In short
To digitize business processes, take them one at a time. Start with one that comes up often and costs time or causes errors today. Map it the way it actually runs, and measure cases, work time and follow-up questions. Then simplify it. Use your existing software and off-the-shelf tools first, and custom software only after that.
Key takeaways
- Start with a process that comes up often and takes up noticeable work time. A small one your team wants to change can go first.
- Map the process with the people who do the work, from trigger to result: the standard case first, then the exceptions.
- Measure cases, work time, lead time, follow-up questions and duplicate entries before any change. Without them, you can’t compare later.
- Simplify the process before you digitize it. A bad process stays a bad process when it goes digital.
- Check your options from simple to complex: rules, existing software, an off-the-shelf tool, integrations and only then custom software.
Which process should you digitize first?
The first process to digitize is one that comes up often, takes up noticeable work time today and involves only a few people. The German federal government’s organization manual names frequency and the staff time a process ties up as reasons to tackle it first. A small process your team wants to improve can go first, too.
A process is a sequence of work steps with a defined start and result, for example from a customer’s request to the quote you send. Germany’s Federal Office of Administration (external site) (in German) describes process digitalization as a change in which existing processes are questioned, optimized and supported digitally. That’s why software comes only after you’ve chosen, mapped, measured and simplified the process. These steps work for businesses anywhere. Two sections near the end cover the figures and funding programs in Germany.
Why: The federal organization manual’s section on prioritizing (external site) (Organisationshandbuch, in German) recommends looking first at the processes that matter most for success. Those include the ones that run most often or tie up the most staff. That’s where an improvement has the biggest effect. The manual also advises taking quick wins (external site) (in German): a simple process handled by a small team can rank first if the people involved want to improve it.
How to do it:
- List 5 to 10 recurring processes. Name each one with an action and an object, such as “Enter orders” or “Approve incoming invoices.” The manual recommends this form, too.
- Score each process using the table. This is a simple form of utility analysis, a scoring method the manual names for setting priorities.
- Pick the process with the most points. If two are tied, pick the one with fewer people involved.
| Question | 1 point | 2 points | 3 points |
|---|---|---|---|
| How often does the process come up? | less than once a week | several times a week | daily |
| How much work time does it take up? | less than an hour a week | a few hours a week | more than a day of work a week |
| How often are there follow-up questions, errors or duplicate entries? | rarely | regularly | in almost every case |
| How many people are involved? | more than 5, or several departments | 3 to 5 | 1 or 2 |
| Do the people involved want to change anything? | not really | partly | yes, they already have ideas |
Example: Say a business with 12 employees lists six processes. “Enter orders” comes up daily and takes more than a day of work each week, and almost every order gets typed in twice. Three to five people are involved, and the team already has ideas. With 14 of 15 points, this process comes out on top.
Common mistake: The first process spans several departments. Bitkom, Germany’s digital industry association, published a guide to its maturity model for digital processes (external site) (in German) in March 2026. According to the guide, process automation in practice often stops at the boundaries between departments and between companies. So start with a process that stays within one department.
Done when you’ve chosen one process with a name, trigger and result, and everyone involved knows it’s the first one.
How do you map the process as it really runs?
Map the process with the people who handle it every day: each step from trigger to result, plus the people involved, software, data, rules and exceptions. Record what actually happens today, and start with the standard case, the path that most cases take.
Why: Without a shared picture, everyone describes a different process. The organization manual shows this with an everyday example: even for getting bread rolls from the bakery, several people disagree about which steps belong to it.
How to do it:
- Define the start and the end: What triggers the process, and how do you know it’s done? The manual recommends describing every process first with a simple formula: input, activities, output (external site) (in German).
- Walk through 3 to 5 real cases from recent weeks with the people involved, step by step, using emails, forms and spreadsheet rows.
- Fill in the process profile under “From our work.” It follows the minimum details the manual lists for a process profile (external site) (in German).
