Technology transformations are common, realizing its full potential value is not

Common Challenges of Technology Transformations

Technology systems have evolved from stable enterprise backbones to modern systems like SAP S/4HANA, which emphasise value. However, these transformations often remain technology-centric, leading to unmet stakeholder expectations. A new transformation approach is needed, not only to call it a business transformation but to execute it as one end-to-end, fully leveraging the opportunities that rapidly evolving technologies, such as AI bring. Challenges include:

• Budget Constraints: Tightening budgets and increased demand for proven ROI put pressure on technology projects to deliver measurable outcomes quickly.
• Disconnected Tech & Business Value: Technology initiatives often lack alignment with usiness goals, making it difficult to translate these investments into tangible business outcomes.
• Limited Visibility: Evolving technology project scopes and complex landscapes reduce transparency on how changes meet original business objectives.
• Unclear Value Realization: Organizations struggle to quantify incremental growth and benefits from technology investments, leading to underappreciated or overlooked value.

Defining the Value of Technology Transformation

Technology transformation is necessary, but costly, and impacting the organization for a long time. The true business impact emerges only when combined with E2E process discipline, key operating model changes, improved data quality, AI and automation, and value capture plays to convert efficiencies into bottom line savings.

The specific value of a technology transformation needs to be determined in an upfront technology strategy phase, where value planning takes place. Top level business strategy objectives need to be financially and strategically aligned with program targets. An Enterprise Value map is used to determine the key levers and define the North Star KPIs.

As soon as the program kicks off, a bottom-up value realization approach needs to be driven by the Value Management Office (VMO). The VMO maps out how value will be delivered, how process-aligned KPIs will be defined and baselined, and how value realization targets will be set and tracked. The VMO will establish a value measurement approach to quantify both qualitative and quantitative benefits from the transformation program.

Successful transformations apply a holistic, end-to-end approach to define, deliver and sustain real value from technology investments over time.

Value Realization Framework

Discover Deloitte's Vision to Value methodology, a proven approach to impactful technology transformations, achieving measurable business benefits and recalibrating ongoing transformations for efficiency.

We focus on value realization from Day 1 to maximize ROI investment. Realizing the true value of a technology-driven program requires this full lifecycle approach. It drives value realization through robust governance, comprehensive value tracking, and sustained change adoption by the business and individual users. The description of each phase of the lifecycle and its objective as follows:

1. Value identification: Identification of the benefit potential and the initial (top-down) transformation business case. Agreement on the transformation target and scope.
2. Value Planning and baseline: Confirmation of the business case and planning of the phased approach for value realization. This prepares for an end-to-end value realization throughout the transformation.
3. Value vs scope management: Drive value implementation based on progress reporting and change control mechanisms.
4. Post go-live adoption: Ensure initial adoption and embed new processes and value journeys into business operations to drive sustained value creation

Conclusion

Deploying a value-driven technology transformation requires strategic alignment across all organisational levels. Deloitte's Vision to Value methodology places business value at the centre of the transformation, aligning stakeholders on common objectives. This approach enables enterprises to harness efficiencies, drive innovation, and create sustainable value, essential in times of economic uncertainty.