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Page 1: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

PUBLIC

Mehryar Entezari, SAP

March 19, 2018

Let’s Change TogetherA pragmatic approach to digital transformation

Page 2: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

The beginning: To be or Not To Be

Page 3: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey

1

2

3 4

5

Prepare

Design

Build Deploy

Run

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4PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Successful digital transformation needs change management

OCM Setup &

Governance

(S&G)

Change

Monitoring

(CMon)

Performance Management (PM)

Communication Management (CoM)

Training & Enablement (T&E)

Stakeholder Management (SM)

Organizational Alignment (OA)

OCM framework for SAP implementation projects

Interventions Setup MonitoringAnalysis

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5PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Common reasons for the failure of digital transformation projects

Source: Deloitte Touche Tohmatsu CIO Survey - Your guide to a successful ERP journey, 2014.

36%

41%

43%

44%

44%

46%

54%

65%

72%

82%

IT perspective not…

No horizontal process view

No change management…

Scope expansion /…

Project team lacking skills

Case for change not…

Poor project management

Unrealistic expectations

Inadequate sponsorship

Resistance to change

% of respondents

Top 10 barriers to ERP implementation

The most common reasons cited for major technology

programs is poor change management

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6PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Nobody told me about this!

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7PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Prepare for Change – ADKAR Checklist

CHANGE MANAGEMENT PLANNINGHave you… Identified project results and outcomes? Selected and applied a systematic approach (methodology) for managing the people side of change? Allocated sufficient and dedicated resources for change management? Assessed change readiness and risk, and adapted accordingly? Engaged project teams to explain why and how change should be effectively managed? Developed the necessary change management plans? Integrated your change management activities into your project management steps or lifecycle? Presented your change management plans to those involved in the execution (sponsors, project teams, etc.)?

Page 8: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

8PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Journey

01

2

3 4

5

Prepare

Design

Build Deploy

RunExplore

Page 9: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

9PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

“Avoid ‘no one told me, no budget syndrome’ by discussing and agreeing dedicated change management resources at project explore / sell phase.”

Page 10: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

The design

Page 11: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

11PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Design the Future – ADKAR Checklist

SPONSORSHIPHave you… Developed your primary sponsor’s understanding of roles and responsibilities? Enabled your primary sponsor to deliver key communications that are expected from senior leadership? Drawn up the sponsor assessment diagram (with leaders from all impacted groups) needed for your initiative? Enabled your sponsor to build this coalition with the required senior leaders?

COMMUNICATIONHave you… Identified all of the different audiences you need to communicate with throughout the organization? Identified who the ideal sender of communication messages will be? Identified the most effective channels of communication? Created mechanisms to enable two-way communication?

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12PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Page 13: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

13PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

National Innovation Strategy (UAE)

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14PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Meet the 1st Minister of Artificial Intelligence!

Page 15: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

15PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Designing the future …

Business Blueprint Realization, Final Preparation Go-Live & Supp

Business

Readiness

(people,

process,

organization)

Different New..

.

SAP

To-be processes

Detect changes and

gaps

1Analyze change impacts

2Define change actions

3Implement changes

4 SAP Solution

Processes

Organization

Change Impact Action

logs (Finance, HR,

Procurement etc.)

OCM Strategy Outputs

•Summary of impact

•Main impacts by functional area

•Main impacts by stakeholder

•Identified impacted roles

•Risk analysis

“We know

the

priorities”

“We know

the

changes”As-is processes

..

.

Page 16: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

17PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

“change management is not always soft and cuddly. Business readiness requires concrete business action!”

Page 17: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

The ending

Page 18: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

19PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Build, deploy and run – ADKAR checklist

TRAIN

COACH

MANAGE RESISTANCE

REINFORCE

Page 19: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

22PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

https://www.youtube.com/watch?v=MdO27pg3xMI

Art of the possible

https://www.youtube.com/watch?v=VOSx_DIERC0

IDC - SMEs in the Digital Economy with Dubai

Page 20: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

23PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Successful companies do digital transformation to remodel their business …

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24PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Reimagined

Business Models Simplicity to connect to people,

devices, business networks

Reimagined

Business DecisionsSimplicity to get any insight on

any data from anywhere

Reimagined

Business ProcessesSimplicity to focus on the essential tasks

and change business processes

No more batch – all processes in real time No more complex collaboration –

all business connected

No more manual consolidation – all decisions

on the fly and at the highest level of granularity

S/4

HANA

Reimagine your business by SAP S/4HANA and digital innovations Unique value for business

Page 22: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

© 2018 SAP SE or an SAP affiliate company. All rightsreserved. ǀ INTERNAL

MachineLearning

Real-time Analytics

Natural Language

IoTMicroservices

Networks

APIs

Intelligently connecting People, Things and Businesses

Collaboration

Integration Mobile Big Data

Business Process Innovation

Connected Data

SAP Leonardo… new business models

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© 2018 SAP SE or an SAP affiliate company. All rightsreserved. ǀ INTERNAL

SAP Leonardo… create business value

Those organizations who generate 50% or more of their revenues

from digital ecosystems achieve 32% higher revenue growth and

27% higher profit margins.Source: MIT Sloan Management Review, Thriving in an Increasingly Digital Ecosystem

Page 24: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

27PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Digital transformation must deliver business value

Page 25: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

28PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Organizational Change Management

is the bridge from “old” to “new”!

Page 26: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

29PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

“As the bridge from old to new, change management is best placed to drive value realization.”

Page 27: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

30PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Let’s change together …

DIY change management leads to change request

OCM resources should be boldly discussed and agreed at the outset during explore (sell) phase

Change management is more than communication … and requires concrete business action

Let’s position change management to plan and drive value realization

Page 28: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

Mehryar EntezariQuality Manager - Customer Office

Office of the President SAP EMEA SOUTH

SAP Middle East & North Africa LLC

E: [email protected]

M:+971 (0)50 644 8782

Let’s Change TogetherA pragmatic approach to digital transformation

Page 29: Let’s Change Together A pragmatic approach to digital ... · PUBLIC Mehryar Entezari, SAP March 19, 2018 Let’s Change Together A pragmatic approach to digital transformation

32PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Build and deploy – ADKAR checklist

TRAININGHave you… Identified current skill levels? Identified skill gaps? Created engaging training programs aligned with adult learning theory? Effectively scheduled training when people need it?

COACHINGHave you… Created the expectation that managers and supervisors will be coaches of their direct reports during change? Prepared coaches to communicate the “what’s in it for me” messages to their direct reports? Provided the knowledge, training and tools to help supervisors be effective coaches? Taught your change coaches how to identify and respond to resistance?

RESISTANCE MANAGEMENTHave you… Proactively identified what resistance might look like? Proactively identified where resistance is likely to come from? Developed measures to prevent or mitigate resistance before it happens? Developed an approach to deal with resistance when it occurs?

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33PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Deploy – ADKAR checklist

REINFORCEMENTHave you… Created a system to track the adoption and usage of the new solution? Established a way to gather feedback from those who are being impacted by the change? Implemented mechanisms for diagnosing gaps and resistance? Prepared methods for celebrating successes (even small ones) during implementation?