WHY IS THERE SUCH A HIGH FAILURE RATE IN BUSINESS TRANSFORMATION TODAY?

The true number of business transformation project failure is underreported. Depending on which research you follow, the figure is between 70% – 80% of business transformation projects end in failure. There is five (5) main causes in business transformation failure are – lack of stakeholder involvement, lack of senior stakeholder support, changing requirement, incomplete requirements and poor planning.

WHAT IS WRONG WITH EXISTING APPROACHES?

Nothing. They are good at the purpose they were designed for, except they are now used for a different purpose, and that is not the original purpose they were designed for. Look at TOGAF® (The Open Group Architecture Framework) for example – it’s a framework for managing ‘technology’ or ‘technology changes’. It is not surprising, it was written by a “technology standards company”. They know and understand technology. What is happening is, TOGAF® is being used in business transformation projects that the ‘framework’ to manage the ‘transformation’, but it only focuses one thing – technology. It doesn’t focus on anything else other than Technology (it almost completely ignores, the other two (2) important aspects of the organisation – People, and Process(es)). It also ignores how to transition the business from the current state, to its desired future state. It effectively put the Technology stakeholders in the drivers set, to dictate to the Business what they think they want and literally throw it over the fence to the Business for them to work out if first it is fit for purpose, and then how to use and implement it.

HOW DOES HOBA® SOLVE THE PROBLEM IN BUSINESS TRANSFORMATION TODAY?

HOBA® solves the 70% failure rate in business transformation problem by addressing the causes that problem in the first place – by putting the Business back into control, to take control back from Technology and into their own hands, using a structured process and framework that was developed WITH the Business, BY the Business, to be USED and OWNED by the Business, putting the control back into their own hands.

WHAT IS THE BIGGEST PROBLEM WITH BUSINESS TRANSFORMATION PROJECTS AND HOW DOES HOBA® HELP?

The biggest problem with business transformation projects is firstly the name. “Business Transformation” is incorrectly called or referred to as “Digital Transformation”. ‘Digital Transformation’ is a misnomer, it is not ‘digital’ per se that is ‘transforming’, it is the ‘Business’ that is transforming, and how it does or is doing that in this period of time is via ‘digital technologies’ (if ‘technology’ isn’t already digital, what were they before?). What this intentional confusion in the marketplace is causing, is it causes is an incorrect bias and focus on the ‘technology aspect’ only of the transformation, which by doing so completely ignores the Business aspects – that’s the Business Operations Stakeholders and their concerns, and the Processes those stakeholders carry out. HOBA® helps by putting the Business back in to control, to be very clear and structured with what is the Vision, Strategy, Objectives and Measures, what stakeholders are involved and need to be involved in the transformation and their decision making authority, the process to manage those decisions, scope and risks; what are the problems they want to address or opportunities they want to take advantage of; what benefits they want to realise from the transformation and when; what the future or Target Operating Model (TOM) needs to look like to achieve their Vision and Strategic Objectives and business benefits, and how and when will the changes be implemented. Everything and nothing more, only doing what needs to be done, to transform the business, not doing what is happening in the marketplace today and that is ‘creating reams and reams of colourful models and diagrams, that while beautiful, are in reality just “interesting but (sadly) useless”.

WHAT IS THE DESIGN PROCESS?

The Design Process is the 6-Step process used to implement HOBA® and manage the transformation from the very start, to the very end, implementation.

WHAT IS THE BIGGEST MISCONCEPTION IN THE MARKETPLACE?

The biggest misconception in the marketplace today with business transformation is that Clients are led to believe that they need ‘reams and reams’ of pretty colourful presentations to transform your business. This is a fallacy. This only creates expensive shelf-ware. What those ‘pretty presentations’ are designed for is to enable the transformation project to keep moving toward its end goal, transforming the Business. What the Clients are led to believe is those ‘pretty presentations are the actual goal of the project, and often celebrated and hang up on the project office wall with great bravado as if they were the goal of the transformation itself! What those ‘pretty presentations’ actually need to be is two (2) things – first, is they need to be understandable, and written in a language that the Business understands, so first they can understand what it and they mean, and then they can agree to it. Then second, then they need to be useful. A lot of Consultants and Consultancy’s wanting to impress their clients with great marketing, pretty presentations and long list of impressive acronyms and latest “it” words, but this just confuses the Client. What happens is the Consultants will present their ‘ideas’ (because that’s what they are, they have had one meeting with the Client, interpreted that into their own words and perspectives, and come back to them several weeks and months later, having not consulted with them through the process, thinking ‘they know their Clients business best (they don’t, the Client does!) and play back their 300+ page power-point presentation that looks impressive), they present it to the Client, the Client has no idea what it means or says (its written in a foreign language, literally), due to the time it’s taken, and the money it has cost at that point, the Client agrees to it in the room, then walks out the room, and completely ignores everything the Consultant(s) said. The transformation goes nowhere. HOBA® solves that problem, refer to the first question above.

HOBA® is trusted by the UK Government, FTSE-100 companies and start-ups to both set up, and also turnaround their failing transformations. HOBA® is used by thousands around to transform their business, and was made public for the first time in late 2018, after over 10+ years in use with private clients, published in The Business Transformation Playbook – How to Implement Your Organisations Target Operating Model (TOM) and Achieve a Zero-Percent Failure Rate Using the 6-Step Agile Framework’, reaching bestseller on Amazon in 6-categories including Project Management and Consulting, and made it onto the Best Business Strategy eBook List of All Time by BookAuthority, at no.30 (March 2021). See News for details.

CAN I READ A PREVIEW OF THE BUSINESS TRANSFORMATION PLAYBOOK?

Yes, you can download a FREE preview to The Business Transformation Playbook here.

