The advancement in digital technology provides businesses with the greatest opportunity to solve problems and be better, but digitally transforming is also one of the greatest challenges.
The Transformation Challenge
Over the last couple of decades, the implementation of Enterprise Resource Planning (ERP) systems, and more recently Customer Relationship Management (CRM) systems, provided the same revolutionary expectations but also the same challenges. Despite continuing advancements in these systems, the experience and results for many has been underwhelming.
“Analyst firm Gartner estimates 55% to 75% of all ERP projects fail to meet their objectives.”
Your guide to a successful ERP journey, Deloitte (2014).
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“Research shows that 70 percent of complex, large-scale change programs don’t reach their stated goals.”
The ‘how’ of transformation, McKinsey & Company (May 2016).
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“41 percent realised less than half of the benefits that they anticipated. An additional 16 percent of respondents stated they did not realise any measurable benefits.”
2015 ERP Report, Panorama Consulting Solutions (2015).
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How to be Successful
Experience and research has shown that leadership, planning and execution require greater focus to create any successful transformation. Technology itself is rarely cited as why things go wrong and why expectations are not met. Using our Activity Value Model as the framework, we guide you through these challenges to set you up for a successful transformation.
Well documented reasons for failure
Leadership & Vision
- Unclear vision & strategy for the business
- Poor understanding of customers’ problems/needs
- Accountability not shared with owners of day-to-day business outcomes, including achievement of benefits
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- Create an organisational-wide vision of the future:
- Customer & business value
- Key operational capabilities
- Reflecting your challenges and priorities
- Enable you to better understand your customers
- Integrate into a single company vision & strategy, not a secondary agenda
Pre-implementation Planning
- Lack of alignment of the required business capabilities to achieve the vision & strategy, including solving customers’ problems
- Benefits are ill defined to justify investments against each initiative
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- Analysis of required capabilities aligned to vision, maximising customer value and optimising time & effort
- Roadmap of technology & non-technology initiatives to deliver key capabilities
- Roadmap to include benefit realisation
Organisational Change & Execution
- Insufficient time & money allocated to organisational change
- Insufficient time & money allocated to internal execution capabilities & management
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- Analysis of current discipline to follow process and use technology – how easy will adoption be?
- Ongoing observations and feedback on your ‘digital culture’ and internal capabilities to deliver.
28Connect recognises that businesses are resourced for day-to-day transactional activities and not continual transformation. Our Activity Value Model provides a framework to guide and facilitate you through the leadership and planning challenges, identifying execution risks as we go.