System-driven business vs Owner-driven: What are the differences?

In recent years a shift from an owner-driven business to a system-driven business is seen. During the pandemic, entrepreneurs and IT leaders needed to adapt to working from home and maintaining a systemized workflow.?

The organizations that were able to successfully adapt to the changes became more process-driven than people-driven, which ultimately helped them accelerate their digital escalation.

So, let’s find out what exactly is the difference between owner-driven business and system-driven business and how can one use technology to systemize their workflow.

What is an Owner-driven business?

An owner-driven business relies on its people to deliver a product or service. The operations, as well as growth, depend on the employees. Person-driven businesses have to rely on managers to motivate the team and take the company forward.?

What is a System-driven Business?

System-driven businesses focus on pre-defined procedures to complete their objectives. The responsibility for operations shifts from people to pre-set processes and workflows.

This creates a structured environment, where people don’t have to assume their tasks and goals. It helps develop and optimize procedures to minimize any unnecessary steps.?

Differences Between Owner Driven and System Driven Business

The owner-driven business model was a default option before but with technological advancement, it is slowly being replaced by system-driven business because of the following reasons.

Time-consuming

Repetitive tasks eat up most of the time of an employee's workday. Statistics have shown that employees effectively work for less than 3 hours in an 8-hour workday because of performing repetitive tasks.?

It reduces the critical thinking feature of an employee and increases frustration among employees.

With System-driven processes employees can automate their repetitive manual tasks and focus on growing the company.

Labour Dependent market

Owner-driven organizations depend on hiring employees with the right skills at the right time.?

The common process is to hire when necessary, but it’s neither time-effective nor cost-effective.?

Studies show companies spend a bulk amount on the recruitment and onboarding process.?

Businesses also have to face bigger competition as remote work has become the new standard.

Implementing automation software to perform pre-defined tasks can turn out to be a cost-effective solution for businesses.

Retention Rate

The company’s mission and vision often don’t align with some employees’s mindset.?

Employees dream of achieving more and they are more likely to disengage or drop if they get better options or lose interest in the jobs.?

This challenge can be resolved by engagement activities and motivation techniques in the company. But, active employee disengagement might affect the growth of the organization.

The system-driven businesses allow employees to engage in team-building and creative thinking, which encourages an employee to connect with the work sphere and increases the retention rate.

Human Errors

Performing a task manually increases the chances of constant errors and deflections.

It also becomes hard to track the errors in a wide range of tasks.?

With system-driven processes, it becomes easy to track the deflections and correct them.

Team-bonding

System-driven businesses create an environment, where optimization of the processes becomes a natural part of the structure and involves the whole organization.?

Scalability

Rapid growth management becomes easier in system-driven organizations. The structure of operations is already defined and changes or updates to it take comparatively less time and effort.?

With a click of a button, the system assigns new teams without the need for hiring or exhausting the management staff.

How to become a system-driven business?

The common misconception among owners about shifting from owner-driven business to system-driven business is that documenting the processes is enough.?

It standardizes the procedures in the company but doesn’t ensure following them. Automation Software allows employees to pre-set their workflow, assign and delegate tasks, move smoothly along the FMS, and have functions that smoothen the workflow.?

It also must allow monitoring of the progress and following the procedures.?

Conclusion: Owner-driven business vs System-driven business: Which is best for you?

With technological advancement, 75% of businesses will predictively shift from owner-driven businesses to system-driven businesses and adopt automation software by 2025.

So, to become an efficient system-driven, a business must have software that aligns with all the above-mentioned features.

Transform to an efficient system-driven business with MIDAP

The transition from a person-driven to a process-driven business requires knowledge for finding the right models and procedures. It becomes much easier with ready-to-use templates and a team of professionals, who install the system and ensure its optimization.

MI Digital Autopilot(MIDAP) is a business process automation software integrated with WhatsApp, designed in a way that a low-level employee can easily manage.?

It offers features like a Flow Management System (FMS), Inventory Management System (IMS), Payment Collection Engine, ChatBOT, Drip Marketing, Easy Task Delegation & Assignment, etc. to align with your organization's mission and vision and take the business operations to the next level.

To meet your success, Book a Demo and Start Your Free Trial Today!

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