The Death of Traditional ERP Systems: Embrace a Business-Led Approach for Business Transformation

By Heath Gascoigne
July 15, 2024
Business Transformation, Enterprise Architecture
Post Views: 521

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In the ever-evolving landscape of business technology, traditional ERP (Enterprise Resource Planning) systems are increasingly seen as relics of the past.

As new, more flexible, and cost-effective tools emerge, businesses are reconsidering their reliance on these cumbersome systems.

This shift is driven by a business-led approach, which prioritizes understanding and addressing business issues before diving into technology solutions.

In this post, we’ll explore why traditional ERP systems are becoming obsolete, and how adopting a business-led approach can lead to more effective and adaptable business transformations.

Heres what we’ll cover (click the links to skip to the section below):

NB – Click to expand images 📸

Understanding the Business-Led Approach

The business-led approach is a strategic methodology that focuses on identifying and solving business problems first, rather than immediately jumping to technology solutions.

This approach contrasts sharply with the traditional technology-first mindset, which often leads to mismatched solutions that don’t address the core issues businesses face.

By prioritizing business needs, organizations can ensure that any technological implementation is truly beneficial and aligned with their goals.

The Current State of Traditional ERP Systems

Traditional ERP systems have long been the backbone of business operations, integrating various functions such as finance, HR, and supply chain management into a single cohesive system.

However, these systems come with significant drawbacks. They are often expensive to maintain and upgrade, lack the flexibility needed to adapt to modern business needs, and pose integration challenges with newer, more agile technologies.

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🌟 "🚀 Traditional ERP systems are becoming relics of the past. Embrace a business-led approach to revolutionize your business transformation! 🌟 #BusinessTransformation #ERP #Innovation

Heath Gascoigne Tweet

Why Traditional ERP Systems Are Becoming Obsolete

Several factors contribute to the obsolescence of traditional ERP systems:

1. Cost: The high cost of maintaining and updating traditional ERP systems is a significant burden for many businesses.
2. New Technologies: The market is now flooded with versatile and cost-effective tools that offer better functionality and flexibility.
3. Lack of Flexibility: Traditional ERPs are rigid and difficult to customize, making it hard for businesses to adapt to changing needs.
4. Integration Challenges: Traditional ERPs often struggle with integrating new technologies due to a lack of open API compatibility.

The Rise of New Technology and Tools

The technological landscape has evolved, bringing forward tools that are not only more affordable but also more adaptable. Examples include:

These tools surpass traditional ERP systems in terms of functionality and ease of integration, making them a preferred choice for modern businesses.

The Future: Hub and Spoke Model

The hub and spoke model represents the future of business technology.

In this model, a central system (the hub) integrates with various niche-specific systems (the spokes), allowing businesses to leverage specialized tools while maintaining a cohesive operational framework.

This approach provides greater flexibility, scalability, and functionality compared to traditional ERP systems.

🔧 "Lack of flexibility and high costs are making traditional ERPs obsolete. Discover new, versatile tools that offer better functionality and integration". 💡 #FutureOfBusiness #TechInnovation #DigitalTransformation"

Heath Gascoigne Tweet

The Path to Transformation

Transitioning from traditional ERP systems to modern solutions involves several steps:

1. Evaluate the Current State: Understand the current state of the organization and identify existing problems and opportunities.
2. Identify Business Issues: Focus on solving business problems first, before considering technological solutions.
3. Implement Changes: Introduce changes in people, processes, technology, and data to align with business needs.
4. Adopt New Technologies: Embrace new tools and technologies that offer better flexibility and integration capabilities.

Looking for the Upskill and Join the Top 30%? Everything you just read in this post is covered in here plus so much more! 👉

💡 "The hub and spoke model offers greater flexibility, scalability, and functionality. It's time to transition from outdated ERP systems to modern solutions!" 🚀 #BusinessStrategy #TechEvolution #AdaptAndThrive

Heath Gascoigne Tweet

Conclusion

In conclusion, the era of traditional ERP systems is coming to an end. As businesses strive to stay competitive and adaptable in a rapidly changing environment, it’s crucial to shift towards a business-led approach. By prioritising business needs over technological solutions, organisations can ensure that their technology investments truly support their goals.

The hub and spoke model, with its flexibility, scalability, and enhanced functionality, represents the future of business technology. New tools and technologies like OpenAI for LLM, automation tools, and chatbots are not only more versatile and cost-effective but also easier to integrate, making them superior alternatives to traditional ERPs.

Embracing this transformation involves evaluating your organisation’s current state, identifying business issues, and implementing necessary changes in people, processes, technology, and data. By doing so, you can ensure a smooth transition to a more efficient and adaptable business model.

To learn more about how HOBA Tech can help you navigate this transformation, visit our Free Resources page. If you’re ready to discuss how we can assist you in revolutionizing your business, don’t hesitate to contact us.

Stay ahead of the curve and embrace the future of business technology with HOBA Tech!

Thank you for reading this!

Sincerely,

Heath Gascoigne

P.S. If you want to join our Business Transformator community of 2,000+ like-minded Business Transformators, join the community on the Business Transformator Facebook Group here.

P.P.S. If you want to learn more about business transformation, check out The Business Transformation Playbook here.

For more information, visit https://www.hoba.tech

Heath Gascoigne

Hi, I'm Heath, the founder of HOBA TECH and host of The Business Transformation Podcast. I help Business Transformation Consultants, Business Designers and Business Architects transform their and their clients' business and join the 30% club that succeed. Join me on this journey.

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The Death of Traditional ERP Systems: Embrace a Business-Led Approach for Business Transformation

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Table of Contents

Understanding the Business-Led Approach

The Current State of Traditional ERP Systems

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