Three Horizons That Will Help You Embrace Digital Transformation

Bertille Laudoux

What happens if you don’t embark on the digital transformation journey? Can you apply the Three Horizons of Innovation to digital transformation? And what role does intelligent ERP play in this process? Find out in this blog and in a webinar featuring IDC research analyst and digital transformation expert Danielle Hernandez.

Digital transformation is becoming an ever-growing priority on every CXO’s agenda. By embarking on the digital transformation journey, organizations make use of the growing benefits that digital innovation has to offer. Embracing digital and becoming an intelligent enterprise allows organizations to transform data into action. It enables operations, finance, digital security, technology, and supply chain to collaborate and respond to the real-time needs of the ecosystem with digital products, services, and exceptional experiences.

Build your strategy of success in the experience economy

With the rise of smartphones and social media, it’s never been easier for customers and employees to evaluate which companies provide great experiences and which ones don’t. Many variables can affect our experience as customers or employees. Do you believe you offer a first-rate service? And do your customers agree?

According to SAP’s Capital Markets Day 2019 report and an article published in The New Economy, 80% of CEOs believe their company offers a superior experience, but only 8% of customers agree. So, having the right strategy is paramount.

Intelligent enterprises generate higher-value outcomes

Becoming more digital and transforming into a digital enterprise truly produces higher-value outcomes. In several industries, companies are transforming in order to get the most out of all the digital innovations that are now available.

When we take a quick look at the professional services industry, for example, companies embrace technology to increase market opportunity, achieve profit goals, and grow market share. Accenture, for instance, reports a 25% to 50% improvement in performance across transactions, batch programs, distribution of data, and report performance. Infosys reports 98% faster access approval cycles – from 48 hours to 30 minutes. Convergent IS reduced days sales outstanding with 48%.

The same goes for manufacturing, where digital transformation contributes to a shorter time to market for new products, lower product lifecycle management costs, and lower manufacturing cycle times. Vectus Industries, for example, achieved a 15% reduction in operating costs and a 60% increase in operational efficiency. Airbus DS Optronics was able to reduce data volume by 75%. These are just random examples, but they are very telling.

Three horizons of innovation

How do you become digital? How do you create an effective digital transformation strategy? A clever way to approach this topic is by applying  McKinsey’s Three Horizons of Innovation model.

The first thing you need to establish is that digital transformation doesn’t happen overnight. Reaching the intelligent enterprise stage might take several years. It is very important, however, to make that end goal as clear as possible. What does it mean for your company to become a truly intelligent enterprise? In what ways are you going to deliver exceptional services, products, and experiences? What does that ask of collaboration within your organization? And what does that ask of your systems? This is Horizon 3, your company’s final state in the distant future.

The next question is: What do you need to realize in the near future? Which processes can you improve with smart technologies, data, and analytics to gradually become more digital? In this phase, you truly realize the foundations of the intelligent enterprise by creating one single version of the truth and gathering all your digital processes, apps, and systems on a single platform. This is Horizon 2.

Horizon 1 consists of all the things you can put in place in the coming days and months to embark on your digital journey.

Three key elements of intelligent ERP

The key element of your digital transformation strategy is a fitting intelligent ERP system. Intelligent ERP relies on three key elements to enable the workforce to focus on higher-value outcomes.

  1. A digital-age UX: ERP that’s aware of your business context and reflects the reality of work unlocks the opportunity to work smarter.
  1. AI-powered automation: Artificial intelligence automates processes, while predictive analytics improves decision-making and performance. The more user behavior is observed, the smarter and more effective automation becomes.
  1. Next-generation business processes: Automatic adaption and learning based on successes and failures allow a new level of optimization and a new set of use cases.

Don’t take my word for it; listen to Danielle from IDC

Want to know more about how companies can grow into intelligent enterprises? Then I would really recommend participating in a webinar by IDC research analyst and digital transformation expert Danielle Hernandez. The webinar takes place on Wednesday, October 30, 15:00 (CET) sharp.

In her work, Danielle covers a wide variety of topics relating to digital experience (DX), focusing on assessing the digital impact of emerging technologies. Her speech on the Three Horizons of Innovation at the SAP Festival in Brussels was inspiring, and this webinar gives you a great opportunity to get better insight when it comes to her vision on digital transformation and even chat with her in person. SAP’s Chris Green will complement her story with more information on SAP S/4HANA as the main enabler for digital transformation.

Register for the IDC Webinar


Bertille Laudoux

About Bertille Laudoux

Bertille Laudoux leads marketing on Digital Core in SAP EMEA North. SAP’s intelligent ERP is the digital core that enables businesses to integrate end-to-end cross-functional next-generation business processes so that companies can become intelligent. Previously, Bertille led SAP Solution Extensions marketing in EMEA and MEE. Bertille joined SAP France to handle marketing programs, first focusing on enterprise information management solutions. She later expanded the scope to all infrastructure solutions, solving challenges of real time and agility, helping CIOs push innovations and support businesses in digital transformation.