Language Switcher

    Data Identification & Clustering

    Migration

    Transformation

    Quality & Integrity

    Platform Integration

    Data Privacy & Security

    Simulation & Automation

    Retention & Retirement

    Governance & Support

    Process Excellence

      Home > Newsroom > Challenges Transformation Projects

      Study: Lack of in-house expertise is a major challenge when planning a transformation project

      pm-studie-fehlendes-mitarbeiterknowhow-1200x550

      A study conducted by Natuvion in the German-speaking region (DACH) highlight the key factors which play a crucial role in digitilization projects. These factors include in particular specific project management methodologies, resources, scheduling, and knowledge.

      Agility – the art of planning a digital transformation

      Those companies participating in the survey demonstrated a realistic view that modernization is a comprehensive process from the very beginning. What these companies did not yet realize is the fact that the complexity involved requires the right project management approach. The study found that 80 percent of the transformation projects were planned and executed at least partially with an agile methodology mindset. Indeed, projects use waterfall methodology as well as agile project management, and a combination of both concepts.

      80 percent of companies that rely on agile processes also stated that they plan with a project timeline of at most two years. In contrast, 40 percent of companies that prefer waterfall assume it will take them longer than two years to implement the transformation project.

      Spoiler Alert – the not so happy ending of a digital transformation

      It is not only the complexity that is a challenge. According to the respondents, resource planning is in almost every other project a challenge of the same criticality, caused by a lack of competence and experience for such projects. This difficulty is a clear indicator that workforce constraints in the IT sector have a direct impact on the ability of companies to begin a digital transformation. In addition, companies struggle with maintaining a current project overview and keeping the project financially on track. To effectively manage the course of the project and its own complexity is for more than 30 percent of the companies as equally challenging. Typical areas of concern include the adherence to schedule requirements, a high coordination effort for continuous alignment, and the analysis of the as-is system landscape to begin with. Other responses call out the need to minimize the downtime (28 percent) and the stand out role of test management (21 percent).

      As a result of these considerations, more than half of the projects are executed in several large stages. After all, 31 percent of the projects are rolled out over a longer period of time. Only 12 percent of the companies decide to go all in and go-live with a big bang on a specific date. Hence, leadership understands its responsibility and what is at stake. Potential mistakes are to be identified and ruled out upfront.

      The assumption that risk awareness influences the planning is supported by the fact that in transformation projects in which security plays a major role, smaller steps are taken about twice as often as in projects with a lower risk level. In cases where companies are willing to take a greater risk, the switch to a production happens in every fifth project on one fixed date.

      Holger Strotmann, Natuvion founder and managing director, stresses that “The study proves that a shortage of skilled professionals and a lack of expertise can no longer be ignored. In the meantime, this has already had concrete consequences for digitalization initiatives of organizations and their ability to address future challenges. With this in mind, it is at least reassuring that transformation projects with strong risk awareness are planned and implemented with a high degree of anticipation and at a slower pace compared to projects which allow for a more aggressive approach.”

       

      About the study

      This large-scale study addressed a total of 201 decision makers of mid to large-sized companies who had either already completed a transformation project or were right in the process of one. The results of this effort are intended to provide valuable insight to support a more targeted approach to digital transformation.

      Download Study: Transformation Study 2022

      Related News

      5 reasons why thinking about intelligent automation in the utilities industry is worthwhile!

      Feb 16, 2023

      5 reasons why thinking...

      Automation takes away people's jobs, has security risks and...

      Read more
      Intelligent Automation addresses energy providers’ urgent need for agility

      Jan 9, 2023

      Intelligent Automation...

      For energy providers, time and resources to take on the...

      Read more
      The biggest challenge in 2023: companies lack time and resources to pursue digital transformation

      Jan 2, 2023

      The biggest challenge in...

      A dramatic shortage of skilled personnel and an...

      Read more
      EN_SuccessStory_EnergieSaarLorLux EDM

      Dec 7, 2022

      Optimized energy data...

      Learn how Energie SaarLorLux re-integrated its supply-side...

      Read more
      49 percent of companies fall short of transformation goals

      Nov 15, 2022

      Study: 49 percent of...

      A study conducted by Natuvion documents that almost half of...

      Read more
      Study: 60 % of Digitalization Projects are Initiated by Management

      Nov 4, 2022

      Study: 60 % of...

      With its latest study, Natuvion documents top executives’...

      Read more
      EN_Downloads_SuccessStory_BMW

      Oct 25, 2022

      Pedal to the Metal:...

      With a size of more than 30 TB, the BMW Group’s SAP ECC...

      Read more
      NTT DATA acquires stake in the Natuvion Group and expands its SAP S/4HANA transformation expertise

      Aug 31, 2022

      NTT DATA acquires a stake...

      NTT DATA Business Solutions AG, the globally leading SAP...

      Read more

      Never miss information again. Subscribe to our newsletter!