Business transformation is a top priority for IT departments, alongside emerging technologies like AI, cloud computing, and more. However, many organisations struggle to define what business transformation means for them and how it aligns with their objectives. This is a common conversation I have with senior leadership teams, where the goal is often to understand the true value of such a transformation.

 

The Kitchen Story: A Lesson in Business Transformation

Let me share a story from my own experience that offers a parallel to business transformation. In our previous apartment, my wife proposed the idea of a new kitchen. She felt the current one was outdated, didn’t match modern trends, and lacked new appliances. My first thought was, ‘There goes my budget for a new car!’ I asked her what a new kitchen would allow us to do that the current one could not. After considering this, her response was simple: she uses the kitchen daily and knows best how it can be improved.

To get a clearer picture, we consulted three specialists: two kitchen designers and a kitchen fitter. The designers presented various layouts, but the options were limited by the fixed utility points in the apartment. The fitter, however, provided an honest assessment. He pointed out that the existing units were in excellent condition and questioned the need for a complete overhaul. His view was that we could make simple, cost-effective changes instead of a full replacement.

After much deliberation, we concluded that a full kitchen replacement wasn’t justified. Instead, we focused on selective updates: replacing the radiator, upgrading the lighting for better visibility, and updating the appliances. The result? A refreshed kitchen that felt brand new, without the hefty cost or disruption.

Two years later, we moved to a new home, and the kitchen conversation came up again. This time, however, the space and configuration offered opportunities to rethink the layout. Living in the space allowed us to identify broader needs beyond the kitchen itself, such as addressing the utility room. We realised that a complete kitchen transformation should be part of a larger plan, with long-term objectives in mind.

 

What This Means for Business Transformation

I use this kitchen analogy to highlight the difference between renovation and innovation. In the first case, we renovated, making improvements within the existing framework. In the second, we innovated, rethinking the layout and integrating the kitchen transformation into a broader plan. Both approaches required careful planning, but the second approach—like business transformation—required a more strategic outlook.

When it comes to business transformation, the process is the same. The first question we must ask is “Why?” What is driving the change, and how will it provide value? These questions are fundamental to aligning transformation efforts with business strategy. To successfully define business transformation, you need to understand the company’s vision, values, and strategic goals—not just focus on the IT wish list.

It’s important to gather evidence, insights, and facts about the current landscape and how existing systems are being used. This helps determine whether you should renovate or innovate your IT systems. Often, business transformation isn’t about replacing everything; it’s about making smart, incremental improvements that align with long-term goals.

 

Collaboration and External Expertise

Business transformation is a joint effort between IT and the business. Both sides must be involved in the process from the start. The key here is that, as organisations, we often only know what we know. External experts can offer a fresh perspective and help identify opportunities and issues that may not be visible internally.

At E-Com, we approach business transformation with this mindset. When helping businesses navigate their SAP Business Transformation journey, we always start by asking “Why?” and assess how current systems are being used. Tools like SAP LeanIX and SAP Signavio are invaluable in this process. They provide visibility into the current state of your IT landscape and help guide evidence-based decisions. By mapping out current systems, their usage, and alignment with business goals, we can make informed recommendations on whether to renovate or innovate the IT platform.

 

No One-Size-Fits-All Approach

There is no one-size-fits-all solution to business transformation. Every organisation’s journey is unique, and decisions should be based on data and strategic goals. However, by using insights and aligning with the broader business vision, you can significantly increase your chances of making the right decisions for your transformation.

 

Lessons for Business Transformation

  1. Start with “Why?” – Define the driver for change and the value it is expected to deliver.
  2. Align with Business Goals – Transformation should come from the organisation’s vision and strategic objectives, not just the IT department’s needs.
  3. Understand the Current Landscape – Before making any decisions, assess how systems are being used and gather evidence about the current processes. Tools like SAP Signavio can map processes in hours, offering valuable insights.
  4. Collaboration Is Key – Involve both IT and the business in the decision-making process. Transformation is a joint effort.
  5. Use External Expertise – Sometimes an outsider’s perspective can help uncover issues and opportunities that internal teams may overlook.
  6. Visualise the IT Landscape – Use tools like SAP LeanIX to get a clear picture of the current IT systems, licensing costs, and overlaps, helping to guide decisions.
  7. There’s No Single Answer – Every company’s transformation journey is different. The best approach is one that aligns with the company’s strategy and delivers measurable value.

 

Practical Checklist

  • Start with Why – Define the problem and the expected value of the change.
  • Align with Strategy – Ensure the transformation supports the business vision and strategic goals.
  • Assess Current Processes – Use SAP Signavio to evaluate whether current processes support both current and future goals.
  • Map the Current IT Landscape – Use SAP LeanIX to identify system overlaps, licensing costs, and end-of-life applications.
  • Define the Desired State – Outline the ideal processes to meet strategic goals, without focusing on technology.
  • Communicate and Collaborate – Foster cross-departmental communication for successful transformation.
  • Avoid Benchmarking Blindly – Every transformation journey is unique. Tailor the approach to the organisation’s specific needs.

 

Final Thoughts

While the analogy of a kitchen renovation might seem a simplification of business transformation, the principles are similar. In both cases, the key to success lies in asking the right questions, aligning decisions with business goals, and using data to guide the process. Business transformation, like kitchen renovations, can be a complex process—but with careful planning, collaboration, and expert guidance, it can deliver lasting value to your organisation.