Digital transformation is a business transformation and a company-wide change management project. When digital transformation projects fail or stall, it is seldom a technical problem – it is almost always a cultural one. In reports and articles from McKinsey and others, we learn that poor planning, misaligned goals, and unclear strategies are the cause of the bulk of transformation setbacks.
In their fifth annual State of Digital Transformation report, the Altimiter research group finds that, typically, the bulk of ownership is shared between the CIO and the CEO. But as digital transformation is no longer seen as an exclusively technological initiative, businesses are starting to rely more upon internal business process specialists to ensure that digital technology integrations have the best benefit for all.
Of course, this varies from business to business, but for most companies a modern, AI-powered cloud ERP with an in-memory database is at the center of any digital enterprise. Within the ERP system are the brains that analyze, direct, and process all the data and information from across the business.
Start simple by choosing a few key metrics that are most important to your specific industry and organization (lead acquisition, manufacturing productivity, predictive planning). Figure out where you are today on those criteria, set realistic target goals, and measure again at fixed points in time.
Unlike software upgrades of the past, digital transformation is not an isolated IT project. Digital transformation affects all areas and functions in a business and requires technological and cultural adaptation and resilience. Before this kind of project, reach out to your software vendor to ensure you’re charting the best path for your unique situation.