MBAs Want to Win By Delivering Value. It Is Like an Abstraction, Right?
August 11, 2023
Note: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.
Is it completely necessary to bring technology into every aspect of one’s business? Maybe, maybe not. But apparently some believe such company-wide “digital transformation” is essential for every organization these days. And, of course, there are consulting firms eager to help. One such outfit, Third Stage Consulting Group, has posted some advice in, “How to Measure Digital Transformation Results and Value Creation.” Value for whom? Third Stage, perhaps? Certainly, if one takes writer Eric Kimberling on his invitation to contact him for a customized strategy session.
Kimberling asserts that, when embarking on a digital transformation, many companies fail to consider how they will keep the project on time, on budget, and in scope while minimizing operational disruption. Even he admits some jump onto the digital-transformation bandwagon without defining what they hope to gain:
“The most significant and crucial measure of success often goes overlooked by many organizations: the long-term business value derived from their digital transformation. Instead of focusing solely on basic reasons and justifications for undergoing the transformation, organizations should delve deeper into understanding and optimizing the long-term business value it can bring. For example, in the current phase of digital transformation, ERP [Enterprise Resource Planning] software vendors are pushing migrations to new Cloud Solutions. While this may be a viable long-term strategy, it should not be the sole justification for the transformation. Organizations need to define and quantify the expected business value and create a benefits realization plan to achieve it. … Considering the significant investments of time, money, and effort involved, organizations should strive to emerge from the transformation with substantial improvements and benefits.”
So companies should consider carefully what, if anything, they stand to gain by going through this process. Maybe some will find the answer is “nothing” or “not much,” saving themselves a lot of hassle and expense. But if one decides it is worth the trouble, rest assured many consultants are eager to guide you through. For a modest fee, of course.
Cynthia Murrell, August 11, 2023
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