- Describe the standard case first and the exceptions after it, as the manual recommends.
- Mark every media break, meaning each point where information switches medium as it’s passed along, for example from an email to a spreadsheet. That’s the definition in the entry on media breaks (external site) (in German) in Gabler Wirtschaftslexikon, a German business dictionary. Media breaks can distort information, and they slow processing down.
To start, sticky notes on a wall are enough, with one column per role. The manual also allows simple tools, and it suggests a formal notation such as BPMN 2.0 (ISO/IEC 19510) only once the process is settled.
Example: In the hypothetical “Enter orders” process, orders come in by email, by phone and on paper. Each one is typed into a spreadsheet first and into the invoicing software later. That makes at least two media breaks per order.
Common mistake: Management describes on its own how the process should work. Then the workarounds the team uses every day are missing.
Done when the process profile fits on one page and everyone involved has confirmed that it shows the process as it runs today.
What should you measure before you change anything?
Before you change anything, measure how often the process comes up, how much work time a case takes, how long it takes from arrival to result, and how often follow-up questions and duplicate entries occur. With this baseline, you’ll see later whether the change works.
Why: Without a baseline, all you can compare after the switch is impressions. The organization manual names processing times, lead times and error rates (external site) (in German) as typical process metrics.
| Figure | What it shows | How to collect it |
|---|---|---|
| Cases per week | how often the process comes up | count from data you already have, such as your inbox, your order list or invoice numbers |
| Work time per case | how many minutes a case takes, across everyone involved | time log sheet: everyone notes their minutes |
| Lead time | how long a case takes from arrival to result, including all waiting time | note the date and time of arrival and completion |
| Follow-up questions and errors | how often someone has to ask again or correct something | tick a box on the time log sheet |
| Duplicate entries | how often the same details get typed in a second time | tick a box on the time log sheet |
According to Gabler’s entry on lead time (external site) (Durchlaufzeit, in German), the lead time of an order is the sum of processing, transport and waiting times.
How to do it:
- Count the cases from data you already have. The manual also advises taking quantities from IT systems where possible.
- Attach a time log sheet to every case, on paper or as a row in a spreadsheet. Everyone who works on the case notes what they did and how many minutes it took, plus when the case came in and when it was closed. The manual describes this time log sheet method (external site) (Laufzettelverfahren, in German) for measuring processing times and lead times.
- Try the sheet for a few days with one or two of the people involved, and adjust it before everyone joins in. The manual recommends this, too. Record times in whole minutes.
- Measure during normal operations, and keep going until you have enough cases. The manual sets the length of the measurement so that enough runs of the process get recorded.
Analyze without names. Before you start, show the team the time log sheet and explain what the figures are for. In the manual’s method, the sheets are anonymized for analysis. If your business has a works council, involve it early.
Example: In the hypothetical process, four weeks of time log sheets show 40 orders a week and 12 minutes of work per order, 5 of them for retyping. For 8 of the 40 orders, a follow-up question takes 10 minutes each. On average, two business days pass between an order arriving and its confirmation. The calculation is under From our work.
Common mistake: The team measures only after the switch. Then there’s nothing to compare against.
Done when you have all five figures from a normal period, dated and without names.
How do you simplify the process before adding software?
Simplify the process on paper first: cut steps nobody needs, clarify who’s responsible and make sure every detail is entered only once. The German federal organization manual is clear on this point: a process must never be digitized unless it has been optimized first.
Why: Software carries out every step you give it, including the unnecessary ones. Bitkom’s maturity model guide makes the same point: if you digitize a bad process, you get a bad digital process.
How to do it: Check every step in the process profile against the following questions. They’re based on the manual’s checklist for analyzing processes (external site) and its options for a target process (external site) (both in German).
- Does anyone need the result of this step? If not, cut it.
- Can two steps be combined or done at the same time?
- Is it clear who’s responsible for the step?
- Is any detail entered a second time? Decide on the one place where it gets entered.
