Fail 3: Assuming that all business value is operational and static
No business can afford to stand still and start gathering moss. Many organisations assume that the value of transformative technologies like enterprise resource planning (ERP), or customer relationship management (CRM) software are limited to operational efficiencies such as time savings, resource optimisation, error reduction, etc. This is, however, not the case.
Businesses tend to generate more bottom-line value by focusing on growing net revenue, rather than trying to improve operational efficiencies. They also achieve better sales team performance, the ability to bid for more business, improved net promoter scores (NPS), winning more deals and keeping customers for longer.
In other words,
by defining business value as something more than saving time and money, and making these the targets of the transformative project, companies are more likely to reach the high-hanging fruit that will have a material impact on the bottom line.
As mentioned above, clearly stated goals is the bedrock of any successful digital transformation program. These goals are what will ultimately determine the value of the transformation. But, and this is important to remember, the value of the project can’t be measured just once at the start and end of a project. Value is dynamic in the same way businesses constantly grow and evolve and should therefore be measured continuously, so that the application of a new technology, for example, stays as beneficial at the point of go live as it does on its one, two or five-year anniversary. Seen from this vantage point, it should be clear that digital transformation is not to be conceived of as a one-off project.
“Define business value as something more than saving time and money and make this the target of the transformative project.”