Taylorization and Digitalization of Business Processes: Advantages, Disadvantages and Examples

Taylorization, a concept introduced by Frederick Winslow Taylor in the early 20th century, transformed industrial process management by introducing standardized work methods to improve efficiency and productivity. Today, this concept finds new life through the digitalization of business processes, where automation and digital optimization are used to achieve similar goals in modern companies.

What is Taylorization of Business Process Digitalization?

Taylorization applied to the digitalization of business processes consists of breaking down tasks into simple sub-processes, then using digital technologies to automate and optimize these sub-processes. The goal is to minimize human intervention, reduce errors, and maximize operational efficiency.

Benefits

1. : As in traditional Taylorization, digital business process automation allows tasks to be standardized and completed faster than by hand. Digital processes reduce lead times and increase productivity.Increased efficiency
2. : By automating repetitive tasks, businesses can reduce labor costs and minimize human error, which can also reduce remediation costs.Cost Reduction
3. : Digitalization ensures that each task is carried out in a uniform manner, according to defined standards, which guarantees a consistent quality of the final product or service.Uniformity and standardization
4. : Digitized processes automatically collect valuable data that can be used for analysis, continuous improvement, and strategic decision-making.Improved data collection
5. : Digital systems can be quickly adjusted to meet new business requirements, providing flexibility that manual processes do not have.Agility and flexibility

Disadvantages

1. : Much like traditional Taylorization, this approach can lead to the dehumanization of work, limiting employee creativity and satisfaction as employees are reduced to mere operators of automated processes.Dehumanization of work
2. : Too much reliance on technology can leave businesses vulnerable to outages, cyberattacks, and other technology-related issues.Technology Dependence
3. : Digitalizing business processes can be complex to implement, requiring significant investments in time, money, and human resources for planning, training, and maintenance.Implementation complexity
4. : With automation, there is a risk of loss of human know-how, as employees may no longer practice or develop certain professional skills.Loss of human skills
5. : Digital transformation of business processes may encounter resistance from employees who fear for their jobs or have difficulty adapting to new technologies.Resistance to change

Examples 

1. : An auto parts manufacturer can automate assembly and quality control processes using robots and computer vision systems. This allows for faster production with fewer errors than manual processes.Manufacturing Industry
2. : A bank can digitalize its loan application processing processes by using credit scoring algorithms and online platforms to submit and process applications, reducing time and costs.Financial Services
3. : A company can use human resources management software to automate the recruiting process, from sorting resumes to scheduling interviews to onboarding new employees, making the process more efficient and consistent.Human Resources

Conclusion

The Taylorization of business process digitalization offers undeniable advantages in terms of efficiency, cost and standardization. However, it also carries risks of dehumanization and over-reliance on technology. The key for companies is to find a balance between automation and maintaining human engagement, in order to reap the benefits of digitalization while preserving innovation and employee satisfaction.