- Are details missing so often that you need follow-up questions? Define mandatory details, for example in a template.
- Does every case need the same check, or would checking certain cases be enough?
Write down the result as your target process, again on one page.
Example: In the hypothetical process, the team sets two rules. Orders come in only through a form with required fields, and the order list is the only place where they’re entered. The invoicing software should take the data from there. The next step shows whether existing software can do that.
Common mistake: The paper form gets rebuilt one-to-one as a fillable PDF. The fields nobody needs stay, and so does the retyping.
Done when the target process fits on one page, every cut or change has a reason, and the team has agreed to it.
Which tools are enough, and when do you need custom software?
Go through the options from simple to complex, and stop at the first level that can handle your target process: rules and templates, existing software, an off-the-shelf tool, integrations between programs and, last, custom software. The German federal organization manual also asks which existing IT systems can support a process right away.
| Level | Tools | Enough if | Move on if |
|---|---|---|---|
| 1 Rules and templates | responsibilities, checklists, standard templates and required details | there are few cases in a small team | details are kept in several places, or cases get lost |
| 2 Existing software | features your office suite, accounting software or industry software already has, such as forms, shared lists and approvals | the program covers the target process with its settings | a must-have requirement is missing |
| 3 Off-the-shelf tool | a standard product made for exactly this task, often on a subscription | a product meets every must-have requirement through its settings, and you can export your data | details still get copied between programs by hand |
| 4 Integrations and automation | integrations between the programs you already use, automation services and low-code platforms | the programs offer integrations and the rules are simple | no product covers the core of the process |
| 5 Custom software | a web app or add-on developed for your process | no product covers the process, or the process sets you apart from competitors | not specified |
How to do it:
- Derive the must-have requirements from your target process: What data, roles and rules does the process need, and which programs have to be connected?
- Check the programs you already have first. Ask the vendor about features you don’t use yet and about integrations.
- Test an off-the-shelf tool with real cases from your measurement before you sign, and ask how you can export all of your data. If a vendor will process personal data on your behalf, check with your data protection advisor which contracts you need. Our comparison CRM vs. ERP for small businesses shows whether a CRM or an ERP is the right tool for your process.
- Check whether an integration can carry the data from one program to the next. Then nobody has to type it in again. Our comparison Low-code vs. custom development shows when a low-code platform is enough.
- Consider custom software only when none of the lower levels can handle the process. Our comparison Build or buy software? shows how to compare an off-the-shelf product with a custom build over the same period. Our how-to on writing a software requirements specification shows how to turn your needs into requirements a provider can quote on. If a spreadsheet already serves as your database, our how-to How to replace Excel with a web app shows how to replace it.
If you’d rather not go through this alone: in a process check, we map one of your processes with you and first see whether off-the-shelf software is enough. What a process check includes is on our custom business software page.
Example: In the hypothetical process, the invoicing software can import orders through an integration, and the form can be built with the existing office suite. So levels 2 and 4 are enough. The business doesn’t need custom software for this process.
Common mistake: The software gets chosen before the target process is settled. Then the process has to bend to fit the product.
Done when you’ve noted for each level whether it meets your must-have requirements, and you’ve chosen a level and written down why.
How do you roll out the solution and check that it works?
Roll out the solution in a small team first, train everyone involved on real cases, and then measure the same figures as before. Comparing the new figures with your baseline shows whether to keep the solution, adjust it or extend it to other processes.
Why: According to the organization manual, process improvements often fail because the people involved don’t accept the new process. The more they helped develop it, the greater their acceptance usually is.
How to do it:
- Start with one team or one location. Decide beforehand how you’ll measure success, for example by fewer follow-up questions or a shorter lead time.
- Train everyone involved on real cases, and write down the new process as short instructions.
- Run the old solution in parallel only until the new one is stable, and set an end date for it.
- Measure once the new process has settled in: with the same figures, the same method and over a period of the same length as before.
