The Growing Importance of Process Thinking in Digital Transformation

LEAN InSight
by Dr. Marc Hermo IV, DBA, CLSSMBB

The Growing Importance of Process Thinking in Digital Transformation

Digital transformation is often discussed as a technology initiative. Organizations invest in automation, artificial intelligence, analytics, cloud platforms, and digital tools to improve efficiency, speed, and customer experience. Yet many transformation efforts fall short not because the technology is weak, but because the organization lacks a clear understanding of how work actually flows across the business.

This is why process thinking is becoming increasingly important.

Process thinking is the discipline of viewing work as an end-to-end flow of value rather than as a series of isolated tasks performed within separate departments. It encourages leaders to look beyond functional silos and ask a more important question: how does work move across the organization, and how do those connections affect customer outcomes, cost, speed, and quality?

In many organizations, work is still managed primarily through functions, teams, or systems. As a result, digital transformation efforts are sometimes approached in fragments. One department implements a new platform, another automates a set of tasks, and another introduces reporting dashboards. While each initiative may have merit, the broader process often remains broken. Handoffs are still unclear, approvals remain slow, responsibilities overlap, and process variations continue to create delays and inconsistencies.

Process thinking helps address this problem by shifting attention from isolated improvements to the full operating flow.

This matters because digital transformation is not only about digitizing tasks. It is about redesigning how work is done so that the organization can perform better as a whole. When leaders adopt a process view, they are better able to identify bottlenecks, eliminate duplication, clarify ownership, simplify decision points, and align technology investments with actual business needs. In that sense, process thinking provides the bridge between transformation strategy and day-to-day execution.

It also supports stronger cross-functional alignment. Most customer-facing outcomes do not depend on one department alone. They depend on how well multiple functions work together across the process. A customer request, for example, may pass through sales, operations, finance, support, and compliance before it is fully delivered. If each area focuses only on its local tasks, the overall experience can still be slow and frustrating. Process thinking helps organizations manage these interdependencies more effectively.

Another reason process thinking is growing in importance is the increasing availability of data about how work actually happens. Through process mining and related analytical tools, organizations can now examine event logs from their systems to see real process flows, identify variations, detect bottlenecks, and assess conformance with intended procedures. This gives leaders a more objective basis for redesign and continuous improvement. Rather than relying only on assumptions or process maps created in workshops, they can use actual process data to guide transformation decisions.

This makes process thinking especially relevant in the digital era. The more organizations invest in digital tools, the more they need a clear understanding of the processes those tools are meant to support. Without that foundation, technology initiatives can become disconnected, overly localized, or difficult to sustain. With it, digital transformation becomes more coherent, evidence-based, and aligned with enterprise goals.

For leaders, the implication is straightforward. Digital transformation should not be viewed only as a technology agenda. It should also be seen as a process agenda. Organizations need to understand how work flows, where value is created, where friction exists, and how the process should be redesigned to support better outcomes.

Technology remains an important enabler. But technology alone does not create transformation. Lasting transformation happens when organizations combine digital capability with clear process thinking.

In today’s environment, that capability is no longer optional. It is becoming one of the foundations of successful digital transformation.

References

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Plekhanov, D., Franke, H., & Netland, T. H. (2023). Digital transformation: A review and research agenda. European Management Journal, 41(6), 821–844. https://doi.org/10.1016/j.emj.2022.09.007

Stjepić, A.-M., Ivančić, L., & Suša Vugec, D. (2020). Mastering digital transformation through business process management: Investigating alignments, goals, orchestration, and roles. Journal of Entrepreneurship, Management and Innovation, 16(1), 41–74.

van der Aalst, W. M. P. (2022). Process mining: A 360 degree overview. In W. M. P. van der Aalst & J. Carmona (Eds.), Process Mining Handbook (pp. 3–34). Springer. https://doi.org/10.1007/978-3-031-08848-3_1

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

About the Author

Dr. Marc Hermo IV, DBA, CLSSMBB is the founder and Chief Consultant of INNOVEO™ Consulting. He is a Certified Lean Six Sigma Master Black Belt with over 25 years of experience in process improvement, operational excellence, and organizational transformation. He is also an academic and researcher focusing on Innovation, Organizational Transformation, and Process Intelligence.