Digital transformation – Understand the why. Shape the how.

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CxOs always focus on bringing their business to the next level. This is a relevant business ambition for their digital transformation: “understand the why” and the value-driven outcomes and then “shape the how.” These are the conversation starters that are positively impacting our client transformation boardroom discussions!

In my last blog, I focused on business ambition being the driver of SAP S/4HANA transformations with “Why should we transform?” as the central theme. In this blog, the business ambition of the enterprise takes precedence before clients think applications transformation.

“Why move” stories from 400 SAP S/4 HANA customer engagements clearly give relevant insights into the main transformation drivers across industries. C-suite execs share many common ambitions, and most reasons for transforming go far beyond the “planned obsolescence” of the IT landscape.  They are triggered by the following value cases:

  • Servitization (from customer to full service)
  • Enterprise asset management
  • Planning and efficient trading
  • Green company
  • Digital product definition
  • Responsive supply chain
  • Digital twin in operations.

But even if the benefits of these transformations are clear and supported by a strong business case, I’ve noticed that none of them are keen in embarking on a long complex program, with high upfront investments that will not bring benefits in the short term. They’ve burnt their fingers in the past with large ERP programs, and hence our first exercise is finding the right value-driven roadmap to give tangible early/short-term benefits in a low-risk, defined business scenario.

Taking full advantage of our Multi-Pillar S/4HANA Architecture (MPSA), which makes it possible to deliver the full scope of the transformation step by step, customers are able to best “shape the how” with business-driven decisions. No more Diplodocus cycles for delivering long-lasting programs. Instead, there is cross-collaboration with all actors – and that’s the recipe for rapid value. It requires Agile/DevOps skills and transforming mindsets is key for success.

Neither the “why” or the “how” can be answered without multiple towers and competencies working together. As an example, industry specialists need IT architects who need line of business experts with an exceptional understanding of SAP with facilitators who can drive change management.

With Capgemini’s Renewable Enterprise, we have helped hundreds of customers get the best out of their SAP S/4HANA transformation: assess a valuable “why,” and shape the best “how.” An assessment focusing on business ambitions and levers, translating them into achievable target business models, operating models, and a modular architecture possible with S/4HANA, our Agile roadmap delivers business value faster. To find out more, contact me directly!


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