The Estimation Game: What do business transformations really cost?
In partnership with SAP Signavio & LeanIX
The report “The Estimation Game: What Do Business Transformations Really Cost?” delves into the complexities and financial implications of business transformation initiatives, offering insights drawn from a comprehensive survey conducted by Oxford Economics and SAP with 800 global business executives. It examines four critical types of transformations—geographic expansion, transitioning to net-neutral carbon emission, product or service innovation, and cybersecurity frameworks—highlighting the necessity of clear goal definition, workforce buy-in, and calculated risk management for successful outcomes. Despite these efforts, the findings reveal that only 57% of transformations are deemed worthwhile investments, with budget overruns affecting the majority of projects.
Key insights from the report underscore the importance of strategic alignment and resource allocation in transformation endeavors, with specific attention to the distinct challenges and expected outcomes associated with each type of transformation. Geographic expansions, for instance, are more likely to yield profitability and cost-efficiency improvements, while sustainability transformations focus on justifying ROI and enhancing customer satisfaction. The research outlines best practices and emphasizes the need for robust data utilization, transparency, and effective communication to navigate the uncertainties and inherent risks of transformation processes successfully.
Accelerating at Altitude: How a major manufacturer approaches transformation
How does business transformation really get done? In partnership with SAP Signavio and LeanIX, Oxford Economics conducted a one-on-one interview with the Strategy and M&A Integration lead at a multi-billion dollar manufacturing organization to identify how business transformation is carried out and what benefits these organizations have seen so far. The case study serves as a companion piece to the Briefing Paper “The Estimation Game: What do business transformations really cost?” Using findings from a survey of 800 executives familiar with the transformation efforts at their organizations, we found that not all transformations go to plan – and that those that do tend to follow a common set of steps along the journey.
The experts behind the research
Our Thought Leadership team produces original, evidence-based research made accessible to decision-makers and opinion leaders. Principals for this project included:
Matthew Reynolds
Senior Editor, Thought Leadership
Aidan O’Farrell
Research Manager, Thought Leadership
Tags:
You might be interested in
Why official UK data are less reliable and what this means
A series of problems have undermined confidence in the accuracy of official economic statistics for the UK. When using Office for National Statistics data, it's important that users make allowance for the increased uncertainty about their reliability.
Find Out More
US Recession Monitor – Recession odds continue to fall
Our proprietary models signal the lowest probability of recession in more than two years as strong incoming data indicates that the economy is on solid footing.
Find Out More
The rapid rise of data centre construction is only getting started
Over the last three decades, new data centre construction has surged and there are no signs that growth will abate in coming years as data collection, analysis, and storage needs are set to grow.
Find Out More
US recession fears are misled by noisy soft data
Recession fears are overdone and premature. The economic data has generally come in weaker than expected, but this is not the first time, nor will it be the last, that this occurs without the economy falling into a recession.
Find Out More