logo
Free 1:1 Strategy Session
Not sure what’s next? Let’s fix that.
In 30 minutes, we’ll help you uncover what’s not working — and map a path to move forward with confidence.





Honest feedback from experts
Actionable advice tailored to your goals
No hard sell — just clarity
Book Your Free Call
Expert Insights for Tech Leaders
Curious minds like yours deserve smarter content.
Get access to the trends, tools, and ideas shaping tomorrow’s products — before everyone else.
Fresh blogs, deep dives & frameworks
Built for founders, PMs & tech leaders
No spam — just the good stuff
Index
Digital Transformation

How Digital Transformation Is Revolutionizing Business Process Management

How Digital Transformation Is Revolutionizing Business Process Management
Digital Transformation
How Digital Transformation Is Revolutionizing Business Process Management
by
Author-image
Hammad Maqbool
AI Specialist

Dealing with slow approvals, disconnected systems, or too much manual work?

Many businesses are stuck with outdated business processes that drain time and energy. You’re here because you know there has to be a better way and there is.

Digital transformation in business process management is helping companies move beyond manual fixes. 

It’s about rethinking how work flows, using digital tools, automated processes, and even robotic process automation to improve speed, accuracy, and outcomes.

One stat says it all: 70% of digital transformation initiatives fail because broken or outdated existing processes never got fixed. (1)

This article will help you be part of the successful 30%.

Key Takeaways 

  1. Digital transformation in BPM helps replace manual, disconnected workflows with smart, automated processes.
  2. Business process management (BPM) provides the structure, while digital transformation powers speed, scale, and innovation.
  3. Ignoring digital transformation increases costs, slows growth, and risks customer dissatisfaction.
  4. Technologies like AI, RPA, and cloud-based tools are driving faster, more efficient operations.
  5. Successful BPM depends on clarity, continuous improvement, and aligning tech with business strategy.

What Is Digital Transformation in Business Process Management?

Digital transformation in business process management is the use of technologies like AI, automation, cloud computing, and analytics to improve how businesses manage and run their processes.

It helps companies move away from manual, disconnected tasks toward faster, more efficient, and data-driven operations.

The goal is to improve speed, reduce costs, and create better experiences for both customers and employees.

This transformation touches the entire process from daily tasks to decision-making, from employee workflows to customer interactions. 

Businesses are replacing manual processes with automated processes, using smart digital tools to make operations smoother and more scalable.

For instance, companies now use robotic process automation to process invoices or onboard employees, saving time and cutting errors. Others rely on AI workflow automation to monitor real-time performance and spot bottlenecks before they cause delays.

How are Digital Transformation and BPM Interconnected?

Infographic – BPM vs. Digital Transformation


Think of Business Process Management (BPM) as the method and digital transformation as the toolkit. They complement each other to drive real, lasting results.

Business Process Management (BPM):

  • Helps you map and understand existing processes clearly (“as-is” state).
  • Brings structure, standardization, and clarity to how work is done.
  • Supports process modeling and optimization across departments.
  • Enables better process governance and long-term accountability.
  • Ensures you're not automating chaos only well-defined workflows.

Digital Transformation:

  • Introduces digital technologies like AI, RPA, and cloud computing.
  • Enables faster execution through automated processes.
  • Powers better decisions using data-driven insights and analytics.
  • Enhances the customer experience with real-time, personalized interactions.
  • Helps companies adapt faster to new market conditions and customer needs.

When used together, BPM ensures the right foundation, while digital transformation delivers the power to improve, scale, and innovate. 

Organizations that combine the two are up to 70% more likely to succeed in transformation efforts (2).

Why Ignoring Digital Transformation in BPM Is a Risk

Skipping digital transformation in BPM isn’t just delaying progress. It’s exposing your business to serious downsides. Here’s why: 

  1. You’ll fall behind.

Competitors using digital tools and automated processes move faster, serve better, and adapt quicker.

  1. Tech alone won’t fix broken processes.

Without fixing your existing processes, even the best tools will fail to deliver results

  1. Costs stay high.

Manual processes lead to delays, errors, and inefficiency, especially across different departments.

