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Perspectives

The third transformation option: Moving the data and processes that matter most

Rapid, AI-enabled Selective Transformation

A panel of transformation professionals from Deloitte and Google Cloud unpack how Selective Transformation plus cloud-first principles, can deliver AI-enabled analytics, smart infrastructure capabilities and end-to-end value for today's Kinetic Enterprise™.

For companies looking to rebuild their digital core, a greenfield implementation – the full-scale, wholesale, “start from new” digital transformation – may be an unrealistic goal. At the same time, a brownfield approach may not go far enough. There is, however, a third option: Selective Transformation to move only the data and processes that matter most to your organization.

Staying ahead of change

“Having a ‘built to last’ tech core to support business does not guarantee a lasting business that will endure unprecedented, disruptive changes”, says Soumya Chakravorty, managing director, Deloitte Consulting LLP. “This relentless pace of change across industries [and] geographies is forcing leaders to adopt new solutions.” Among them, he points out, is an enterprise that is “built to evolve” with disruptive technologies and can do so continuously to stay ahead of change.

But when a company is in the early stages of, for example, leveraging analytics, the notion of embracing AI and machine learning as part of a wholesale transformation can be daunting. Dinesh Vandayar, business development lead at Google Cloud, recollects the hesitation he has encountered from customers about adopting disruptive tech. He is adamant that to thrive, not just survive, amidst waves of change, companies must set aside those reservations. This is particularly true since AI and machine learning are drivers behind the four pillars of the Kinetic Enterprise – clean, intelligent, inclusive and responsive.

Moving forward from back office debt

Gautam Mylavarapu, senior manager, Deloitte Consulting LLP, presents the idea that disruptive tech provides companies the capabilities they need to engage with customers in new ways, but legacy systems and technological debt are preventing them from moving forward.

He cites his experience with a food industry customer as an example. With a supply chain and ERP built around three-square-meals-a-day consumer purchasing habits, the company is struggling to adapt in a time of “throughout-the-day eating, micro meals, fast, high calories, selective calorie, [and] keto diets.” Being able to respond and adapt to consumer demand that is ever-changing is at the core of a Kinetic Enterprise.

Vandayar advances the thought, explaining how huge, on-premise ERP landscapes that are accompanied by ambitious, three-year plans, are becoming a thing of the past. Market pace has obliterated such luxuries of time, along with the ‘big bang,’ one-and-done transformation. “The only way you can respond is to modernize IT and application estates, and Selective Transformation gives you a path to do it,” he says. “Break it down into smaller chunks … Pick those high business value cases and put a plan into action.”

Goals, mindsets and measurables

Digital transformation should do three things, according to Vandayar. First, it should generate net new revenue streams or capture lost ones, to justify the level of investment. Next, it should accelerate time to value, particularly in dynamic marketplaces, and especially in uncertain times. Finally, it should drive agility by overcoming technical debt and through a cultural mindset change – a shift he emphasizes is important “to actually be a little bit more dynamic, take a little bit more of an experimental approach, and if you fail, it’s okay.”

Chakravorty brings key performance indicators to the table, and offers an enterprise should be measured against five beacons of success: 

  • Improve customer engagement and satisfaction
  • Improve employee satisfaction and productivity
  • Deliver top-line growth
  • Drive operational efficiency and cost reduction
  • Drive products and services innovation

For all the discussion about technology, Mylavarapu gives a final thought for leaders who are facing transformation decisions right now: Selective Transformation can ease the impact on people. Large scale projects “usually have a humungous employee impact. You don’t have to do that with the AI-enabled tool set Google [Cloud] and Deloitte co-developed.”

Want more transformation insights from enterprise leaders? Visit deloitte.com/SAP to download future podcast episodes or listen to previous ones.

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