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Five Reasons Why Your Company's Digital Transformation Efforts are Failing

Jul 26

At its core, digital transformation is a simple concept. Digital transformation is the process of migrating your business's analog data, legacy systems, and manual processes to a single modernised cloud-based platform. It enables you to analyse huge swaths of data in unique ways to maximise efficiencies, reduce costs, and deliver a better customer experience.

Of course, implementing a cloud-based ERP system as part of an overall digital transformation effort is a huge undertaking. In fact, an astonishingly low 16% of executives describe their firm’s digital transformation efforts as “successful” according to research from McKinsey & Company.

 Why exactly is the digital transformation success rate so low? At Pinnacle, we can think of 5 reasons. 

  1. No C-Suite Support: The success of any digital transformation effort starts at the top. A digital transformation project needs at least one true believer (ideally more) within the C-Suite to cheerlead for the project and convince their peers that it’s a crucial endeavor that will yield positive results. Without that person stepping on the accelerator, the entire project will most likely run out of steam.
  2. Employee Ennui: Just as you need support from the top down, you also need support from the bottom up. After all, employees are going to be the ones working with the system day in and day out? If they aren’t excited and onboard for the change, then it’s going to be tough to succeed.

 

One way to combat this is to gather employee feedback about their features or expectations from the ERP system. Employees will feel valued knowing that their opinions are helping shape the larger initiative.

Another key to keeping employees engaged is frequent and transparent communication. Leadership needs to let employees know what the benefits are to the company and to them. And, repeat those messages often. 

  1. Surprise, change is hard: Another reason why it’s so challenging for companies to make the analog to digital switch is simply that we, as humans, find change hard. We’re creatures of habit and enjoy what’s familiar to us even if there are better options available.

 

It’s the same reason we long for our way-outdated mobile phone after getting the latest model. We know the new one is better, but we’re so comfortable with the old one.

Again, leadership is key to overcoming this challenge. They need to continue to be the cheerleaders of change. In addition, ensuring that all employees are properly trained and have ongoing technical support after the switch can help increase confidence and enthusiasm among the workforce.

  1. Refusing to go “all in.” This is kind of a continuation of number 3. Some companies may implement an ERP, but not be quite ready to “rip off the bandage” and consequently wind up running several disconnected legacy systems alongside their brand-new ERP. This can create a situation where some employees are using the legacy systems, others are using the new ERP and others toggle between the two. This can even cause more work and confusion as employees sort through conflicting and/or redundant information and can completely jeopardize the rollout of the new solution.

 

Under certain circumstances having your legacy systems running parallel to your new ERP for a limited period of time is fine. To fully retain customer and employee buy-in, there must be a definite date and process for sun-setting the legacy system and going fully digital. 

  1. Not having the right partner: Choosing the right partner to help implement your ERP system is just as important as choosing to undergo digital transformation in the first place.

 

Pinnacle is an Acumatica Gold-Certified Partner and the UK & Ireland’s leading business solutions provider. We are ready and able to get your Acumatica ERP system into place, configure it to your specific needs, and keep it running smoothly. Acumatica is an award-winning Cloud ERP solution that can be tailored to your business, thereby accelerating your return on investment, and decreasing the time spent training employees.

If you would like to learn more about cloud-based ERP software or to schedule a free Acumatica demo, contact our team today! You can also join our  "Acumatica Lunch & Learn", online demonstrations to learn about Acumatica, The Cloud ERP, while enjoying lunch on us.

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