Don't Try to Build a Building When You Need to Transform Your Business

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A common and alarming statistic states that up to 70% of digital transformation projects, including major ERP upgrades, fail. If you're a mid-market business owner considering a major system overhaul, you've probably heard this before, and it's a sobering thought. But why do these projects fail so often?

Many of the failures come down to three key issues:

• Poor planning. Companies don't invest enough time and money in the discovery and planning phases.

• Lack of internal resources. The business doesn't dedicate the right internal people to the project.

• Doing too much at once. Businesses try to rip out and replace all their systems and processes at the same time.

I was once in a meeting with a prospective client, a business owner, and his son. We had a great discussion with the son about his company's plan to unify multiple departments and locations under a single ERP system. I explained our recommended agile approach, which involves a paid discovery period to create a clear roadmap and then tackling the project in smaller, manageable phases.

I explained that we couldn't provide a fixed bid because a digital transformation is not a fixed, predictable project. It's a collaborative effort that requires constant communication and adjustment. The father, who had only been listening, replied, "If I were building a building, I could tell you exactly how much it would cost."

This sentiment perfectly illustrates the core misunderstanding.

A Digital Transformation Is Not a Building

You can't apply the mindset of a construction project to a digital transformation. When you build a house, you start with a precise blueprint detailing the number of rooms, square footage, windows, and more. All the unknowns are eliminated before a single nail is hammered.

A digital transformation is nothing like that. It's not a static, mechanical process; it's a dynamic and messy one. The work involves a number of interconnected moving parts, including:

1. People. The readiness of your team to learn new systems and ways of working.

2. Processes. The way people do their jobs, often unique to your business.

3. Data. The quality and organization of your company's information.

4. Software. The final tool that brings everything together.

Notice the order? The software is last on the list. Many companies think they're buying software, but what they're really doing is updating the way their people work, how they do their jobs, and how they manage data. These are all moving targets that can't be fully known until you dig in.

The Blueprint for Success

If your business is stuck on old, inefficient systems, you may not have a choice. The advent of AI is making it essential for companies to have their data and systems organized to stay competitive. So how do you avoid becoming one of the statistics?

The key is to change your mindset. A digital transformation isn't a fixed project; it's a continuous evolution. Your business becomes a digital organism that requires constant care and investment.

To succeed, you must:

• Invest in planning. Pay for a discovery period to create a flexible roadmap. This is your blueprint.

• Go slow. Use an agile approach and tackle one department or process at a time. Learn from each phase and adjust as you go.

• Collaborate. The project is a partnership between you and your technology partner. Your team must be actively involved and invested in its success.

• Prioritize people, processes, and data over software. The technology is a tool, not a solution.

By taking this approach, you'll be part of the 35% that achieves a successful transformation and reaps the immense benefits of a smarter, more efficient business.

Whenever you're ready, here's how we can help you:

Harris Web Works is a digital transformation agency that helps supply chain partners (manufacturers, wholesalers & distributors) meet new generational buyer demands & expectations by installing streamlined e-commerce systems.

To learn more about how we can help you future-proof your business, click here.