What does a digital transformation mean to you? Maybe artificial intelligence, improved productivity, or change. Or maybe even the idea feels a little overwhelming and frightening. Those are some of the reactions we heard during a recent engagement with manufacturers and non-manufacturers. Having grown up in the manufacturing industry, I’ve had a front-row seat to both the challenges and the excitement that come with adopting new technologies. And now, I work with companies navigating the digital landscape, and one thing is clear: growth-oriented businesses are eager to transform, but many aren’t sure where to start.
Here’s the key: digital transformation isn’t just about technology. Yes, the tools matter to streamline operations and drive growth. But if your people, strategy, and culture don’t align, the tools will not produce the results you hope. Take Enterprise Resource Planning (ERP) systems, for example. ERPs are often a cornerstone of digital transformation efforts. If your digital transformation journey starts with evaluating your ERP system, here are 10 clear signs it might be time for an upgrade or total replacement:
- Performance is suffering – If your system is slow, clunky, or crashes frequently, it’s not just frustrating; it’s costing you productivity.
- High maintenance costs – Old systems often come with expensive support contracts or require specialized knowledge to keep them running.
- Outdated technology – If you are experiencing challenges in supporting modern business processes, automation, or integration with other systems, it’s a sign that a new system is needed.
- Security risks – Older systems can be more vulnerable to breaches and data loss.
- Highly customized – If your ERP has more custom code than core functionality and named after the developer who built it, like “Rogerware,” you’re probably in trouble.
- Shadow systems – Are there multiple versions of the truth, and are employees relying on spreadsheets and workarounds outside your ERP? That’s a red flag.
- Limited scalability – If your ERP can’t support growth through acquisitions or diversification, it’s a liability.
- User frustration – Difficult interfaces and rigid workflows don’t attract or retain top talent.
- Lack of documentation – When nobody knows how your system works, it’s a ticking time bomb.
- Missing features – Today’s ERP should offer AI, analytics, automation, and mobile access out of the box.
Start with a Strategy
Digital transformation isn’t just about buying the latest tech. It starts with business strategy. You have to ask: Why are we adopting this technology? What problem are we solving? For example, maybe you’ve identified that your employees aren’t being challenged or are unhappy with current processes, contributing to talent loss. Implementing a new ERP with fresh interfaces, automation, and multi-device capability can improve productivity and employee job satisfaction. If you answer, “Because we have to go digital,” you need to dig deeper. At a former company, I worked with a great leader who brought a lot of value. However, getting him on board with digital tools like marketing automation and ERP took effort. An experience I’ve learned is not unique across organizations. It required demonstrating how these tools aligned with our company vision and values to get him on board. Digital adoption starts at the top. Leadership buy-in isn’t optional; it’s foundational. And please, if you ever hear someone say, “That’s an IT project,” stop them. Digital transformation is a business project. IT supports it, yes. But it has to start with your strategic leadership team.Know Your Digital Landscape
Before you go anywhere, understand where you are. Map out your current digital footprint. You’d be amazed how many companies we walk into have an ERP on an AS/400, a QMS in Access, a WMS in Excel, and a CRM that’s basically someone’s Outlook inbox. You can’t drive transformation on a foundation like that. Start by identifying all your tools, how they connect (or don’t), and where your risks are.Set the Vision for the Future State
Once you understand your current state, define your future state. Ask:- Do we want integrated systems?
- What kind of data do we need?
- How do we want to interact with customers and suppliers?
Show What’s In It for Me?
Every change initiative will meet resistance. There was hesitation when we introduced visual scheduling boards on our shop floor, replacing manual entry into a blue-screen ERP. We asked operators to trust new tech, change old habits, and follow a more complex path. How did we overcome it? Education. We showed them how these changes made their lives easier, how first-article inspections and real-time scheduling helped reduce chaos and rework. People care when they see how change benefits them.Talk to Your Vendors
I stress to every company, whether we work with them or not, continue to engage with your software vendors. Ask them:- What’s your roadmap?
- How are you enabling AI, GenAI, and RPA?
- How do you support integrations?
- Understand your current state
- Define your future vision
- Align leadership
- Integrate smartly
- Educate and empower your people