|[March 21, 2019]
Celonis Study: Almost Half of C-Suite Executives Admit to Launching Transformation Initiatives without a Clear Strategy
New research released today by Celonis
has found that despite significant pressure to embark on transformation
initiatives that enable greater productivity, improve customer service
and reduce costs, most businesses remain unclear on what they should
focus on. The results showed that almost half of C-suite executives
(45%) admit they do not know where to start when developing their
transformation strategy. The Celonis study explores how businesses are
approaching transformation programs, as well as the disconnect between
leadership and those on the frontline.
The survey of over 1,000 C-suite executives and over 1,000
business analysts found that many organizations have wasted significant
resources on business transformation initiatives that have been poorly
planned. In fact, almost half (44%) of senior leaders believe that their
business transformation has been a waste of time. With over a third
(34%) of businesses having spent over $500,000 on transformation
strategies in the last 12 months, many organizations run the risk of
incurring huge costs with no return.
Top-down strategies are stunting results
It's no wonder that transformation initiatives aren't hitting the mark,
because business leaders are not using the expertise of those closest to
running the organization's operations. The results highlighted a
disconnect between those developing transformation strategies and those
carrying them out:
Almost 4 in 10 (39%) business analysts said they are not regularly
consulted to inform their organization's transformation strategy.
Well over half (58%) of business leaders admitted that frontline
workers are only involved in transformation initiatives because middle
management or consultants tell them which changes to make.
Businesses are skipping square one
In addition, the study demonstrated that most organizations are
struggling with transformation initiatives because they are diving into
execution before understanding what to change first. In fact, more than
eight out of 10 (82%) C-suite executives admit they do not review their
internal business processes to understand what needs to be prioritized
when settinginitial goals and KPIs for a transformation program.
Perhaps this is because they don't know how to gain this visibility;
almost two-thirds (65%) of leadership state they would feel more
confident deploying their transformation strategy if they had a better
picture of how their business is being run.
And this trend has trickled down to the entire organization. The
research shows that almost two-fifths (39%) of analysts are not basing
their work on internal processes when executing the transformation
strategy given to them by senior personnel. Ultimately, this highlights
that business leaders are investing in transformation initiatives
because they think they should and not because they have identified a
Look too far ahead and stumble in the present
Despite acknowledgement that an understanding of the here and now would
be beneficial to inform transformation strategy, businesses are still
jumping straight into tactics. For example, almost three quarters of
C-suite executives cite AI/machine learning (73%) and automation (73%)
as areas they want to maintain or increase investment in. In contrast,
less than a third (33%) of senior leaders state that they plan to invest
more in getting better visibility of their processes. But for those
organizations that want to increase their investment in AI and
innovation, understanding their current processes first could help them
to work out which technologies would be most beneficial to their
"Transformation strategies will inevitably be part of every
organization's operations, because no business can avoid adapting to the
latest industry and technological trends," commented Alexander Rinke,
co-founder and co-CEO, Celonis. "However, they should be founded in
concrete insights derived from processes that are actually happening
within a company. Our research shows that too many businesses are
rushing into costly initiatives that they do not necessarily even need
to embark on. They are falling at the first hurdle; having a better
understanding of inefficiencies in underlying business processes can
help organizations invest wisely to provide the best possible service
for their customers."
"From early stages in digital transformation to post transformation,
organizations must understand how internal processes can shape their
business strategy," added Jeremy Cox, Principal Analyst, Ovum (News - Alert).
"Quantifying the business impact of existing or newly adapted processes
can help optimize the environment for customers. Ovum's annual global
ICT Enterprise Insights research based on around 5000 enterprises
reveals a consistent picture of struggle, as industry by industry around
80% have made little progress. While there are many reasons for this
difficulty, a forensic examination on how work gets done, aided by
intelligent process mining technology, would help quantify the
consequences and drive consensus on what must change."
To download the full report, go to https://story.celonis.com/square-one-research/
is the New York- and Munich-based leader in business transformation
software, turning process insights into action with the process mining
technology it pioneered. Its Intelligent Business Cloud allows
organizations to rapidly understand and improve the operational backbone
of their business. Companies around the world including Siemens (News - Alert), GM, 3M,
Airbus and Vodafone rely on Celonis technology to guide action and drive
change to business processes, resulting in millions of dollars saved and
an improved experience for their customers.
About this research
Celonis commissioned research to explore how businesses were managing
their transformation strategies and what the obstacles were to success.
A survey of 1,009 business analysts and 1,002 C-level executives in
companies with over 500 employees in the UK, US, Germany and the
Netherlands was conducted by Opinion Matters in January 2019.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190321005135/en/
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