersonal skills of the departments involved are affected. Apart from that, the employees which are initially using manual methods for recordings such as attendance, transaction receipts, and bills of materials, etc., have to mold themselves into sitting in offices and creating digital invoices for everything and getting them printed for use.|
|Technical Procedures||The employees which were first only required to read and write for the purposes of making recordings now have to be efficient in typing as well as handling software’s which have a lot of complex programs and functions installed inside of them. The user must be aware of the technology and also obtain reasonable results and afterward keep a backup for them as well. All of this procedure requires technical knowledge of how the computer connects with all of the activities of the business, which is to be learned.|
|The Suitable Technology||Most businesses face the difficulty of picking the correct quantity and the appropriate type of software for their businesses and if they do not make an informed decision, it might result in losses afterward. The major stakeholders of business have to choose from several companies that are providing the devices, which makes it more confusing.|
|Alignment of Tasks||Due to digital recordings, the proceedings of the business become really fast and departments are interlinked with ERP systems. This results in tasks being fulfilled much more quickly than before and if the assembly line is being slowed at one point due to a manual setup, the next departments will have to suffer. If the digital recording is installed at one point and not on the other, the efficient point of view of business is neglected as a whole.|
|Building the Infrastructure||One of the most crucial challenges that a business can face is the financial costs of setting up any innovation. Digital recording is a way forward in business but it certainly demands a massive amount of investment and, that too, periodically for maintenance of the setup.|
|Sensitivity of Data||In a digital system, the sensitivity of data is increased due to cyber-attacks. The data is volatile and vulnerable side by side because it can be hacked or accessed and manipulated. Written records cannot be tampered with and then made authentic. However, in a digital platform, no traces of changes can be seen if data is forged or bugged.|
|Adapting to Change||Digital integration demands change in objectives, the meaning of success, policies, organizational structure, and overall skill enhancement in the employees for using the digital procedures. Most of the management staff has to rethink how to conduct the processes and all of the employees have to be equipped or at least be aware of the usage of such digital ambiance, which is difficult at the start.|
Solutions to Challenges