In my previous blogs I discussed the benefits accruing to enterprises that find hybrid cloud solutions to their ERP transformations. They are able to capture financial benefits as they convert CapEx spend to OpEx while retaining the security benefits of on-premises applications alongside the speed and agility of cloud-based applications. I described it as “the best of both worlds”. I wrote about the implementation phase and how companies are using simulation, prototyping and other agile methodologies to test the viability of new products in shorter timeframes.

But digital transformations including cloud adoptions aren’t only about choosing the right technology or configuring it correctly. They have major cultural implications too.

If poorly handled these cultural issues have the potential to jeopardize the whole migration program and potentially destroy enterprise value on a grand scale.

Moving away from traditional on-premises models is a cause of major upheaval within the IT function, changing its role and creating waves in other functions. If managed effectively this frees up resources, including capital and people, for innovation and new business ventures. It has the potential to be the catalyst for transformative change. Handled insensitively it leads to attrition, internal dysfunction, and external disruption of service that will send customers into the welcoming arms of competitors. Success in this realm requires senior executives who can clearly articulate a powerful message. It demands the ability to build and lead organizations that are responsive, adaptive and willing to learn.

Learning organizations have the most to gain from digital transformation.

The companies that succeed tend to be ones that have historically invested in training and encouraged their employees to be mobile. They’ve had policies of moving people around between divisions to build their skillsets and broaden their knowledge. They’ve typically been good at attracting talent from outside and integrating those new people into the organization. They are receptive. They learn. In a sense they’ve been in training, making sure their people and processes are fit and ready for the challenge ahead whatever shape that takes. They take digital disruption in their stride.

These organizations are like the athlete who’s keeping her body in shape, doing her stretches and modifying her training routine whether she’s competing this week or not. When the time comes to train for her event she starts her build up regimen from a position of general wellbeing and fitness that gives her a springboard. The race, when it comes, is still grueling but she’s geared for success.

So then the organizations that are keeping themselves in shape, training, learning, and adapting are ready for the race.

The decisions around moving away from traditional models to cloud must of course involve CTOs and their cohorts but making sure that other leaders are also engaged and prepared for the non-technology related challenges is a requisite. It’s not only about the technology.

How can you overcome challenges and ensure the success of your transformation? Join us at SAPPHIRE NOW in 2017 as we discuss how the best companies across the world are using technology to power their business strategy.

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  1. Monika Patel

    Only when business houses openly accept, adopt, integrate, and practice Change Management plus Business Transformation in their day-to-day decision and business approach, then today technologies can act as enabler / catalyst towards realizing their dream of agile open business models and higher visibility and flexibility.

    Therefore for any Digital Transformation, along with being clear about the OBJECTIVE of Digital-transformation (that is the first question which one should normally ask), the 2nd and most important question is about Sr. Management’s commitment towards “Adopting CHANGE & EMBRACING Newer WAYS” of viewing the whole picture – business, people, process and technology.

     

    A decade ago, one used to say — “think outside the box” well I feel the time has come when we say –>

    Think like there is NO BOX at all….’

    The important word again here is THINK & not the BOX…

    Like box becomes invisible, today’s thin technology is moving towards being invisible’ – just to name a few examples – wearable gadgets, cloths, smart glass and so on…

    (1) 

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