In today’s business world, most transformations are indeed digital ones because they require new investments in technology and tech-enabled processes. Business transformation is a frequent term in corporate conversations, but what is it, and does it drive value?
Let’s start with the definition. Business transformation helps organizations use technology to rethink and restructure operations to drive significant improvements in performance, efficiency, and stakeholder value. It encompasses changes across business planning, operations, technology, development, and customer experience. The goal is to adapt to market shifts, embrace digital innovation, and stay competitive. Transformation initiatives may focus on adopting modern technologies, revamping operational processes, or aligning with environmental, social, and governance (ESG) criteria. Successful transformations require a clear vision, strong leadership, and a willingness to embrace change at all levels of the organization.
Per Gartner, 53% of CEOs say their digital transformation is only just starting or is less than half done.1 Is there any proof that these business transformation initiatives are working? A Harvard Business Review article, The Value of Digital Transformation, looks specifically at the banking industry and concludes yes: “Digital leaders are creating much more shareholder value than laggards. Between 2018 and 2022, digital leaders achieved average annual total shareholder returns of 8.1% vs. 4.9% for laggards.”2 The article goes on to state that the effort involves the constant digital attention of an entire company, not just one department or for a “special project.” While the effort is significant, so is the payoff.
Business transformation: laying the foundation for AI and more
At Alithya, business transformation is a part of our enterprise transformation services that help align an organization's people, processes, and technology with its vision, strategy, and goals. We’ve helped an estimated 50% of our clients on their business transformation journeys by implementing or modernizing foundational enterprise business applications such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Enterprise Performance Management (EPM), Human Capital Management (HCM), and Supply Chain Management (SCM).
These projects typically span multiple functions within an organization. Because of the business data captured within enterprise applications, having these systems in place is fundamental to enabling other downstream advanced technologies such as artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). These systems power insights, streamline business processes, and automate manual tasks to drive operational efficiency and growth.
We typically encounter two types of transformation opportunities: “Little t” and “Big T.” “Little t” projects usually involve transforming a single business function, like an Oracle EPM application, which largely impacts the finance team, or Microsoft Dynamics CRM, which typically involves sales or service departments. “Little t” projects often drive incredible value for an organization within a single function.
However, as referenced in the Harvard Business Review article earlier, it’s the “Big T” projects that truly transform multiple, integrated functions or pillars of the business (think finance, operations, supply chain, human resources, etc.). Gartner confirms that 6 in 10 transformations are enterprise-wide.3 “Big T” projects often take longer and are more strategic in nature, but these wide-but-deep initiatives are the ones delivering the measurable, game-changing results that everyone expects from real digital transformation.
Industry-specific experience for faster, meaningful results
Industry expertise is crucial in any form of digital transformation because it provides the necessary context for effective decision-making and strategy formulation. Professionals with deep industry knowledge understand the unique challenges and opportunities within their sector of expertise, allowing them to tailor digital solutions that are most relevant and impactful. For instance, industry experts can foresee how digital technologies like AI, Internet of Things (IoT), or cloud computing can solve specific problems or enhance efficiency in ways that generic solutions cannot. Moreover, industry expertise ensures that digital transformations align with regulatory requirements and industry standards, which is essential for compliance and competitive advantage. This specialized insight is invaluable in navigating the complexities of digital transformation, ensuring that investments in new technologies yield tangible business benefits and sustainable growth.
Alithya’s business transformation expertise for enterprise applications includes deep, industry-specific knowledge. We’ve helped organizations with our broad portfolio of industry and outcome-specific accelerators. For example, we offer specific solutions for capital portfolio planning and strategic modeling as well as healthcare data consolidation and enhancement with AI-driven accelerators to accompany Oracle implementations. For Microsoft, we have industry accelerators and AI-driven accelerators that provide predictive analytics to help guide sales strategies or optimize service delivery. And for both Oracle and Microsoft implementations, we have quick-start templates that can help reduce project duration – leading to faster ROI.
Alithya: your trusted advisor for business transformation initiatives
If you are looking for a partner to help with your transformation journey, consider three key areas that set Alithya apart from other technology services providers:
- Big Four expertise with Alithya agility. Our talent, change management, and project management methodologies deliver transformation projects like that of a big four consulting firm but with greater agility and flexibility. This means we can adapt to our clients' needs, offer more personalized services, and deliver quicker results. We also deliver exceptional industry-focused services and solutions without the premium price tag typically associated with larger firms. As part of our approach, we leverage our smart shore strategy, which allows us to optimize talent acquisition and pricing through enhanced global delivery capabilities.
- Multi-pillar (cross departmental) experience. Unlike many other firms outside of the Big Four and Global System Integrators, Alithya has the expertise to deliver large enterprise-wide, multi-pillar projects, including the program management and change management services required for success. We start by understanding your complex business challenges and then develop the right approach to meet your short and long-term goals. And most importantly, we will not implement and walk away. We lay track to help you get to your next destination, ensuring real results long after implementation.
- Preferred Microsoft and Oracle business application partners. Feel free to judge us by the partner company that we keep! Our decades-long relationships with Oracle and Microsoft and detailed knowledge of their systems have shaped the evolution of their technologies while better serving our shared customers. In fact, a lot of the process manufacturing and distribution functionality in Microsoft Dynamics 365 was acquired from Alithya. We have long been a contributor in an advisory role to the Oracle Product Development team and count many Oracle ACEs in our ranks. Alithya's industry experience and talent resources continue to inspire trust from our partners and clients.
In summary, in a fast-paced environment where digital opportunities and technology are ever-changing, it takes constant effort to keep business applications like ERP, EPM, CRM and SCM current so you can stand out from your competitors. As a trusted implementation partner, Alithya helps its clients evolve and transform their business applications for enhanced flexibility and adaptability, refined operations and increased efficiency, improved customer experience, and more. Are you interested in learning more about pursuing business transformation initiatives at your organization? Contact us today to get started.
Sources:
1 2024 CEO Survey – The Year of Strategy Relaunches, Gartner, May 2024.
2 The Value of Digital Transformation, Harvard Business Review, July 2023.
3 Enterprise Transformation Enablement Primer for 2024, Gartner, August 2024.