No business transformation ends at go-live. Implementation of new solutions, workflows, and processes into an enterprise’s IT stack is an on-going process, contingent upon an organization’s business transformation management strategy. Recent ASUG Research emphasizes the importance of successful and efficient transformation plans—and the potential hurdles that can derail them.
The research, conducted in July 2023 in partnership with SAP Signavio, not only provides insights into how respondents approach business transformation but also illuminates the larger role that change management plays in the intelligent enterprise. As presented during the recent ASUG Human Capital Management (HCM) Community Alliance Town Hall (Feb. 27; watch the full replay), the research underscores the benefits that change management initiatives can bring to organizations amid transformation.
ASUG Research Director Marissa Gilbert said a major goal of the research survey was to understand the major factors influencing enterprises to undertake business transformation projects. Respondents were asked to identify all the benefits that were motivating factors for their business transformations. Productivity and efficiency factors were among the popular motivators, with 58% of survey respondents saying better employee experience and productivity drove business transformation, and 58% also indicated faster access to analytics and reporting were reasons to undertake transformation.
However, barriers to transformation remain. Over two-thirds (67%) of respondents reported competing business priorities hindered transformation efforts, while 58% indicated change management efforts and 47% cited a lack of internal skills necessary to facilitate change as challenges their businesses face. To combat these challenges, respondents cited the need for better resource and skill development, change management leadership, and technology improvements, among other potential areas of investment.
The research honed in on how respondents approach SAP S/4HANA change management. Over one-third (37%) of respondents indicated responsibility for that process should fall under IT departments, while 19% said cooperative departments should be responsible and 15% indicated transformation offices should own change management.
Respondents also indicated ways transformation strategies can be improved overall. Top reported actions included:
- Improved communication: 51%
- More end-user adoption and acceptance strategies: 47%
- Better planning and preparation: 45%
- Thorough onboarding training: 41%
- Better business alignment: 38%
ASUG also asked survey respondents to share the tried-and-true business transformation strategies that result in efficient transformation projects at their organizations. The top strategies included:
- Well-planned processes: 75%
- Leadership buy-in: 61%
- Helpful teams: 57%
- Effective change leadership: 57%
- Center of Excellence (CoE) involvement: 46%
The Town Hall also provided attendees with an opportunity to comment on the ASUG Research and discuss their own experiences with business transformations. Watch the full session here.
This ASUG Research was conducted in July 2023 in partnership with SAP Signavio and surveyed 148 ASUG respondents.