Smart data, Anne-Tania Desmettre,
A car leasing specialist abandoned an ERP project on SAP because it felt it was inadequate for rapid technological change. A failure costing nearly $100 million. How does a company get trapped in such inappropriate and expensive projects?
The economic impact of the health crisis is causing companies to think differently about their technology direction. More than 98% of companies are planning or executing their digital transformation, but they are facing difficulties1. However, the digital market is holding up better than the average for other sectors, especially in France where 72%1 of companies plan to invest more in 2021. According to research firm Gartner, IT spending could grow by 8.4% in 2021 compared to 2020, reaching $4.1 trillion. This positive growth should continue in 2022 with investments as sustained as this year. These budgets are naturally a definite motivation for employees of structures investing substantially in IT, whether in new technologies, R&D, equipment modernization or IT services.
Think first about the profitability of the investment
It is human to feel recognized and important when committing to multi-million dollar projects on behalf of your company. The people who are in charge of them think they are in charge of strategic files. This "human adventure" allows them to learn a lot at the company's expense.
Between us, a company is not a school. Even if it is motivating to learn, it is necessary to think first of the return on the company's investment. This is all the more easy to do when the company counts among its key people autonomous profiles that put its interest before theirs. Unfortunately, the reality is much harsher.
In general, the biggest players in the market are chosen to deliver projects with large budgets. This seems to be a coherent choice for most of us. These big players are necessarily competent in the field since they have years of experience. This is very reassuring for the client who selects them, convinced that he cannot fail, accompanied by such behemoths.
"What years of experience do these big market players demonstrate in digital transformation and data exploitation? They don't have the years of hindsight and experience that could justify their added value any more than anyone else."
However, what years of experience do these big market players have in digital transformation and data exploitation? They don't have the years of hindsight and experience that could justify their added value any more than others.
Especially since digital rhymes with: agile, data, cloud, transparency, strong business expectations, constant and rapid adaptability, budget management and above all business survival. A list that doesn't really characterize the big players in the market.
Big budget projects, a guarantee of success?
According to a study by Forrester Consulting, more than 60% of digital transformation projects in companies fail. It is dangerous to build your project based on your budget. Instead, you need to analyze the best strategic, tactical and operational response and then build your budget based on that analysis.
"More than 60% of digital transformation projects in companies fail. It is dangerous to build your project based on your budget. Instead, you should analyze the best strategic, tactical and operational response and then build your budget."
At the dawn of unavoidable digital business transformations, there is little hindsight and little mastery of the subject. The approach is to learn as you go. In such a context, don't you think that the ultimate weapon becomes "common sense"? But common sense does not go well with "big budgets".