A global network of business units, perhaps along with an active acquisition strategy, could quickly lead to unnecessary complexity in an organization – a situation that any company is keen to avoid. Your key priorities should be shifting from predominantly maintaining current operations toward helping your company achieve its business objectives. What is needed move from a complex environment to a smart business? How can you establish the right mindset in your organization and manage change? How will powering your business with disruptive new technology to differentiate your business, be successful?

Scalable and stable
Lots of companies have quite a fragmented system architecture, having the desire to move from many different ERP systems to one and make it global – so it has got to be scalable and it has got to be stable. When having different businesses on different software versions there is a lot to gain by moving the business onto the same version and have more regular updates, too, so no part of the business falls behind in terms of the type of technology solutions that they have. Cloud ERP offers exactly that.

Once the goal of a single, standardized ERP system, in the cloud, is achieved, all kinds of advantages are there – for example, deliver highly individualized products and better traceability on all aspects of design of a product, a big advantage for a company in the parts manufacturing business. But also, there are the usual upsides of joined-up procurement, better insight into costs and standard key performance indicators for different business units.

It will also make things easier when companies need to integrate new acquisitions or in some cases segregate those businesses that are sold off.

The right mindset

Where rolling out on premise software could still take two or three years, with cloud software this can be done in months when taking advantage of industry best practices. Still, it involves more than just following a procedure. Above all it is the right mindset that involves leaving your ‘comfort zone’ and entering your ‘learning zone’. Design Thinking can be a major differentiator for your company and business. Design Thinking is a not just a method, it’s a mindset and a powerful tool to tackle any problem or challenge. It’s a way of thinking and doing that can help in order to develop your goals in a secure, playful, and inspiring environment. Making sure representatives from all around the business have the right mindset is key so that business units will be familiar with the processes and understand the importance of standardization.

Don’t wait to innovate
Innovation agility is an effective strategy for driving transformation. With an innovation agility approach, you can innovate far more quickly by optimizing your core IT systems and free-up resources so you can reinvest them in initiatives that most directly and rapidly impact your business.

In Digitalist Magazine Paul Kurchina highlighted some good points on Why digital transformation is easier than you think. For digital transformation, the right blend of technology (“digital”) and people (“transformation”) is vital – and you cannot have one without the other. With cloud ERP as the digital core and adoption of smart processes by people through Design Thinking, organizations can digitally transform faster. With the right mindset and strategy, they will run their business simpler, improve efficiency, and move quickly to take advantage of new business opportunities.

Do you want to know more? Contact me directly at marc.van.der.zon@nextview.nl