More than half of the Dutch C-level executives admit that they do not know where to start when developing their transformation strategy. That’s what Celonis says based on its own research into how companies deal with transformation programs.
58 percent of Dutch senior leaders think their business transformation was a waste of time. In addition, it may also have been a substantial cost centre, which may not produce a return. In fact, 36% of Dutch companies have spent between 100,000 and 500,000 euros on transformation strategies in the past twelve months.
However, according to Celonis, there is a reason to point out that transformation initiatives are not producing the desired results. The managers do not seem to make use of the expertise of those who are closest to the organisation’s business operations. 52 per cent admit that front-line employees are only involved in transformation initiatives if the mid-market segment or consultants tell them what changes they need to make.
In addition, half indicate that they have set targets for their programme before they have identified what needs to be improved. However, 54 percent of executives said they were more confident about implementing their transformation strategy if they had a better understanding of how their business is run.
74 percent further state that artificial intelligence and machine learning are areas for which they want to increase their investments. 80 percent say this is automation. But only 22 percent say they intend to invest more in improving the visibility of their processes. However, for organisations that want to increase their investment in innovation, an understanding of current processes is essential in order to find out which technologies are most beneficial to the company.
Transformation strategies must be based on concrete insights resulting from processes that actually take place within a company, says Alexander Rinke, co-founder and co-CEO of Celonis.
Our research shows that many companies invest too quickly in costly initiatives that they don’t even have to implement per se. A better understanding of inefficiencies in underlying business processes can help organizations to invest wisely in the best possible service for their customers.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.