The $50M Mistake: Calling It ‘Transformation’
Tens of millions spent. ERP system finally live. The celebration feels muted. Margin leakage continues. Service levels still miss the mark. And leaders are left asking: What exactly did this “transformation” transform?
This isn’t failed execution. It’s a failure of intent and framing — from Day 0.
Call it “transformation,” and everyone nods. Let your ERP vendor and large SI firm lead, and it feels safe. But what you’re really signing up for is a tech migration — with no path to business value.
How it happens:
Business ambition to drive real KPI impact gets diluted into a tech-driven ERP migration.
Phase 0 leads to an ERP deployment plan — not a business strategy.
The focus shifts to templates, configurations, and go-live milestones.
And the real question — “what capabilities must we build or improve to win in future?” — never gets asked.
The result? A modern ERP system. But the same fragmented processes. The same maturity gaps. And no measurable impact on the KPIs that matter.
The ERP-SI Playbook Trap
One of the biggest risks in enterprise transformation? Many “Phase 0” efforts led by large SIs default to ERP roadmap delivery plans — not true business strategies.
Too often, clients end up with junior teams running superficial discovery — followed by standard decks filled with generalized AI promises and templated “best practices”...
What’s missing?
No real articulation of your industry dynamics
No understanding of your strategic priorities
No maturity assessment across people, process, tech, and data
No clarity on what KPIs will actually move — by how much or why
Everything aligns perfectly with the software roadmap. Not your business model. Not your strategy. Not your P&L.
The narrative is often: transformation takes time. Value may take 2–3 years. And if business users push back, they’re labeled as resistant.
And just like that — your strategy becomes hostage to a delivery model optimized for their revenue, not your outcomes.
Decibel-Driven, not Data-Driven
The deeper issue? The scoping process itself.
Even with clear executive ambition, most transformations are scoped by decibel, not data.
Loudest voices get funded
Political favorites get their pet projects
Tech teams default to “safe” and “feasible” — not high impact
That’s how companies end up with bloated backlogs, fragmented releases, and zero connection to enterprise KPIs.
We’ve seen it too many times.
A Better Way: Value-Optimizing Transformation
At GitaCloud, we believe transformation must be:
Strategy-first
Capability-led
Value-delivered
Here’s how real transformation is scoped, sequenced, and delivered:
1. Anchor on Strategic Capabilities
Don’t start with systems. Don’t start with processes. Start with this question: What are the strategic capabilities we must master to compete and win?
For a specialty chemicals firm: batch-specific margin visibility. For a semiconductor company: MTO-capable orchestration. For a global distributor: multi-tier ATP or cost-to-serve intelligence.
Generic process maps won’t get you there. Strategic capabilities will.
2. Assess Maturity by Capability
For each capability, assess current vs. target maturity across:
People – skills, roles, org structure
Process – governance, agility
Technology – enablement, intelligence
Data – quality, granularity, latency
Use a 5-level capability maturity model tied to your industry and KPIs — to pinpoint gaps and guide investment.
3. Prioritize by Value and Viability
Map capabilities on a value–viability matrix:
High value, high readiness → immediate wins
High value, low readiness → strategic investments
Low value → cut ruthlessly
This drives impact-led sequencing, not vendor-led scoping.
No more “Phase 1 = Basic MRP” nonsense if you’re make-to-order and need dynamic attach-rate forecasting. No more “ML Forecasting” that’s just extrapolation — when your business runs on pricing elasticity, demand drivers, and service differentiation.
4. Design Quarterly Value Releases
Forget two-three year waterfall programs. Build a roadmap of quarterly value releases, each 1–3 sprints long.
Each release should drive:
Capability maturity progress across People / Process / Technology / Data
Measurable outcomes: revenue, margin, cash flow, ROIC
Organizational adoption — not just config and code
This is enterprise-grade agile transformation.
The Role of a True Transformation Office
Here’s the kicker: your ERP vendor won’t do this. Neither will your SI.
They’re not incentivized to define what you need — only to sell what’s on the roadmap, and minimize risk through standardized delivery.
You need a fractional Transformation Office that works for you:
Owns capability maturity mapping
Frames objectives in value terms
Builds a sequenced, executable roadmap
Holds teams accountable for delivering measurable value
That’s how you move from stagnant delivery to meaningful quarterly progress.
Transformation Is Too Important to Outsource to Tech Vendors
When transformation becomes a software sales motion, you lose strategic control.
When ERP go-live becomes the end goal, value gets sidelined.
When your roadmap is just a checklist, not a maturity journey, you get the illusion of progress — and no impact.
We’ve helped CFOs, COOs, CIOs, and BU leaders reclaim the agenda — by anchoring it in strategy, capability, and measurable value.
Let's Rethink the Roadmap
If you’re in Phase 0 and it already feels thin…
If your SI just handed you a 200-slide deck of “best practices” with no connection to your industry or your strategy…
Or if you’ve already gone live and aren’t seeing the impact…
Let’s talk.