- Talk with the team about sticking points at regular intervals. At first, also check that everyone is using the new process. The manual recommends this check so that nobody gradually slips back into old routines.
Example: In the hypothetical process, the team counts again for four weeks after the switch, using the same time log sheet. Only this second measurement shows how much time the form and the integration actually save.
Common mistake: The new solution goes live, but the old one stays in place with no end date. Then the team has to keep both up to date.
Done when the second measurement is in, you’ve compared it with the first, and you’ve decided which process comes next.
How far along are small and mid-sized companies in Germany?
In Germany’s Mittelstand, the country’s small and mid-sized companies, digitalization projects target customer contact and IT more often than internal processes. According to the development bank KfW, 30% of them completed a project in 2022–2024, but only 28% of those reorganized their workflows. In a survey by the German Chamber of Commerce and Industry (DIHK), time was the biggest hurdle.
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Projects: Companies that completed a project most often digitalized their contact with customers and suppliers (54%) and renewed their IT (50%). Among those with 50 or more employees, 52% reorganized their workflows. KfW counts every company in Germany with annual revenue of up to €500 million as part of the Mittelstand (KfW SME Digitalisation Report 2025 (external site), April 2026).
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Administrative processes: In 2025, just under half of companies with 20 or more employees saw themselves as laggards in digitalizing their business and administrative processes (49%).
Source: Bitkom (in German) (external site), · 602 companies with 20 or more employees
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Hurdles: In the DIHK Digitalisation Survey 2026 (external site) (in German), published in January 2026, 58% of companies named time and 56% named complexity as challenges of digitalization. The DIHK surveyed 4,686 companies in November 2025, including 2,055 with up to nine employees.
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EU target: In 2025, 73.6% of companies in Germany with 10 to 249 employees used at least 4 of 12 selected digital technologies. Eurostat calls this at least a basic level of digital intensity (external site); the EU average was 71.4%. Under the Digital Decade Policy Programme 2030 (external site), more than 90% of small and mid-sized companies in the EU should reach that level by 2030.
Source: Eurostat (external site), · dataset isoc_e_dii, index version 3, excluding the financial sector
If time is your scarcest resource, we think that’s a reason to start with a single process, as this how-to describes.
What funding is available in Germany, and what has ended?
To get started, businesses in Germany can turn to free advice, grants toward consulting costs and promotional loans for digitalization projects. Two well-known federal programs have ended. Whether your project gets funding is up to the funding body, so plan it to work without funding, too. As of November 2026.
| Program | What it offers | Status | Keep in mind |
|---|---|---|---|
| Mittelstand-Digital centers (federal economics ministry) | free, vendor-neutral advice and information for small and mid-sized companies | The current centers are winding down by the end of 2026; a new network is to start in 2027. | support without a grant |
| Business consulting grant (BAFA) | a grant toward consulting, including on organizational questions of running a business | guideline extended to Dec 31, 2028, with changed terms from Jan 1, 2027 | Don’t start before BAFA’s information letter arrives. Signing the consulting contract already counts as the start. |
| ERP digitalization loan (KfW) | a low-interest loan; process digitalization falls under tier 2, where you can also apply for a grant | fact sheet dated Apr 23, 2026 | apply through your bank before the project starts |
| go-digital (federal economics ministry) | a grant toward consulting and implementation, including in the module for digitalized business processes | ended Dec 31, 2024 | no new applications |
| Digital Jetzt (federal economics ministry) | an investment grant for digital technologies, mainly hardware and software | ended at the end of 2023 | no new applications |
Sources for the table:
- Federal Gazette notice on funding for Mittelstand-Digital (external site) (in German), Dec 15, 2025
- BAFA program page on consulting grants (external site) (in German), accessed Nov 7, 2026
- KfW fact sheet on the ERP digitalization loan (external site) (in German), as of Apr 23, 2026
- Ministry notice on the end of go-digital (external site) (in German), Jan 1, 2025
- Ministry report on innovation funding for small and mid-sized companies (external site) (in German), as of Sep 2, 2024
According to the KfW fact sheet, companies based abroad can also apply for the loan for their subsidiaries, branches or permanent establishments in Germany.
