Why transformation projects fail

Projects fail, budget plans do not correspond to the actual expenditure required and employees are frustrated because the promised progress does not materialize. Scenarios that occur daily in many companies. But what exactly are the reasons behind this? And how can companies ensure that their transformation does not become a stumbling block, but a sustainable success?

Reasons for failure

The main reason is still the underestimation of the complexity of a transformation. Those responsible often start their transformation projects without having a clear overview of all the processes and IT systems involved. In many companies, previously implemented and correspondingly grown in-house developments, decentralized structures and multiple SAP instances have created a landscape that is difficult to harmonize. Instead of uniform standards, the result is a patchwork that takes much more time and resources to standardize than originally assumed.

In addition, there are gaps in the cooperation between IT and the relevant specialist departments within companies. SAP transformations inevitably affect every sector of an organization, not just the technological part, as is wrongly assumed. If no unity has been formed between all departments and IT in advance, the transformation often ends in solutions that, on balance, fail to meet the actual needs of future users.

Another weak point is change management. Transformation inevitably means change. However, many of those involved initially resist change. Employees predominantly lack the essential understanding of the necessity and the resulting applicable benefits of the transformation. If all those involved are not involved right from the start, there is a considerable risk of slowing down the process or even causing it to fail. The same applies in the event that no comprehensive clarification is provided or questions remain unanswered.

In addition, transformation projects are jeopardized by a lack of prioritization and resources. Operations take priority in many companies, with the result that the key decision-makers do not have sufficient capacity for the transformation. At the same time, projects are competing with other strategic initiatives for scarce budgets and human resources - a dangerous mix that can have a massive impact on success.

Decisive phases

Despite the aforementioned challenges, SAP transformations are by no means regularly doomed to failure. The key lies in a well-organized approach that takes all decisive phases into account. It all starts with a clear strategy and objectives. Companies need to ask themselves what they want to achieve with the SAP transformation and to what extent it fits into their long-term corporate strategy. Only with a precise definition of objectives can a vague idea become a measurable project.

The planning phase involves laying the foundations for success, focusing on a detailed analysis of current processes and systems in order to identify overlaps, redundant structures and potential for innovation. On this basis, a roadmap is developed that defines the timeline, responsibilities and strategic milestones in order to give the project the necessary structure and clarity.

Sensitive implementation

Once the plan is in place, implementation can begin. This is probably the most sensitive phase, as the individual steps now make it clear time and again how well the initial planning was carried out. Smooth processes within the SAP
No one should expect transformation. Minor adjustments are the least that companies can expect.

However, it is precisely these adjustments and results that are important in order to rethink the planned process at an early stage or to be able to continue with a clear conscience. Experienced transformation consultants are on hand to help the respective companies in this phase to identify initial problems or make necessary adjustments. If individual processes falter or even come to a standstill, a coherent recovery strategy is required. Specialists with the appropriate expertise can analyze the causes, make quick decisions and thus get the project back on track. This point should not be underestimated to ensure that the financing remains in place and the planned result is successfully achieved.

The use of SAP standards should generally reduce in-house developments to a minimum in order to increase systemic adaptability. Companies are increasingly relying on cloud technologies to provide them with additional agility and scalability.

Big bang or iterative?

A central question that regularly arises in many companies is: What is the best way to implement the transformation? In small steps or as the well-known "big bang" to standardize all systems directly with each other? At this point, caution is advised when making quick decisions, because in addition to the willingness to take risks, the available resources also play a major role. Not every company can simply cope with a big bang. In any case, a well thought-out approach is required that represents a good path for everyone involved.

The success factors

SAP transformations only succeed if certain success factors are consistently taken into account. First of all, it is important that the strategic management cooperates with experienced partners. Decision-makers must set out a clear vision and ensure that everyone involved supports the requirements. At the same time, consultants are needed who can combine the technology and business processes in such a way that everything is tailored to the individual needs of the company.

Transparency and communication then take center stage. All project phases must be clearly communicated both internally and externally so that employees recognize the purpose and benefits of the changes. Only those who understand why the transformation is necessary will actively participate in its successful implementation.

The innovation lever provided by S/4 Hana also opens up new possibilities - from automation and artificial intelligence to process analyses. Companies that strategically integrate this potential create the desired basis for long-term and sustainable success.

The process is rounded off with agile project management. Alternative approaches allow goals to be achieved at an early stage, risks to be minimized and a flexible response to any changes that arise.

What to do now

In order to make an SAP transformation successful, companies need to understand their own status quo. The comprehensive clarification of existing processes and systems and the clear identification of pain points increase the chances of future harmonization.
At the same time, the selection of the right transformation partner is also an issue. Implementation partners and consultants should not only be technically and professionally adept, but should also fit in culturally with the company. This is the only way to create mutual understanding and a productive working environment for maximum success. After all, the focus is on decades of a successful future, not short-term efficiency gains.

Transformation as an opportunity

Despite all the challenges and planning steps, SAP transformations are a great opportunity. They allow companies to fundamentally optimize and change business processes and exploit dormant innovation potential. Those who see the transformation as a strategic project, plan carefully and rely on the right partners can create a solid foundation for growth and competitiveness from the change - and thus set the course for a successful future.

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