top reasons your cloud transformation initiative will fail ... · source: part 1: the booming cloud...
TRANSCRIPT
Top Reasons your Cloud
Transformation Initiative will Fail
– and How to Avoid Them
Sharka Chobot
About Sharka
Founder – Chief Transformation Officer Neural Impact
30 year marketing executive (Simply Acctg (Sage), Pivotal
CRM, ATI Technologies, Epicor ERP/Vantage Point)
Professor Marketing & Behavioral Science
Advisor to Microsoft & Tier 1 & 2 Microsoft AX/NAV/CRM
Partners: Europe, North America
Creator: CRM Product Category
Creator: Microsoft EIPP Content
Sharka’s contact info:
(604) 987-4275
www.neuralimpact.ca
Why Cloud Transformation Initiatives Fail
No urgency
Individual resistance to change
Not managing the transition
Failure to change the processes & systems
Inability to change the culture
Forces Driving Change
Forces Impeding(Emotional - FEAR)
Existing customers on premise
Need large capital investment
Denial, “happy-talk”
Avoiding tough decisions
Fear of loss of short term revenue
Uncomfortable & resistant to
change
Perpetuation of familiar culture
Incompetence intolerance
Lack of clarity, uncertainty
Fear of risk
Changing buyer behavior
Business need for cost savings & outdated legacy systems
Pressures to stay globally competitive
Large players pushing cloud: Microsoft, AWS, Google, Salesforce, IBM, Oracle
Large horizontal players also investing in verticals - SAP, Oracle
Commoditization of CRM, ERP
Virtualization of Services
High cost of labor
Project risk and failure
Loss of key customers
Customer demands
Loss of deals
Increased competition
Change in executive
Mergers/acquisitions
Disruptive Change
Employment in manufacturing declined from
30% to less than 10%.
At the same time, jobs in services soared
from less than 50% to 70%
WHAT to Innovate?
5 Levels Position
Vertical Specialist
Products
Cloud Offerings
Services
Strategic Expertise vs Commodity
Internal Processes
Lean vs Traditional
Business Model
Recurring Revenue
License vs Service Dominant
IDENTIFY
CUSTOMER PAINBUILD
TEST,
PIVOT
BUILDGO TO
CUSTOMERSFIX
Requirements Design Implementation TestingRelease +
Maintenance
• Root CauseAnalysis & Insights
Understand
Persona +
Problem
• Build SolutionBuild Minimal
Viable Product
• Test Assumptions, PIVOTTest &
Pivot
• Root CauseAnalysis & Insights
Understand
Persona +
Problem
• Build solutionBuild Minimal
Viable Product
• Test Assumptions, PIVOTTest &
Pivot
Packaged Solutions
Services Revenue
80%
Reactive
Services
Recurring
Services
One Time
Implementation
Product Revenue
20%
IP Revenue
Ongoing
Recurring
Product
Revenue
Up Front
Perpetual
Licenses
Overcoming Complacency
Source: Part 1: The Booming Cloud Opportunity The Modern Microsoft Partner Series An IDC eBook, Sponsored by Microsoft
Our perception and beliefs about change impact our experience of it.
High utilization rates have serious negative side effect
As utilization delays lengthen dramatically
Unpredictable - Not like manufacturing with few surprises and orderly work
5% more work can increase time 100%
Why do we Resist?
Loss of Power
Risk
Fear
Broken Implied ContractsGet in the Way of Buy in
LOGICAL
• Information
Based
• I don’t get it!
EMOTIONAL
I don’t like it!
PERSONAL
• Bigger than the
change
• I don’t like YOU!
Change is not
the same as Transition
Stages of Transition
First step:
Letting go
Second step
No man’s land
Third step:
Neutral Zone
Managing the Neutral Zone
The Importance of Communication & Vision
Ensure buy in by Generating
Quick Wins
Barriers
to
Sustainable
Change
Formal Structure
Reward Systems
Make it Difficult
Leadership Can
Discourage
Personnel, Norms
Constraints
Lack of
Required Skills
We understand the vision and
want to act on it but are BOXED
IN
Overcoming
Complacency
Create a Change
Team
Create a
Compelling
Vision
Communicate
Actively
Get Buy inPlan for
Resistance
Align for Success
Manage Stress
Celebrate ResultsAction Based
Change Leadership
Sharka Chobot
Sharka’s contact info:
(604) 987-4275
www.neuralimpact.ca