You’ll find federal, state and EU programs in the German federal funding database (external site) (Förderdatenbank, in German). The programs of the German state of North Rhine-Westphalia that we’ve checked for software projects are listed in our software development FAQ.
From our work: a template and calculation for your first process
Use this template to describe a process on one page and turn it into hours and euros. It follows the minimum details that the German federal organization manual lists for a process profile. We shortened it for businesses and added the figures from the baseline measurement. The example uses illustrative figures we chose ourselves, not client data.
| Field | Question | Example |
|---|---|---|
| Name | Action and object | Enter orders |
| Trigger | What starts the process? | A customer places an order by email, by phone or on paper. |
| Result | How do you know the process is done? | The order is complete in the order list, and the customer has a confirmation. |
| Owner | Who makes decisions about the process? | office manager |
| People involved | Who else works on it? | office team, technicians, accounting |
| Steps | What happens, and in what order? | read the order, look up the customer in the spreadsheet, enter the order, send a confirmation, notify the technicians |
| Software and documents | What do people work with? | email, spreadsheet, calendar, invoicing software, paper order form |
| Data per case | What details does every case need? | customer, address, service, preferred date, point of contact |
| Rules | What decisions are made? | Rush orders go straight to the technicians. |
| Exceptions | What runs differently from the standard case? | orders by phone, missing details |
| Media breaks | Where does someone retype data? | from email into the spreadsheet, from the spreadsheet into the invoicing software |
| Metrics | What do you measure? | cases per week, minutes per case, lead time, follow-up questions, duplicate entries |
| Step | Calculation | Result |
|---|---|---|
| Work time per week | 40 orders × 7 min entering + 40 × 5 min retyping + 8 follow-up questions × 10 min = 280 + 200 + 80 min | 560 min, or 9 h 20 min |
| Work time per year | 560 min × 45 working weeks ÷ 60 | 420 h |
| Of which retyping and follow-up questions | (200 + 80) min × 45 ÷ 60 | 210 h, or half |
| Cost per hour | your own figure; here the German average for 2024 | €44.32 |
| Labor cost per year | 420 h × €44.32 | €18,614 |
| Of which retyping and follow-up questions | 210 h × €44.32 | €9,307 |
Source: Destatis (in German) (external site), · labor cost per hour worked in 2024, labor cost survey
Use your own figures. Labor costs per hour vary widely by industry and German state: in 2024, they ranged from €25.73 in food and beverage service to €83.78 in passenger air transport. The 45 working weeks are an assumption that allows for vacation, public holidays and sick days.
The calculation shows where the time goes. In the example, half of it goes to retyping and follow-up questions. That’s exactly where the form with required fields and the integration from the example come in. To see whether a solution pays off, compare these hours with the cost of the solution over the same period. Our cost guide How much does custom software development cost? shows what custom software costs on the market.
Frequently asked questions
Do we need a digitalization strategy first?
Not necessarily for your first process. The German federal organization manual says processes should ideally be digitized based on a digitalization strategy, but it also advises taking quick wins. In our view, a plan becomes worthwhile once several processes use the same data, if not sooner.
What does it cost to digitize a process?
That depends on the level you stop at. Rules, templates and existing software mainly cost your team’s time. An off-the-shelf tool often comes with an ongoing fee, and custom software with a development price plus ongoing maintenance. Our cost guide How much does software maintenance cost? shows what maintenance costs.
Can AI take over the process?
Partly, if the process is documented and the data is clean. According to Bitkom, one in five companies with 20 or more employees used AI in 2025 to process emails automatically. What Bitkom’s maturity model guide says applies to any automation: process models and data are a basic prerequisite.
Source: Bitkom (in German), · 602 companies with 20 or more employees