Digital transformation is no longer a mere buzzword; it has evolved into a critical factor for business survival and sustainability. The KPMG Global Transformation Survey reveals that 96% of companies prioritise transformation. However, despite it’s importance, less than half of them feel they fully realise its value.
In this article, we delve into the core aspects of digital transformation, exploring the reasons for its failures and the pivotal role of ERP and CRM in building the digital core.
What is digital transformation?
Digital transformation refers to the integration of digital technology into various aspects of a business or organisation, fundamentally changing how they operate and deliver value to their customers.
In changing economic times, digital transformation has become imperative for businesses across industries. It involves leveraging technologies like artificial intelligence, cloud computing, big data analytics, and the Internet of Things to streamline processes, enhance efficiency, and drive innovation. By embracing digital transformation, companies can adapt to the rapidly evolving digital landscape, stay competitive, and meet the changing needs and expectations of their customers.
Reasons for digital transformation failures
1. Failure to understand operating model complexity
One common pitfall in digital transformations is the failure to comprehend the complexity of the operating model, extending beyond mere technological considerations. A thorough understanding of the operational intricacies is crucial for a transformation journey to be successful.
2. Inability to innovate
While digital transformation thrives on innovation, the lack of fostering a culture of continuous innovation can significantly slow progress or bring it to a stop. Organisations must prioritise cultivating an environment that encourages creativity and forward-thinking.
3. Missing the cultural connection
The cultural aspect is often overlooked but plays a pivotal role in the success of digital transformations. Aligning the transformation strategy with the existing organisational culture is essential for seamless integration and acceptance.
4. Failure to prioritise business value
A common misstep is neglecting a business-value-first approach to technology. Successful digital transformations focus on aligning technological advancements with tangible business value, ensuring a meaningful impact on the overall goals.
5. Inability to execute
Execution is the linchpin of digital transformation success. Challenges arise when organisations struggle to translate strategies into actionable steps. Effective execution demands a well-defined plan, executive stakeholder buy-in, and a determination and commitment to seeing it through.
The digital core: ERP and CRM
At the heart of a successful digital transformation lies the digital core, comprising an intelligent suite, service, and a cloud-based digital platform. While finding the right technology, especially CRM and ERP solutions, is crucial, it’s only one piece of the puzzle. The evaluation journey must ensure all operational processes’ features, functions, and capabilities are unified under one data umbrella.
Drawing from our extensive global transformation projects, the alignment of business strategy with service delivery, and unifying people and processes under a single governance structure, emerge as the proven recipe for success and longevity. A modern ERP cloud solution not only facilitates this alignment but also keeps organisations up-to-date with changing global compliance standards.
Crafting a tailored solution: templated CRM, ERP and TOM
Intertwining a templated CRM and ERP cloud solution tailored to your industry, coupled with a flexible Target Operating Model (TOM), provides the necessary capabilities to flexibly address today’s goals of maximising revenue growth. Simultaneously, it positions organisations to be ready for potential economic contractions in the future, where a streamlined operation becomes paramount.
Considering the current economic landscape, marked by the peak of the debt cycle and one of the longest bull runs in history, the time is ripe to optimise and transform operations with your malleable TOM. The impending uncertainties, as suggested by figures like Ray Dalio and other economists, underscore the importance of being prepared with a transformed operation. This preparation offers clear visibility to make rapid and informed decisions using the right CRM and ERP, crucial for weathering any storm ahead.
Conclusion
In conclusion, digital transformation is not just a strategic imperative; it’s an imperative shift for organisations to thrive in the ever-changing economic landscape. Addressing the reasons for failures, embracing the digital core of ERP and CRM, and crafting a tailored solution with a flexible TOM are integral steps. Now, more than ever, businesses need to proactively discover and implement the requirements for a successful CRM and ERP transformation.
Call To Action
Avoid the perils that hindered others in this ever-changing economic landscape. Embrace digital transformation as the key to resilience and success in the evolving business environment. Discover today what it takes for your business to achieve a CRM and ERP transformation the right way
Want to know about digital transformation for your business?
Avoid the perils that hindered others in this ever-changing economic landscape. Embrace digital transformation as the key to resilience and success in the evolving business environment. Discover today what it takes for your business to achieve a CRM and ERP transformation the right way.
Our NetSuite team are passionate about helping business leaders realise the full potential of this powerful software. Give us a call at 1800 155 683, or schedule a call through our convenient booking calendar.
