3 Tips for Digital Transformation Success
Digital transformation is at the top of everyone’s mind. Manufacturers and distributors across the world are looking to change the way they incorporate technology into their business practices. The intention is to solve pain points, make measurable improvements and gain a competitive advantage in an intense market. 85% of enterprise decision-makers say they are under pressure to make significant inroads into their digital transformation strategies within the next two years, or they’ll suffer financially.
But digital transformation projects don’t have the best track record. 70% of digital transformation initiatives fall short of reaching their goals, and 42% of executives claim their projects are behind schedule. These numbers are far from encouraging. What is the source of digital transformation failure, and how can businesses execute critical projects without suffering costly risks? We answer these questions and provide three tips for digital transformation success.
1. Put Business Processes First
Even though the term is “digital transformation,” your strategy should really be thought of as an enterprise transformation. In other words, every decision you make should be rooted in precise business needs. One reason for failure is that digitization projects often lack direction. Businesses get caught up in the latest trends and lose sight of the core purpose: to optimize enterprise performance.
Before coming to any decisions on where to invest, undergo thorough business process modeling. Map out workflows, discuss current pain points with leaders across your organization and identify areas in need of improvement. This will help you create a digital transformation roadmap that addresses your specific goals and challenges. It will also help you set priorities, so you can take an incremental approach rather than bombard your enterprise with several projects at once.
Ultimately, every company’s digital transformation will look different. A business that is held up by data silos would benefit from software integration. A manufacturer losing track of inventory might consider ERP and IoT technology. A distributor interested in improving customer experiences could launch an eCommerce site. Just make sure each investment is intended to meet particular business objectives.
2. Head to the Cloud
Your digital transformation won’t get very far on legacy software applications. Providers withdraw support for outdated technology, prohibiting you from updating your platform and receiving maintenance. This software won’t integrate with modern solutions or support innovative features. Additionally, legacy software is usually hosted on-premises, meaning that the servers and hardware are installed and maintained on the site where the software is being utilized. This infrastructure is expensive, complex and difficult to scale.
The cloud serves as a solid foundation for modernizing your enterprise technology. Unlike on-premises software, cloud solutions don’t require investments in hardware and servers. Instead, a cloud provider offers infrastructure and resources on demand. This makes your solution flexible and scalable, so you can add devices and locations without taking on costly and time-consuming hardware installations. Your cloud provider also offers comprehensive support, maintenance and security. Microsoft Azure, for example, delivers 99.95% SLA and built-in disaster recovery, promising minimal downtime.
Furthermore, the cloud is a critical component of many cutting-edge solutions. Microsoft Azure provides a hub where you can set up IoT devices, allowing you to view real-time machine metrics from your ERP dashboards. The cloud also enables users to access data across mobile applications. By updating to the cloud, your business gains a scalable, reliable and cost-effective framework to pursue digital transformation.
3. Create a Change Management Plan
No matter how well you execute projects, your digital transformation won’t be a success if your new technology isn’t being utilized. Unexplained changes almost always create resentment in the workplace, especially if these changes disrupt how daily processes are performed. That’s why a change management plan is essential for ensuring your solutions are being adopted appropriately across the organization.
Communication is the most important aspect of any change management strategy. When users are presented with the reasons behind each project and given a chance to provide input, they are more likely to support the initiative. It’s also important to share the progress and timeline of the project, so users don’t walk in one morning to find an unfamiliar solution. Additionally, make sure each user receives role-based training and knows where to go when they have questions or concerns.
With open and clear communication, you can avoid unpleasant surprises and frustrated users. Your workplace will be ready to take part in your organization’s digital transformation.
Digital transformation has become an essential for modern manufacturing and distribution success, but without taking the proper measures, your strategies could end in failure. Let Datix help you transform your business through software. We’re an Epicor Gold Partner that has specialized in ERP for over 20 years. Epicor is committed to supporting digital transformation journeys. From cloud deployment options to new IoT technology, Epicor is always looking ahead to design ERP solutions that elevate business performance.
At Datix, our certified consultants will work with you from start to finish to maximize the value of your ERP. As a one-stop shop for enterprise software, we have a large array of solutions and services for top-to-bottom business improvements. Get on the right path to digital transformation success by contacting an expert at Datix today!