In the track and field world, hurdles are obstacles that well trained athletes can effortlessly jump over with focus, timing and precision. However, clearing hurdles with ease is a skill that requires practice, patience and efficiency. The more an athlete can see the obstacles in front of them, the better chance they have of making subtle adjustments to their approach and being more flexible in running a successful race.
The same attributes are true in the world of digital transformation. When companies find themselves facing an ever-changing landscape of polycrisis, the supply chain race can only be won once organizations learn how to clear their respective challenges and push towards the digital transformation finish line.
In the Q and A below, Andreas Radke, Director of Business and Operations Development at mSE Solutions, shares his thoughts on the digital transformation battle, including the current difficulties many companies are facing and how organizations can categorically transform their businesses in times of great challenge.
In recent years, what level of success do companies report regarding the ability to implement their Digital Transformations solutions?
In a McKinsey survey from 2021, companies reported limited success regarding their ability to fully implement a digital transformation solution. 40-65% reported their system implementations did not realize their full value, were grossly delayed or were simply over budget. Similarly in a 2022 PWC survey, 80% of executives shared that the supply chain technology investments their organizations had made in the past did not fully deliver the results they were expecting.
What challenges do many organizations find themselves facing regarding Digital Transformations solutions?
In the face of polycrisis ranging from economic to societal and from political to environmental, the collective sum of these challenges has left many companies not knowing where to begin their race to a successful Digital Transformation solution. Many organizations report feeling overwhelmed and impacted by everything all at once. Between the COVID-19 pandemic, wars, inflation and multiple other factors, understanding where to begin running your race is often the most challenging part of the Digital Transformation journey.
How is Polycrisis a serious hurdle to running a successful digital transformation race?
When innovative operating models include an increase in capital cost, multiple disruptions and negative impacts to a company’s overall KPIs can often produce uncertain outcomes. By implementing a deliberate and focused digital transformation approach, including understanding the impact of your data, organizations can accelerate their business processes at the same time, increasing cash flow and reducing their working capital requirements.
What is a successful approach when it comes to implementing a successful Digital Transformation for your business?
Implementing a successful approach to Digital Transformation is a graduated, stepped approach. From acknowledging the responses necessary in firefighting mode to realizing the importance of visibility, each of these first two steps are critical to the overall process. In keeping business process as the focal point, companies can first implement their digital workflow orchestrations and then empower decision intelligence enabled workflows. Each of these subsequent steps will create a digital transformation that is business-led, with IT and procurement having key supportive and facilitating roles.
How can companies begin to jump their digital transformation hurdles and create a clear roadmap to a successful finish line?
When companies shift gears to accepting hindrances as part of the process, the true shift to digital transformation can begin. A three-pronged approach, including composability (leveraging existing functionalities both in and outside the base system), workflow orchestration (focusing on the cross-functional and collaborative aspects of the business process) and data decoupling (establishing a single source of integrated and harmonized data) can help companies see and clear the hurdles they have, creating a clearer roadmap to a successful and impactful digital transformation implementation.
Going forward, why will Digital Transformation be essential to the success of most supply chain-oriented businesses?
Digital transformation is essential to winning the supply chain race many companies find themselves competing in. Digital transformation must focus on business value and show incremental, delivery focused added value. By allowing companies to be faster and more scalable, improve the overall customer experience, increase visibility of where goods are in the fulfillment process, enhance agility and create competitive advantage.