5 examples of business efficiency improvement | Explaining benefits such as productivity improvement and key points for successful implementation

"I'd like to know about cases where work was made more efficient."
“What kind of benefits will there be?”

You may have questions like these. There are many success stories of businesses that have streamlined their operations. For example, there are cases where operations were made more efficient by using IoT, RPA, AI-OCR, etc. (explanation of each tool is provided below).By streamlining operations, you can expect to reduce the burden and labor costs.

However, there are a few points to keep in mind when streamlining your work. By introducing tools while keeping these points in mind, you can increase your chances of success in streamlining your work.

Therefore, in this article, we will explain success stories, benefits, key points for successful implementation, and frequently asked questions about improving business efficiency. Please refer to it.

Use this as a reference for ideas! Success stories for improving business efficiency

Here we will introduce some success stories of business efficiency improvements.

• Success story of business efficiency improvement part 1 | IoT
• Successful example of business efficiency improvement part 2 | RPA
• Success story for improving work efficiency #3 | Remote work
• Success story for improving business efficiency #4 | Knowledge sharing
• Business Efficiency Success Case #5 | AI-OCR

Success story of business efficiency improvement part 1 | IoT

We have a case study in which we used IoT* to streamline our operations.

*IoT, translated as the Internet of Things, is a technology that enables home appliances, cars, buildings, etc. to connect to the Internet and collect and exchange data to create more convenient and efficient systems. This enables remote control, automation, real-time monitoring, etc.

[Business results]

1 Discovered abnormal values ​​in calves' ``signs of changes in physical condition'' and ``estimated movement tendency''
If it becomes possible to detect signs of deterioration in calf physical condition, early treatment can be started, which is expected to reduce the rate of attrition due to disease before calf shipment.

2 Development of a customizable location display application The development of a location display application has made it possible to observe calf behavior from a remote location. The application also allows you to customize drawings according to the needs of various industries.

Source: Focus Systems Corporation| Utilizing IoT positioning technology in Shiga Prefecture's near-future technology social implementation promotion project ~ Delivering more "Omi beef" to your table ~ (as of February 16, 2024)

If we can detect early signs that a calf's condition is deteriorating, we can begin treatment promptly. This is expected to effectively reduce the rate of calf wastage due to disease. In the case of a livestock farm of 100 cattle for meat production, an increase in shipment volume and management improvement equivalent to approximately 900,000 yen can be expected.

In addition, the development of a location display application has made it possible to monitor the behavior of calves from a remote location. This will eliminate the need to search for calves as in the past. This is expected to improve the efficiency of calf management work.

Successful example of business efficiency improvement part 2 | RPA

There are also cases where RPA* has been used to successfully improve operational efficiency.

*RPA is a technology that uses software robots to automate routine business processes in place of humans. It is mainly used for repetitive and simple tasks, and can be expected to improve efficiency, reduce costs, and reduce human errors.

In one local government, regarding the work of manually checking the consistency of documents and data, the work process of outsourced companies was inventoried and reviewed based on report content and performance, and some of the work was replaced by RPA, thereby reducing the number of outsourced man-hours. This has made it possible to reduce costs by reducing man-hours.

Source: Cabinet Secretariat Information and Communications Technology (IT) Strategy Office | RPA Introduction Practical Guidebook | Page 37 (as of February 16, 2024)

By replacing repetitive tasks that were previously performed manually with RPA, we have achieved automation and reduced the burden on human resources. Automation with RPA can reduce human error and improve work consistency and accuracy. This may improve data integrity and check quality. Human resources saved by automating tasks can be reallocated to core operations.

Success story for improving work efficiency #3 | Remote work

In some cases, remote work has made work more efficient.

Improving productivity and securing human resources

- Enables quick and accurate response to customers. (Sales position)

・By carrying out planned and concentrated work, it is possible to improve work efficiency. (Research and development positions, staff positions, sales positions, etc.)

- Flexible working styles also help prevent knowledgeable and experienced personnel from leaving the company and secure new personnel.

Office cost reduction

Reduce office paper, paper costs, commuting and transportation costs.

Ensuring business continuity (BCP)

It helps to quickly continue business operations in the event of an emergency disaster or pandemic (infectious disease outbreak).

Source: Ministry of Internal Affairs and Communications | Collection of telework practice examples learned from local companies ~ Efforts to introduce telework by small and medium-sized enterprises and small businesses ~ | Page 2 (as of February 16, 2024)

Sales staff can now respond to customer requests quickly and accurately. This not only improves work efficiency, but may also lead to increased customer satisfaction. For research staff, a work style that allows for planned and focused work can be expected to improve task efficiency and productivity. Creating an environment where you can concentrate on research and development may bring about great results.

Success story for improving business efficiency #4 | Knowledge sharing

There are also cases where business efficiency has been improved through knowledge sharing*.

*Knowledge sharing refers to processes and activities that promote the sharing of knowledge, experience, know-how, etc. Knowledge sharing strengthens the knowledge base across an organization, fostering innovation and improving problem-solving capabilities.

