A study by Natuvion shows that nearly half of medium and large companies surveyed are not fully achieving their transformation goals. This is offset by goals such as increasing quality, process reliability and future viability. […]

The company Natuvion, specialized in digital transformation, has in one study examines the goals and success factors of a digital transformation of core systems in medium and large companies. The results show a large gap between the desired goals and the actual success of the transformations. Nearly half of the companies surveyed by Natuvion, 50 percent of which are from the core industries of automotive, life science and energy supply, confirm that they have not fully achieved their transformation goals, even though the projects were executed on key objectives: nearly 65 percent of those surveyed wanted them to increase quality and process reliability, more than 57 percent aimed to improve future security.

“The discrepancy between wish and reality when it comes to digital removals is striking. Not every transformation ultimately led to the result that the companies had in mind. Projects are often seriously delayed or costs explode. Some transformation projects even have to be halted or in the worst case reversed. As a result, companies not only lose valuable time, but also part of their investments. They also gamble with their future viability, which can have fatal consequences in disruptive markets,” explains Patric Dahse, founder and director of Natuvion.

No clear direction without planning

More than 30 percent of the companies surveyed indicate that no analysis has been performed in the transformation process and that almost as many companies have not checked the data quality. This could be one reason why some transformation goals have not been fully achieved. In addition, the lack of know-how in the own company could contribute to the unsatisfactory results. In this context, more than 35 percent of companies indicate that they only discovered the knowledge gaps during the course of the transformation. Nevertheless, more than 52 percent of those surveyed focus on building more competence as an organizational measure. A response to this is that more than 32 percent of companies would be more likely to consult external advisors in the future.

The research shows that companies sometimes set priorities differently in future transformation projects. Nearly 44 percent would first handle the most important processes to run after the migration if they were going to undergo another transformation. This indicates that in the past, companies have focused on too many aspects at once in their transformations, or have misprioritized. Another aspect suggests that companies underestimate the nature and costs of transformation. Nearly 40 percent of those surveyed would generally be more likely to tackle the topic, and nearly 33 percent would secure the support of key decision-makers and influencers.

Preparation is key

With the help of preliminary projects, a detailed as-is analysis can be made, also to derive the concrete goals and the transformation scenario. In addition, the potential paths and possibilities of the transformation can be explored at an early stage, the goal can be precisely defined, the optimization of databases and processes can be determined and the sequence of the necessary steps before, during and after the actual transformation can be determined. determined. can be defined.

However, preliminary projects also serve to weigh up risks, such as the duration of business stagnations. 16 percent of the companies surveyed stated that they use such critical systems – for example in online commerce or in international business – that there can be no business interruption. 62 percent take into account a possible business interruption of up to a few hours, a working day or a weekend.

The constant requirement for core systems to run around the clock increases the pressure on deciding which transformation scenario (brownfield, greenfield or selective data transition) is optimal. The study confirms this impressively. When asked what would have happened if the companies had taken a different path during their transformation, more than 45 percent cited higher costs and serious process changes and more than 41 percent cited incompatibility with new systems.

100 percent greenfield and brownfield migration is largely obsolete

The research also clearly indicates that the classical transformation methods such as Greenfield or Brownfield are becoming less and less important. “One-dimensional migration methods are rarely performed strictly by definition. When planning the transformation, it usually becomes clear that a mix of different methods is the sensible and promising approach,” explains Patric Dahse. After all, about 50 percent of the medium and large companies surveyed indicate that they strive for a selective data transition and only occasionally the one-dimensional path of greenfield (all data and processes have been completely restructured) and brownfield (all data and processes are fully preserved). to follow. Only 21 percent opt ​​for a pure greenfield transformation and 29 percent for a pure brownfield transformation.