  1. Customers notice the gaps.

Today’s users expect speed and personalization. Without process optimization, you can’t meet rising customer demands.

  1. You miss real-time insights.

Without data-driven decisions and clear key performance indicators, improvement is just guesswork.

Explain How a Digital Transformation Consultancy Can Help Fix All These Issues.

Start with the “As-Is”: Mapping Current Processes


Before jumping into automation or digital transformation initiatives, the first step is to deeply understand your current processes.

Skipping this step often leads to failed implementations, duplicated efforts, or automating the wrong things. That’s why a strong foundation in business process management starts with a clear view of the “as-is” state.

Why Mapping Your Current Workflows Matters 🔍 

Mapping your existing workflows gives visibility into what’s working, what’s not, and where the blockers are. 

According to Gartner, 75% of organizations are still in the process of standardizing their processes (3), which means many are transforming without clarity.

To do this effectively, combine digital analysis with human insight:

  • Use process mapping tools or BPM software to document how tasks flow across different departments.
  • Review system logs and data sets to spot delays, duplications, or missed handoffs.
  • Conduct employee interviews to uncover hidden issues like manual workarounds or paper-based routines.

Common inefficiencies include:

  • Repetitive data entry across systems
  • Long, unclear approval chains
  • Disconnected or outdated software solutions
  • Manual processes that could easily be automated
  • Paper-based documentation that slows access and decision-making

So, it’s best to involve your teams early. Let them help flag current pain points and suggest realistic improvements. 

This not only uncovers hidden blockers, it also builds the trust you’ll need during implementation and change management.

Designing the Future: How to Build Smarter Business Processes


A future-ready business process removes friction and adds value at every step. It replaces guesswork with data, and manual effort with smart automation.

💡 Invoice Processing Example.

Before – Manual entry, approval delays, paper trails.
After – AI scans the invoice, validates it, and routes it for auto-approval in seconds.


These types of new processes use:

  • Artificial intelligence for smart decision-making and forecasting.
  • Robotic process automation to eliminate repetitive tasks.
  • Process mining tools to find and fix bottlenecks fast.
  • Data analytics & AI insights for smarter optimization.
  • BPM software to manage and update workflows over time.

With the rise of emerging technologies like AI in industrial automation, AI chatbots for e-commerce, and even generative AI in cybersecurity, there are more ways than ever to design streamlined, scalable processes that drive business performance.

Align To-Be Processes With Strategy and Governance

You can’t redesign processes in isolation. They need to reflect business priorities.

  • If your strategy is customer-centric, optimize onboarding, support, and engagement.
  • If your focus is cost reduction or efficiency, target supply chain, accounting, and production workflows.
  • If your goal is new revenue streams, explore tech-driven innovation using custom AI model development or AI PoC & MVP pilots.

This is also the time to define process governance:

  • Assign clear roles: process owners, reviewers, documentation leads.
  • Set up a BPM Center of Excellence (CoE) to ensure continuous improvement.
  • Create feedback loops that track real-time performance using key performance indicators.

Game-Changing Technologies Powering BPM


Modern business process management is no longer just about flowcharts and documentation. 

It’s about building systems that think, learn, and improve on their own. These new technologies are enabling businesses to optimize processes, boost productivity, and drive true digital transformation.

1. AI & Machine Learning in BPM

AI and ML are helping companies move beyond automation into prediction and intelligent action. From fraud detection in finance to next-best-action tools in customer service, AI helps businesses process data faster and make smarter decisions.

💡 Did you know?

Businesses using AI for BPM report up to a 40% boost in productivity and 35% cost reduction (4).


Use cases include:

  • Predictive approvals for faster compliance
  • Identifying bottlenecks in real time
  • Hyper-personalized workflows using data sets in machine learning

Learn more about Artificial Intelligence and Machine Learning Services to find out how to use them for business process management. 

2. Robotic Process Automation for Repetitive Tasks

RPA is ideal for automating day-to-day work like data entry, document validation, and billing. It mimics human actions across apps without needing major system changes.

💡 Did you know?