In order to improve the technical level of construction and design engineers at civil engineering sites and to prevent a decline in technical level due to a decrease in the number of site personnel, we have introduced a database of information on past civil engineering projects and technical information. We have also created a system where you can register your questions about construction and design on a bulletin board and receive advice from knowledgeable people.

Source: Ministry of Land, Infrastructure, Transport and Tourism, National Institute for Land and Infrastructure Management | Purpose and overview of knowledge management by private companies | Page 83 (as of February 16, 2023)

In this case study, the organization introduced a database and bulletin board system to prevent a decline in the level of technology due to a decrease in the number of field personnel. The ability to quickly obtain the necessary information and knowledge through a database or other system will save time. This will accelerate the decision-making process and make projects and tasks proceed more smoothly.

Business Efficiency Success Case #5 | AI-OCR

There are also cases where work efficiency has been improved by using AI-OCR*.

*AI-OCR is optical character recognition using artificial intelligence technology. Conventional OCR technology was limited to simple character recognition, but AI-OCR uses machine learning and deep learning, making it possible to perform highly accurate character recognition even for documents with complex handwritten characters and layouts. This enables automatic data entry and more efficient archiving.

-Adding the latest technology using AI to OCR (Optical Character Recognition), and using character recognition technology and machine learning to significantly improve the recognition rate of handwritten characters

- Continuing machine learning achieves 90% or more, whereas normal OCR is 50-70% (also leads to BPR such as unifying application form formats)

- Fully implemented in Minato City community bus ticket issuance application form

Combine with RPA to reduce 900 hours per year for one task

Source: Kanagawa Prefecture | “Minato City AI First Year” - Improving services for residents and creating a comfortable workplace through AI and RPA - Page 33 (as of February 16, 2024)

In this case, the combination of AI-OCR and RPA mentioned above automates business processes and achieves significant time savings.

First, AI-OCR is used to read the text information from handwritten application forms. The read information is then converted into digital text data. This conversion process puts the information on the application form in a format that can be handled by databases and systems.

The RPA then receives the converted text data and automatically enters the information into the necessary systems and databases. Because RPA automates operations based on defined rules, it eliminated the need for manual data entry, resulting in a reduction of 900 hours of work.

Explaining the benefits of streamlining business operations

Here we will explain the benefits of streamlining your operations.

• Can improve productivity
• Makes it easier for employees to work
• Reduce costs

Can improve productivity

You can improve productivity by streamlining your operations.This reduces inputs and ultimately increases productivity.

For example, in the manufacturing industry, manual inventory management and data entry tend to be time-consuming. Warehouses are large and the products are often huge. Manual data entry can also lead to errors and delays in information. In this state, it cannot be said that productivity is high.

However, by implementing software that automates the collection, analysis, and reporting of inventory data, you can monitor inventory levels in real time, predict product demand, automate the ordering process, and more. Automation speeds data collection and analysis.

Accurately understanding inventory levels and demand also allows for more efficient production planning. This reduces the risk of overstock and out-of-stock items, and may improve production line utilization rates.

And best of all, new value can be created by improving business efficiency. For example, the extra time gained by improving business efficiency can be used to develop new businesses and services, which can create new value.

Makes it easier for employees to work

Streamlining operations makes it easier for employees to work.Because it allows for faster decision-making.

For example, when developing software in-house or outsourcing, the development team, design team, marketing team, etc. each have different information. Therefore, in the past, meetings and email exchanges were necessary for each person to confirm, share, and make decisions. In this state, it takes too much time to keep up with the latest progress and changes. Even if there is something you want to do or should do, you cannot do it right away. As a result, project progress may be delayed.

However, by implementing a project management tool, you can centrally manage task assignments, progress status, and change history in real time. Depending on the tool, automatic updates may also be possible. Each team member can see the information they need at any time, allowing them to share information and make decisions quickly. This will help your projects and tasks progress more smoothly and make your work easier.

Additionally, as mentioned earlier, streamlining operations can reduce the number of hours required to complete the same amount of work. Employees will be able to reduce overtime and work on holidays, and can expect an improvement in their work-life balance. You may be able to expect a reduction in stress levels.

Reduce costs

You can reduce costs by streamlining your operations.This is because it reduces the amount of time required to achieve certain results.

For example, let’s say that in a customer service center, employees manually searched the customer database and checked customer history to respond to customer inquiries, a time-consuming process that took an average of 10 minutes per inquiry.

By implementing a customer management system, you will be able to automatically centrally manage and display customer inquiry history and purchase history. As a result, response time for customer inquiries could be reduced from an average of 10 minutes to 5 minutes. As a result, the number of inquiries that one employee can handle per hour can be significantly increased. This means that the labor costs required to process one case can be reduced. If you think about it on a yearly basis, this is a huge benefit.

Automation of tasks and standardization of processes also reduces human error, which is expected to reduce the cost of correcting errors.

Key points for successful implementation of business efficiency tools

Here we will explain the key points to successfully implement business efficiency tools.

