What an ERP digital transformation is about …

…and why we have still been struggling with (mostly the same) issues since more than 30 years?

I think DT is a new name of what we do implementing an ERP since years and dare to form it in very short way:

“Digital Transformation is an organizational transformation driven by the newest technology”

Exactly this way with emphasis on the "transformation".

It may be a little strange that "the newest" is here relater to the ERP "technology" (or maybe better business model) which i s 30 years old, but it seems it is still "the newest" in a view of understanding of it.

In this case it will help to understand it well, as a problem well stated is a problem half solved, and a problem well named is close to be well stated. So let’s put it a bit longer:

“Digital Transformation is an adoption of the newest digital technology and organizational change along of this adoption to get together the best new added value by new business model”

This is my definition and understanding of it, as the SAP specialist with more than 20 years of experience. What more important this is very true for ERP – this parallel synchronized adoption of technology and organizational change is a sine qua non of successful implementation.

In other words: Implementing ERP we take and change not only material state of IT, but also change substantially the organization, to get the best result of both these components together.

The term “Digital Transformation” is a new wording of what we do and struggle with for 30 years in ERP area, new and very good explanation of the very nature of it.

I have tried to put it in form of simple picture and found this rocket as a good illustration.

I write this article it after a huge surprise reviewing digital definitions formed by most renowned agencies.

For example, Gartner’s current definition is a bit disappointing:

“Digital business transformation is the process of exploiting digital technologies and supporting capabilities to create a robust new digital business model.”

This is even not any close to “transformation”! Puts an accent on "exploiting digital technologies" and some "supporting capabilities". What is the later though? - If this means "Organization", "Processes" and "Culture" that must change along I would not consider as a proper name...

This above is about adoption maybe a bit adaptation. Very cheap. So, we have a kind of business process and we try to take new toys (world “exploit”) to automate a part of it thus creating a new digital business model.

This one in Wiki is also not really accurate for ERP and also a kind of unclear in broader sense:

“Digital Transformation (DT) is not necessarily about digital technology, but about the fact that technology, which is digital, allows people to solve their traditional problems.”

I wouldn’t say transformation is to solve problems, it is rather about to get a radical improvement in form of an business innovation.

Quite nice have found at McKinsey:

“A closing thought, and perhaps one that reframes the challenge: the term digital transformation puts the emphasis on technological change. But it becomes clear to anyone who understands digital technology’s potential that what is afoot is less of a digital transformation and more of a fundamental rethink of the corporate model, for which digital technology is the catalyst.” Source:

However quite complex it is…

So, in practical sense how we can wonder we cannot solve problems with 30 years old technology of ERP if we struggle even to name the process of implementing of it sound and clear way?

Look forward to hearing your definition of DT!

Will dig deeper so stay tuned!

#digitaltransformation

#erp

#changemanagement

#projectmanagement