The RPA market is growing at a CAGR of 43.9% through 2030, proving its long-term value and demand. (5)


It’s perfect for high-volume tasks like:

  • Employee onboarding
  • Financial reporting
  • Routine compliance documentation

Companies use RPA to reduce errors, increase efficiency, and allow teams to focus on higher-value work. 

3. Cloud & No-Code BPM Tools

Cloud-based platforms and low-code/no-code (LCNC) tools have democratized process innovation. 

Now, business users (“citizen developers”) can build and adjust workflows without writing a single line of code.

💡 Did you know?

By 2025, LCNC will be behind 70% of all new BPM applications (6).


This shift enables:

  • Faster deployment of digital processes
  • Easy testing of new automations
  • Continuous updates without waiting on IT

Whether you're integrating AI tools or building chatbots, AI automation and no-filter AI chatbots are driving this evolution.

4. Other New Technologies in BPM

Beyond AI and RPA, several emerging technologies are pushing the limits of what’s possible in digital transformation business process management:

  • IoT enables real-time tracking and predictive maintenance in industries like logistics and manufacturing.
  • Blockchain brings transparency and security to multi-party workflows (e.g., supply chains).
  • Generative AI can auto-draft documentation, flag inefficiencies, and even suggest workflow improvements.

Industries like industrial automation and cybersecurity are already applying these tools to achieve operational excellence and unlock new business models.

From Data to Decisions: Metrics That Matter


It’s not enough to automate tasks. You need to know if your processes are actually working. 

That’s where data comes in. Mature business process management means turning daily operations into measurable outcomes that support smart decision-making.

Track the Right Metrics to Improve What Matters

Modern BPM tools collect real-time process data from every click, task, and delay. 

But raw numbers aren’t enough. You need valuable insights that highlight what’s working, where things slow down, and how to optimize processes.

Key metrics that matter:

  • Order-to-Cash: cycle time, error rate
  • Customer Support: first contact resolution (FCR), CSAT, NPS
  • Compliance: number of exceptions, audit readiness
  • Production: output per hour, downtime, identifying bottlenecks

Use business process modeling and dashboards to connect your day-to-day work with business outcomes like operational efficiency, cost savings, and better customer experiences.

And with process mining, you gain visibility into how workflows actually happen, not just how you think they do. This helps teams identify inefficiencies, monitor real KPIs, and adjust quickly.

💡 Did you know?

74% of organizations plan to increase AI investment to gain better visibility and control (7).

Real-World Case Studies of Digital Transformation in BPM

These real-world examples show how companies across sectors are leveraging digital technologies and integrating BPM to transform operations, improve efficiency, and stay competitive in the digital age.

PhaedraSolutions – AI-Powered Inventory Management

In this digital transformation case study, PhaedraSolutions helped a client implement smart inventory software using PoC & MVP methodology. The solution featured barcode generation, predictive restocking alerts, and business process automation for inventory flow.

  • Reduced stockouts significantly
  • Delivered in just 10 weeks
  • Built over 5 agile sprints
  • Improved overall efficiency across the production line

This project illustrates how new digital tools can support rapid process improvement and help teams mitigate risks in fast-moving supply chains.

Goldman Sachs – Marcus Digital Banking

Goldman Sachs launched Marcus, a digital bank, by embracing digital transformation in banking through RPA, AI, and business process management tools. By redesigning workflows from the ground up, they enabled fully online onboarding, real-time support, and back-office automation.

  • Millions of users onboarded without friction
  • Seamless customer experience via intelligent workflows
  • Improved compliance and reduced manual effort

This case highlights how implementing BPM at scale can modernize business operations while maintaining regulatory control and delivering a competitive digital transformation journey.

Digital Transformation Challenges & How to Overcome Them

Even with the right tools and intentions, digital transformation efforts often fall short. 

Here’s how to tackle the most common blockers that stand in the way of improving business processes and achieving lasting change.

1. Failure Risk → Fix the Process Before You Automate

70–90% of transformation projects fail. Mainly because companies rush to automate without redesigning their underlying workflows. 

