Birchman

11 Nov 2022

How Can Organisations Drive the Right Outcomes from Their Digital Transformation Programme?

When a UK-based retail group attempted a large-scale digital transformation programme, they realised midway that although new systems were being deployed, the expected outcomes, like better customer visibility, improved reporting, and faster decision-making, were not being achieved.

After reassessing their approach, they discovered that they had focused heavily on technology decisions and not enough on building a clear digital transformation roadmap for the business.

This is a common challenge many organisations face today.

With ever-changing processes, expansions, acquisitions, and new technologies, digital transformation has become an increasing priority for businesses looking to achieve their strategies, priorities, and goals. Then COVID hit, and everything changed. It intensified the need for digital transformation and required businesses to become more agile.

A digital transformation programme is a structured and organisation-wide initiative where business change is enabled by technology. It includes strategy, operating models, governance, processes, and people and not just IT systems.

In a recent interview, when asked how organisations can drive the right outcomes from their transformation programme, Richard Taylor, Partner at the Birchman, addressed the threats businesses face and the challenges they need to overcome in order to be successful in their digital transformation. You can hear Richard’s full response in the video below:

Full transcript of the video:

From an opportunity perspective, you’ve got things like new products and services, new business models, international expansion, acquisitions, etc. And, from a threat perspective, you’ve got things like COVID, supply chain challenges, new competitors in the marketplace, regulations, and cybersecurity.

And so, with digital transformation, which we define as being business transformation enabled by technology, your overall objective is to put a business transformation framework in place that enables you to become more agile. What we see as being some of the challenges is that, quite often, because the word digital implies technology, organisations run digital transformation as a technology-orientated and led programme and not a business transformation programme.

This is one of the key challenges in digital transformation programmes. When technology leads the conversation, business outcomes can become unclear or inconsistent, making it harder to measure success.

So, our recommendation is that first of all, to be very clear on where you’re going as an organisation both in terms of business strategy but also, what are your priorities, what are your goals as an organisation and how does that translate into a future or target-operating model?

And again, we see organisations are quite clear in terms of where they are going, but not necessarily the operating model that they’re trying to get to. So, we recommend being very clear from that perspective.

A clearly defined digital transformation roadmap for businesses helps make sure that strategy, operating models, and technology investments are aligned. Without this, transformation efforts often lose direction.

The second recommendation is that business leaders owning digital transformation in their respective areas, enabling them to drive the improvements and also reap the rewards of it.

IT is still playing a supporting role, but the business is taking ownership of applications and the digital transformation elements.

But you may need an enterprise architect to put all these elements together to make sure they all hang together properly, but that’s a key principle from our perspective.

How can Birchman help with your Digital Transformation?

At Birchman, we help customers define their digital transformation strategy and roadmaps to deliver business change and transformation.

Our approach focuses on helping organisations shape a digital transformation programme strategy that is grounded in business outcomes, supported by the right operating model, and aligned with long-term organisational goals.

As an SAP platinum partner, we couple our Digital Transformation expertise with industry-leading knowledge and SAP experience to drive business-wide change. If you’re ready to begin your digital transformation journey, speak to one of our digital transformation experts here: https://birchmangroup.com/contact

FAQs

Question #1: What is a digital transformation programme?
Ans: A digital transformation programme is a structured effort where organisations redesign processes, operating models, and ways of working, with technology acting as an enabler rather than the primary driver.

Question #2: Why is it important to focus on outcomes rather than just technology?
Ans: Technology alone does not deliver value. Clear business outcomes ensure that investments are meaningful, measurable, and aligned with organisational priorities.

Question #3: What are the most common pitfalls in digital transformation, and how can they be avoided?
Ans: Common pitfalls include unclear objectives, lack of business ownership, focusing too heavily on technology, and insufficient change management. These can be avoided by defining a clear roadmap, setting measurable outcomes, and ensuring business-led decision-making.

Question #4: How do you measure success in a digital transformation programme?
Ans: Success can be measured through improvements in efficiency, customer experience, process performance, employee adoption, and alignment with strategic goals. Metrics should be agreed upon before the programme begins.

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