Business transformation is a vital aspect of an organization’s growth and development, but it can take many different forms depending on the company’s needs, according to an article by SAP in Forbes.
Each transformation journey is unique yet still benefits from a structured approach, with common steps that guide companies toward successful outcomes.
Using a systematic framework helps companies stay resilient and agile while avoiding pitfalls along the way.
A recent study by Oxford Economics and SAP reveals that many organizations frequently encounter delays and budgetary setbacks during transformations.
“A successful transformation requires a strategic approach, full leadership commitment, and a clear understanding of challenges and opportunities,” said Thomas Saueressig, a member of the Executive Board of SAP SE, Customer Services & Delivery.
A strategic approach helps you plan and can give you an idea of where to start.
SAP suggests a five-stage plan.
1. Map your current state, looking at how your business operates today.
2. Analyze: Identify opportunities to see the potential value of transformation, while looking at underperforming areas and devising strategies for improvement.
3. Design: Create your to-be state by modeling the business landscape you want to achieve, then building a road map to get there.
The study by Oxford Economics and SAP found that 63 percent of companies face pushback from senior leadership, especially in the early stages of transformation. Use data to demonstrate the value of your initiatives early on.
4. Implement: Execute your plan to implement the new processes and IT changes that are part of the business transformation road map, while continuing to offer support, training, and guidance.
Digital adoption and enablement are a big part of executing business transformation initiatives. A recent digital adoption study by WalkMe, now part of SAP, found that organizations with digital adoption best practices achieve an 85 percent ROI on their transformation investments.
5. Operate: Quantify the value realized in your new, agile business model. Business transformation isn’t static but must deal with constantly changing environments and unexpected disruptions.
You can refine the process with regular tracking and analysis for continuous improvement and adaptability to new challenges.
Read more details on the business transformation strategy in Forbes.
