Digital Transformation with FileMaker

“Digital Transformation” is an oft used buzz word at the moment, but what is Digital Transformation, does it apply to small-medium businesses in New Zealand and Australia, and what part can the Claris FileMaker platform play in Digital Transformation?

What is Digital Transformation

When I set out to write this article, I started by doing some research on what exactly digital transformation is. One podcast and several hours of reading later, this is what I learnt.

As is common in the information technology (IT) field, there are many different views and opinions about what exactly Digital Transformation is. One of the best descriptions I found comes from an article on CIO.com that describes digital transformation as:

“...a catchall term for describing the implementation of new technologies, talent, and processes to improve business operations and satisfy customers…”

Other views focus more on the adoption of modern cloud technologies, or more radical digital disruption, such as Uber’s disruption of the taxi industry, or Netflix’s disruption on the video rental market.

In the context of small-medium businesses in New Zealand and Australia, such radical market disruption would be the exception. Instead, I see there being two main areas of so-called Digital Transformation that apply: business process optimisation & automation and digital customer experience. Let’s talk about these two areas in some more detail.

Digital Customer Experience

Digital customer experience is all about how you engage with your customers digitally (read, online). The pandemic and lockdown pushed many traditional “bricks and mortar” businesses into the online world through necessity. Engaging with your customers online can have multiple benefits, which I feel are best illustrated with some examples.

A participant in a podcast I listened to gave an example of a good digital customer experience. His air conditioner had broken down and he was needing to organise a repair. He searched online (Googled) for a local repair company, and clicked on one of the paid listings at the top of the search. On the company’s website, he was able to follow an easy process to book a repair person, picking a date and time slot that suited. On the day, the time came and he got a notification to his phone saying who the service technician was and that they were 10 minutes away. They arrived, repaired the unit, and he paid the bill online. He commented that the whole experience was so seamless and completely different to what he’d expected (we all know how “challenging” organising home repairs can be), that he vowed to always go back to this business when he next needs their service.

This digital customer experience was so good that it created instant customer loyalty. There’s a good chance that it’ll also breed positive word of mouth - someone likely need only mention that they need their air conditioner services to be told how good their experience with this company was. Looking from the other side of the coin, this customer experience also streamlined the business’ operations and likely reduced their overhead costs. They didn’t need to have someone answer the phone, take down the customer's details, and book a technician - the customer did all of that themselves. Then, at the end of the job, they didn’t need to send an invoice, chase up the payment, or give the technician a mobile EFTPOS unit - the customer just paid online.

Another example I can give is from personal experience. I have cause from time-to-time to order some natural health products. There are three different companies that come to mind, with different ordering processes. One company has a website where I can easily locate the products I want, order and pay for them online. They even send me a barrage of shipping updates as it traverses the courier network. Another company requires me to email them with a list of what I want to order. They will then reply once they’ve entered the order and I then have to ring them to give them my credit card details over the phone. From there, that’s the last I hear from them until something turns up on my doorstep. The third company required me to print and write out an order form, write my credit card details on the form, sign it, and then scan and email it to them. Emailing credit card details is obviously far from secure and isn’t something I’d recommend.

So, when I have a choice of who I can order from, which company do you think I choose? Of course I choose the company that is easiest to transact with, which is the one with a full online ordering system. This is a good example of when a good digital customer experience can be a point of difference. Again, when you look at it from the other side of the fence, which company do you think has the smoothest processes and lowest administration costs? It’s the same company isn’t it? They don’t have to manually enter the order, or have someone at the end of the phone to process the credit card transaction, nor do they need to decipher my handwriting. This type of digital transformation provides a win-win for both customer and supplier alike - a “no brainer”.

Business Process Optimization & Automation

Every business has various processes and systems they follow, be it to deliver outcomes for their customers, or to manage internal needs, such as ordering uniforms or booking leave. Shipping goods to customers is probably one of the simplest processes (although given I used to run the IT department for a logistics company, I know running a warehouse is far from simple). Other businesses have far more complex processes, with a lot more information to manage and/or parties to coordinate. A good friend of mine recently had solar panels installed on his house. This required the provider to order the equipment, book the installers and electricians, request a meter upgrade from the power company, and organise the certification of the installation. This is a far more complex process that I expect is quite cumbersome and isn’t linear.

In my experience, small businesses tend to have poor processes. They can often get away with this while they’re small, as there is often only a small number of people, and they can generally “wing it”. However, this all tends to fall apart when the business starts to grow, as good processes are essential to scaling up a business.

Business processes can have either a positive or negative impact on the overall customer experience, depending on how good or bad they are. Think about the example I gave above about the air conditioner repair. How do you think the story would have changed if, on the day of the booking, the service technician never arrived? In the case of my friend’s solar installation, the company forgot to organise the upgrade of his electricity meter until a few days before the panels were installed. Good business processes ensure that the people turn up and everything is organised on time.

One of the 7 principles of the ITIL 4 framework is “Optimise and Automate”. It is meant in that order too, because there’s no point in automating a bad process.

Having good business processes that run smoothly is a good start. Digital technologies are often important in achieving smooth running processes, because it’s inevitable that you’ll need to manage information to support them. The best technology software will not just manage the information needed for a process, but will help guide that process, ensuring necessary information is gathered at the right time, and each step in the process is followed. Clunky technology that’s not fit for purpose can negatively impact business processes, especially if they don’t fit your business well. In many cases, the better your technology is at managing and supporting the process and the information you need, the smoother your processes will run.

The next step is automation. Automation can allow you to cut down on menial tasks, but can also ensure consistent results. The benefits of automation are quite clear to most people. Well executed automation can save time, reducing overhead costs and allowing for business growth without increasing administrative staff. Automation is entirely dependent on having well defined processes, detailing what happens in each possible scenario. This makes sense when you consider that to automate, you have to program a computer with exact details of what to do and when.

Where Does FileMaker Come In

The big strength of the Claris FileMaker platform is, through its low-code rapid development environment, is its ability to allow small-medium businesses to develop custom business apps that support and automate their business processes. FileMaker’s role is generally not in the customer-facing part of a digital customer experience, but working in the background, running internal business processes and systems. FileMaker apps can be accessed anywhere, either on the desktop, in a web browser, or from an iPhone or iPad. Integrations with many modern business software and cloud systems can allow FileMaker to automate many business processes.

As a Claris FileMaker Certified Developer with around 15 years of experience under my belt, I enjoy working with all sorts of different businesses to design and develop custom business apps to support their digital transformations. Get in touch for a no obligation consultation on how a FileMaker custom app could help with your digital transformation.

You can read more about the FileMaker platform here or read more about custom business apps made in FileMaker here.