December 8, 2025
Digital transformation is one of the riskiest undertakings an organization can attempt. Despite this, many executive teams still think of it as a mere “upgrade.” In practice, failures rarely result from software errors. Most often, they occur where technology has no impact: in strategy, structure, processes, and accountability.
- Why shouldn’t digitalization start with the question: “Which system should we implement?”
The most costly misconception is treating digital transformation as an IT project. Technology is just a tool and is the least important factor for the initiative’s success. Without a clear definition of processes, operational model design, a cohesive strategy, and proper resources, the organization does not transform; it merely modernizes chaos. Digital transformation is business transformation, and only when the board understands this does the project gain solid foundations. - Change hurts more than anyone anticipates
Most executives assume that since the system is old, the processes are inefficient, and the team is aware of the problems, the change will be natural. This is one of the biggest mistakes. Organizational resistance is inevitable and always stronger than predicted. The status quo has a gravity that constantly pulls the company back to old habits. Only conscious, consistent change management allows the company to break free from this gravity and move into the future. - Projects fail when leaders think someone else will lead them
Many executive boards make the same mistake: they try to hand over responsibility for the transformation’s success to the project team, system integrator, or consultants. This never works. Only the project sponsor has the mandate and decision power to see the transformation through to the end. It is the executives who set the vision, expectations, success metrics, resources, and pace of change. When they try to avoid this, the project begins to drift and quickly loses direction. - Project control begins where outsourcing ends
The most critical elements of transformation cannot be outsourced. The organization must own data migration, change management, process optimization, and overall program oversight. Otherwise, it loses control, becomes dependent on vendors, and gradually hands over key decisions to them. Projects that achieve the best results invest in people and competencies, instead of relying on external consultants to do the work for them. - Lack of alignment at the top always ends in chaos at the bottom
If executives do not share a common vision for the strategy and its translation into transformation goals, the project quickly begins making contradictory decisions. Alignment is a process that involves analyzing alternatives, defining the balance between centralization and decentralization, between big change and incremental change, and between internal actions and outsourcing. Paradoxically, a pause in the project, used to achieve alignment, often accelerates implementation rather than delaying it. - Observers do not deliver transformation, leaders do
The steering committee often becomes a reporting venue when it should be the most important strategic decision-making body. This is where the direction is set, goals are defined, scope changes are approved, schedule and budget decisions are made, and risks are assessed and mitigated. A committee that acts slowly blocks the entire project. A committee that acts quickly and consistently is one of the greatest accelerators of transformation. - A project lives or dies in the hands of the right sponsor
Most projects fail because the company does not have a single, appropriate sponsor. This should be an executive with a deep understanding of operations and processes, preferably the COO or Head of Supply Chain. The CIO is often too technical, the CFO too cost defensive. The sponsor must constantly verify progress, make organizational decisions, protect the business objective, and ensure that the organization, not the vendor, manages the project. The lack of such a person makes the transformation the property of the system integrator, not the company. - When the board believes in myths, the project sinks before it starts
Executives often believe promises that are not based in reality. There is no universal way to a successful implementation. The cloud does not simplify organizational changes. The budget will be higher, the timeline longer, and team commitment greater than what vendors declare. The organization cannot hand over responsibility to the integrator, because the project ceases to be business focused and turns into a technology endeavor without direction. Realism regarding employee resistance, which is natural and stronger than anyone predicts, is also crucial. - Minimal system customization often indicates wise leadership
Many companies declare the ambitious goal of having zero system customizations. This is either naivete or a lack of understanding of the nature of competitiveness. The reality is that a certain level of software customization is not only reasonable but often necessary to maintain market advantage. Unique processes and key competencies do not always fit into standard ERP system modules. - The brand on the contract does not guarantee project success
One of the most dangerous assumptions is the belief that simply hiring a large global integrator is enough for a project to succeed. History shows this is untrue. Costs are high, the pace can be slow, and the quality of work depends on the actual team assigned to the project. A large contractor will not replace strong leadership and will not make strategic decisions on behalf of the organization. In many cases, only true partnership, a demanding attitude, and active management of the integrator lead to real value.
Digital transformation is a difficult process that requires courage, accountability, discipline, and consistency. It is a business project that affects people, processes, structure, and culture. It cannot be outsourced or simplified. However, it can be conducted in a way that makes it the foundation of long-term competitive advantage. Success is not a matter of luck or chance. It is the result of mature management at the board level, conscious leadership, and full responsibility for the change.
If these observations sound familiar, it is worth considering whether your organization’s upcoming transformation is based on the right assumptions and whether the leadership is ready to take on the role that cannot be delegated.
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