5 top challenges to digital transformation success
Managing organizational change, mission alignment, third party vendors, impacted processes and data migration are the most common obstacles organizations struggle with.
Why do so many organizations lack direction on digital transformation?
Third Stage Consulting Group has released its "2019 Digital Transformation, HCM and ERP Report," in which it offers advice "to provide benchmarks and an understanding of industry trends related to enterprise implementations and digital transformations." The study also looks at "the top difficulties that executive sponsors and their project teams experienced. In the study, we focused on the root causes rather than the symptoms of transformation challenges. These were the top 5 difficulties faced by executives and project teams, ranked in order of the frequency that the challenge occurred."
Challenge #1 - Organizational change and the “people” part of the transformation.
“Whether it was intentional resistance or more subtle misunderstandings regarding the transformations, organizational change was the number one concern and challenge among executives and project teams that had recently gone through a digital transformation,” the report says.
Challenge #2 - Transformation misalignment with strategic objectives.
“Many CXOs and project teams struggled with transformations that did not support or align with their broader strategic objectives,” the report stresses.
Challenge #3 - Difficulty managing or addressing deficiencies with the system integrator.
“Companies that completely outsourced their deployments to an ERP system integrator, VAR, or reseller were more likely to experience challenges than those that took more active ownership of their transformations,” the report explains.
Challenge #4 - Clarity of business processes.
“Organizations that did not take the time to clearly define their future state business processes struggled much more than those that did,” the report says. “Those that relied more on ‘best practices’ and ‘off the shelf’ software functionality to drive their transformations actually experience the most difficulties.”
“Cleansing, mapping and moving legacy data to the new ERP system was a common challenge among organizations that recently completed a transformation,” the report says.