• Clarify the purpose of business efficiency improvement
• Examine the best tools for each job
• Repeat verification and improvement

Clarify the purpose of business efficiency improvement

In order to successfully implement business efficiency tools, it is essential to clarify the purpose of business efficiency. By having a clear purpose, you can choose the work efficiency tool that best suits the goals you want to achieve. Not every tool will solve every problem, so it's important to choose the best tool for your purpose.

We recommend using a mind map to clarify your goals. A mind map is a visual tool that organizes information in a way that radiates out from a central idea. By mapping objectives, goals, related actions, resources, etc., it becomes easier to understand the overall picture. By visualizing it, it will be easier to understand the current situation and issues.

Examine the best tools for each job

In order to successfully introduce business efficiency tools, it is necessary to carefully examine the tools that are most suitable for each business.The most suitable tools for each job are mainly as follows:

The best tool for each job is different because the job content is completely different. For example, in accounting, accounting-related work will be the main focus, while in sales, the focus will be on customer relations. Naturally, the functionality required from the tool will also vary.

Also, even if the tools are of the same type, you need to be careful. This is because each tool has different characteristics as follows.

We tend to focus on features and cost, but there are other things to check. A comprehensive decision must be made, including scalability and security. Investigate and analyze the current state of each business, and examine the tools you really need.

When investigating each business, it is recommended to perform process mapping. Process mapping is a method of visually representing an organization's business processes. Diagramming the process steps, tasks, participants, and interactions between processes will help clarify the issue. It is also recommended that you interview the relevant parties at this time. Listening to opinions from the field may reveal other issues.

Then, pick up multiple tools that can solve the identified issues and get competitive estimates. This makes it easier to compare not only features and costs, but also convenience, making it easier to choose the best tool for your company. If you have any questions after checking the official website, etc., it is a good idea to ask questions at that time.

If you are still unable to make a decision after getting competitive quotes, it may be a good idea to try a free trial. By checking the actual usage experience, you can determine whether it is the best tool for your company. Please carefully examine it at this stage so that you do not regret your decision after implementation.

Repeat verification and improvement

In order to successfully implement business efficiency tools, it is important to repeatedly verify and improve them.Don't be satisfied with just introducing it; check whether you are able to improve business efficiency and reduce costs.

When performing verification, check the numbers that are directly linked to achieving your goals. For example, if the purpose of introducing a tool in a general office is to reduce costs, examples of things to be verified include the following.

After checking each number, get feedback from the field staff. It is important to check each number, but listening to the voices of the field staff can reveal blind spots. Not everything can be quantified, so listening is important.

If you find that improvements are necessary after analyzing quantitative and qualitative data, start by implementing small improvement measures. Rather than implementing large-scale changes all at once, it's best to implement small changes in stages and review and record their impact. This reduces risk and allows you to more accurately determine what works. Don't worry, let's make sure to improve.

Frequently asked questions when streamlining your business

Here, we will explain frequently asked questions when it comes to making your business more efficient.

• First of all, what is DX conversion?
• Please tell me about tools that help improve work efficiency.

First of all, what is DX conversion?

DX (digital transformation) is an initiative that uses digital technology to fundamentally transform the business models and business processes of companies and organizations, creating new value and increasing competitiveness.

When you say DX, you may tend to think of it as ``introducing IT tools to make business more efficient,'' but strictly speaking, it's a little different. It is true that introducing IT tools and streamlining business operations is part of DX, but it is not everything. DX is about rethinking corporate culture, relationships with customers, and even how to compete in the market and aiming for innovative reforms. Improving business efficiency is only a ``process leading up to change.''

Therefore, even if we were able to improve the efficiency of our operations by introducing tools, it is difficult to say that we were able to fully transition to DX. It can only be said that DX has been achieved after improving operational efficiency, transforming the corporate culture, improving relationships with customers, and establishing a competitive advantage. By this time, we may have built a foundation that will enable us to survive in the new digital age.

For more information on DX, please refer to the article below.
Improve business efficiency with DX! Explaining benefits such as reduced work time, implementation procedures, and examples

Please tell me about tools that help improve work efficiency.

Depending on the nature of your work, there are many tools that can improve efficiency.

• project management tools
• task management tools
• document management system
• customer management tools
• chat tools
• Accounting and financial management tools
• inventory management tools
• Human resources management tools
• Social Media Management Tools
• cloud storage service
• data analysis tools

The above are just a few examples, but by using these you can expect to improve work efficiency. However, as mentioned above, when implementing a tool, be sure to choose the tool that best suits your company. If you implement a tool that does not match your company's business content, processes, or terms of use, it will be difficult to improve work efficiency. Be sure to thoroughly test the tool before making your selection.

summary

So far, we have explained examples and benefits of improving business efficiency. Improving operational efficiency is an important initiative for companies. As explained in the example, streamlining operations has many benefits, such as optimizing business processes, saving time, and reducing costs.If you are facing any of these issues, we recommend that you work on improving the efficiency of your operations.

However, when selecting and implementing business efficiency tools, it is important to have a clear purpose and select the appropriate tools. By doing so, you will be able to maximize your effectiveness. If you have any concerns about improving operational efficiency, please contact us.