If you don’t rethink how the process works, you’re just automating inefficiencies. A strong foundation in business process improvement and clear process mapping are essential components of success. 

Focus on simplification first, then digitization.

2. Team Pushback → Make Change Feel Valuable

Many teams resist new systems out of fear, confusion, or lack of support. The fix? Lead with clarity. 

Explain the “why,” offer hands-on training, and reward quick adopters. Align change with daily wins, not just executive KPIs. When transformation feels like empowerment, adoption follows. 

This approach helps businesses continuously improve and unlock a real competitive advantage.

3. Tech Chaos → Standardize, Secure, and Sync Systems

Scattered data, outdated tools, and disconnected platforms can break even the smartest digital plan. Integration matters. 

Start with fundamental changes like data standardization, unified platforms, and secure APIs. 

Only then can your systems talk to each other, and unlock the insights you need to drive real business transformation.

4. Skill Gaps → Build Talent Before You Build Tools

Several IT leaders report skill shortages as a major blocker in transformation initiatives. 

That’s why successful companies don’t just buy tools, they build capability. Invest in upskilling your current teams and selectively hire where needed. 

Resources like best AI tools for coding or external partners like a digital transformation consultancy firm can also help accelerate delivery while your team levels up.

What’s Next: Future Trends in Business Process Management


Business process management is rapidly evolving to meet the demands of speed, personalization, and intelligence. 

Here are 6 trends that will define the next generation of BPM:

  1. Hyperautomation is enabling full end-to-end workflow automation by combining AI, RPA, and process mining.
  2. Citizen development is on the rise as non-technical users build workflows using low-code and no-code tools.
  3. Focus is shifting to human-centered BPM, prioritizing journey design over just backend process speed.
  4. AI-driven decision-making is becoming core to BPM, with predictive analytics improving process outcomes.
  5. Real-time process monitoring is replacing static dashboards, giving teams live insights and faster response times.
  6. Composable BPM platforms are allowing businesses to plug in modular process components and scale faster.

What to Look for in a BPM Solution or Strategic Partner

Picking the wrong business process management solution can slow your entire digital transformation journey. Here's what to look for.

The right BPM platform should support your entire lifecycle, from discovery and modeling to automation, monitoring, and continuous process improvement. 

Look for tools that integrate easily with your ERP, CRM, and even older legacy systems, so you don’t end up with disconnected workflows.

If your business processes are highly specific, a custom solution may offer more flexibility, a tailored user experience, and tighter alignment with your goals. While it may require a higher initial investment, it pays off in long-term agility and ownership.

On the other hand, off-the-shelf tools can be faster to deploy and cost-effective for standardized workflows. Just be mindful of their limitations in customization and scalability.

👉 Need Expert Help Navigating Your Options?

PhaedraSolutions offers full digital transformation support (from audits to custom builds) helping you implement the right-fit solution with speed and clarity.

Ready to Transform How You Work?

Digital transformation in business process management isn’t a nice-to-have. It’s how modern businesses stay efficient, competitive, and ready for what’s next. 

From AI and RPA to data-driven decisions and cloud platforms, the tools are here. What matters is how you use them.

Treat BPM as an ongoing effort, not a one-time fix. Keep improving, keep adapting.

Author-image
Musa Shahbaz Mirza
Senior Technical Content Writer
Author

Musa is a senior technical content writer with 7+ years of experience turning technical topics into clear, high-performing content. 

His articles have helped companies boost website traffic by 3x and increase conversion rates through well-structured, SEO-friendly guides. He specializes in making complex ideas easy to understand and act on.

Check Out More Blogs
search-btnsearch-btn
cross-filter
Search by keywords
No results found.
Please try different keywords.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Outdated Processes ?
Get Exclusive Offers, Knowledge & Insights!

FAQs

What is the role of business process management in digital transformation?

What is digital transformation in business management?

What are the 4 types of digital transformation?

What are the 5 stages of BPM?

Can I digitally transform my business operations with Phaedra?

Share this blog
READ THE FULL STORY
Looking For Your Next Big breakthrough? It’s Just a Blog Away.
Check Out More Blogs