Initiating Digital Transformation – big bang, hybrid, or phased approach: which is the right choice for you?
Taking that next step to digitally transform is challenging.
On the one hand, your current enterprise system is maxed out, maybe no longer supported, still on premises (which may be limiting mobile access), and frankly, just failing your organisation. It makes sense both in terms of current and future company needs to make that upgrade. In terms of costs, paying for licences and maintenance for an outdated enterprise system, is money spent ineffectively. Failures in the system could also be costing time and maybe even lost orders, customers, and opportunities.
On the other hand, making that step to digitally transform is both a huge risk and cost. There will be downtime, training, and glitches, all of which may also mean lost business. Plus, the project and implementation costs may seem VAST and unaffordable.
It’s a conundrum – and one that almost every organisation faces at some point.
What typically happens is that something will occur which pushes the risks and costs of keeping the old system going, above the costs and risks of moving to the brand-new business system. Quite often, the decision is preceded by an event that has a detrimental impact on the business. It’s really best to act before that happens.
Options (yes – you do have some!)
There are ways to proceed that might be a little less ‘painful’ than taking the big-bang approach and we cover them here.
This is the all-in approach. Sometimes there is no choice but to make this move. For some it’s an approach that makes sense for implementations involving only one or two business units.
Phased Approach by Business Unit
Few organisations these days phase implementations by business unit, but it can make sense for multi-national corporations with diverse portfolios, or companies that have acquired new businesses.
Phased Approach by Location
This may suit some decentralised MNCs and those corporations offering differentiated services and products by region; and maybe those where the quality or cost of support for systems and platforms varies significantly across different parts of the world.
This approach combines several different rollout approaches based on an organisation’s unique needs. This approach makes sense for organisations with certain business units that can handle a “Big Bang” approach and other departments that are too large and complex for this approach.
Phased Approach by Business Solution
This is the most popular approach these days, especially as most ERP systems and business applications platforms are extensible and cloud-based. Microsoft Dynamics 365 is one of the most flexible and adaptable solutions for enabling organisations to proceed in a phased, controlled manner.
Phasing digital transformation in this way means that the company and employees move to the new system in a set of predetermined steps. From a technical and organisational perspective, this is less risky as users have more time to learn and adopt the the new system. Moreover, the investment can be phased over time too. Spreading both costs and risks is always a good idea in more challenging economic times.
Which is right for your Organisation?
Working with a third-party is a good way to help you determine which transformational approach will be the best for your organisational needs, helping you to assess the risks, costs, and opportunities of each option. Often these suppliers offer industry-specific expertise too, and can help identify short-cuts, and extraneous items and services you don’t need to help you save on costs.
Moreover, if cost is really a big challenge (it often is), a good supplier will suggest ways to manage the upgrade that helps your organisation manage the transition, rather than overstrain it.
We at Dynamo Global have helped a variety of Clients with their digital transformation, using Microsoft Dynamics 365. We have implemented the solution as a ‘big-bang’, as well as hybrid implementations, and as a phased approach, depending on what was optimal for each Client. Our experience in digital transformation extends from supporting global MNCs to mid-large national corporations; we have the expertise and experience to advise YOU on the optimal choice for your company.
Dynamo Global offers a consultative and cost-effective approach too, recognising the importance, risks and costs of a digital transformation project. Our consultants will seek to deliver an optimal approach, solution, and cost to suit every Client.
Should your organisation be at the crossroads of digital transformation, wondering what the most optimal solution for performance is, as well as budget, talk to one of our senior consultants today to see how we can help.
Microsoft Dynamics 365
Microsoft Dynamics 365 is a set of interconnected, Software-as-a-Service (SaaS) enterprise systems designed to transform and enable your core customers, employees, and business activities. It is cloud based, and combines ERP and CRM capabilities, integrating data, business logic, and processes.
The solutions within Dynamics 365 are immensely adaptable to your business, as well as to specific departmental needs and can offer the customisation you need. The solutions are designed to work on their own but are better together – and can be integrated with other solutions and platforms. This means that Dynamics 365 suits every type of digital transformation from the big-bang approach to a phased modular implementation.
For more information https://dynamics.microsoft.com/en-gb/