According to the latest research from SAP and Oxford Economics, only 57% of business transformations end up being worth the time, money, and effort they require — but this can change.

Today’s business transformations are diverse, ranging from creating new products or services and entering new markets to adopting cybersecurity frameworks and transitioning to net-neutral carbon emissions. However, these transformations are neither swift nor inexpensive, and sometimes the costs can be hidden.

That is why SAP has partnered with Oxford Economics on a new and comprehensive survey of large organizations, providing an exclusive look at the current global state of business transformation.

“The Estimation Game: What Do Business Transformations Really Cost?” reveals the true cost of business transformation, with the data aimed at helping organizations maximize transformation success and take the guesswork out of transformation budgeting.

Spanning a range of industries and focusing on companies with a minimum revenue of $500 million, the report provides insights from a balanced audience of 800 respondents, including IT professionals and leaders from corporate strategy, R&D, finance, manufacturing, HR, and operations.

The paper further reveals that:

• Barely half of transformations go according to plan (51 percent)
• Fifty-eight percent of transformations end up going over budget
• The average cost of transformation efforts is €9.5 million
• Sixty-three percent of respondents face resistance from leadership regarding the value of transformation efforts
• Nearly half of the initiatives highlighted by respondents remain incomplete, and budgetary constraints pose a significant challenge

From Strategy to Execution

In broad terms, this disconnect between the confidence level of respondents and what the report data reveals about the true cost and organizational impact of transformation can be understood in the equivalent disconnect between strategy and execution.

For example, while three in five say their major transformation plan was well communicated across their organization, only 53 percent say it was clearly defined in the first place.

While most companies are employing strategic practices such as crafting mission statements, appointing dedicated leaders, and forming cross-functional teams, they can lack the final piece of the puzzle when it comes to converting strategy into action. That is where SAP comes in.

“Transformation challenges will always exist, particularly in aligning execution with strategic road maps,” Dee Houchen, head of Marketing for SAP Signavio and SAP LeanIX, shared. “As companies navigate these complexities, the path to successful transformation remains a critical focus for global businesses, which is why this research is so relevant.”

“SAP Signavio and SAP LeanIX solutions offer clarity and transparency in business transformation, helping organizations leverage enterprise analytics and process data to really turn transformation plans into action through supporting decision-making, setting timelines, and tracking progress effectively,” Houchen said. “This report is an invaluable resource for anyone wondering why their transformation efforts have slowed, what they can do differently, and how others have identified and overcome similar hurdles to their own.”

Lucas de Boer is Global Marketing program lead for SAP Signavio at SAP.

In today’s fast-paced and competitive business environment, delivering exceptional sales experiences is crucial for driving growth and staying ahead of the competition. However, many businesses still struggle with fragmented processes that make it difficult to take a personalized, timely approach to customers.

With disconnected enterprise resource planning (ERP) and customer relationship management (CRM) solutions, sales teams face challenges such as siloed data, delayed responses, and inconsistent messaging — all of which prevents sales teams from engaging customers effectively and scaling operations.

When businesses connect SAP Customer Experience solutions, such as SAP Sales Cloud, with SAP ERP, the results are impressive. According to research by Enterprise Strategy Group, organizations see:

• Approximately 90% improvement in productivity in Sales team
• Approximately 40% improvement in productivity in Business Operations team
• Approximately 100% improvement in sales conversion rates

The Power of a Unified Lead-to-Cash Process

A unified lead-to-cash process is at the heart of every successful business. It enables organizations to manage leads from the moment they enter the pipeline — through qualification, proposal, negotiation, and, ultimately, to closed deals. However, for many, the journey from lead to cash is complicated by fragmented processes that prevent a holistic view of data.

When sales teams struggle to connect the dots between lead generation, order fulfillment, and invoicing, they encounter inefficiencies that prevent them from acting on real-time insights, providing consistent messaging, and delivering personalized experiences to customers. The result is missed opportunities and lost revenue.

This is where SAP Sales Cloud, together with SAP S/4HANA Cloud Public Edition, comes in. These powerful solutions provide a unified process that connects all critical sales and operational functions into a seamless workflow. By integrating SAP Sales Cloud with SAP S/4HANA Cloud Public Edition, businesses can break down data silos and transform their sales processes to be more agile, responsive, and customer-centric.

Key Benefits of SAP Sales Cloud and SAP S/4HANA Cloud Public Edition

• Real-Time Insights for Informed Decision-Making: With SAP Sales Cloud and SAP S/4HANA Cloud, sales teams gain access to real-time data, so they can make informed decisions on the spot. No more waiting for updates or dealing with outdated information. This integration helps teams respond to customer inquiries more quickly and tailor solutions to each customer’s unique needs.
• Streamlined Lead-to-Cash Process: One of the most significant advantages of using SAP Sales Cloud in combination with SAP S/4HANA Cloud is the ability to streamline the entire lead-to-cash process. From capturing leads to managing opportunities and enabling AI-infused sales processes, these solutions provide a seamless experience for both sales reps and customers.
• Improved Collaboration Across Teams: Integration between SAP Sales Cloud and SAP S/4HANA Cloud aligns different departments — from sales to finance — for seamless collaboration and unified access to critical data. This integration fosters better collaboration, so that everyone has access to the same data, improving alignment and accelerating deal closures.
• Accelerated Sales Operations Through Automation: SAP Sales Cloud automates routine tasks like lead assignment, follow-ups, and quote generation, which accelerates sales cycles. This automation reduces manual workloads, empowers sales teams to focus on strategic activities, and helps close deals faster, all while supporting accuracy and consistency across the process.

Exclusive Access for GROW with SAP Premium Subscribers

For businesses using a suite of SAP solutions, the value is clear: SAP Sales Cloud is included as an entitlement for premium subscribers of GROW with SAP. This allows them to take full advantage of these powerful tools without additional cost, empowering them to unlock their sales potential and accelerate growth.

The benefits of GROW with SAP go beyond just access to SAP Sales Cloud. Premium subscribers of GROW with SAP also gain access to a suite of resources designed to optimize their SAP environment and empower teams with the skills and tools needed to drive success.

To learn more, watch “Unlock a Seamless Lead-to-Cash Process with Your GROW with SAP Subscription,” a webinar exploring common challenges and demonstrating how to establish a streamlined sales process.

Sung Cho is product marketing director for SAP Customer Experience at SAP.