Understanding SAP Digital Transformation Governance
Written by Manpreet Kaur
October 10, 2022
Digital transformation is no more discretionary; instead, it has become an essential component of businesses. This massive shift brings all elements — data, processes, and people together to deliver extraordinary customer experiences enabling business organizations to tap potential opportunities and drive exceptional growth. While integrating digital technologies and tools into different aspects of a business, it is essential to implement digital governance to control a company’s digital presence. Read this blog to understand digital transformation governance, its importance, and how you can implement it for your business.
Governance refers to the formal framework that controls alignment of IT strategies with corporate business strategies. It aims to enhance IT management and extract maximum value from the capital spent on IT. Also, it enables business organizations to assess and mitigate risks and guarantee all information and technology activities align with business goals and objectives.
The digital transformation structures and processes ensure transparency, responsibility, accountability, stability, equity, and inclusiveness. They also consider the needs and interests of stakeholders and workforce by monitoring the processes they are involved in. This way, organizations can improve significance of corporate information and augment their power and potential.
Importance of Digital Transformation Governance
- Fulfills legal and regulatory requirements
- Instills confidence in stakeholders to trust your services
- Enhances return on IT investment
- Optimizes investment on IT services
- Determines measurable results concerning overall business goals
- Reduces value leaks
Investment in technology is one of the top investment businesses make to achieve their goals and optimize value. But still, organizations fail to gain maximum benefits and are pushed to invest more to make desired progress. This is because they invest in procuring more technology instead of appropriate technology.
Businesses must make informed decisions to choose the right technology that corresponds to existing business model and operations, meets goals, and fulfills future ambitions. In other words, businesses need to overcome the alignment challenge. Is it possible to integrate business strategies with IT strategies considering existing and upcoming operations? This is when digital transformation governance comes into picture. It helps businesses to finetune their digital assets to create processes and strategies to obtain maximum value.
How to start with Digital Transformation Governance?
The first step is to select a framework that can accommodate the organization’s structure and deploy it immediately if it aligns with your business goals and requirements.
COBIT (Control Objectives for Information and Related Technology) empowers business organizations to overcome challenges related to risk management & regulatory compliance. It ensures effective use of technology to gain operational success, maintains high-grade information, reduces risks, and makes the most of IT investments.
Principles of COBIT 5
- Fulfills needs of stakeholders
- Encompasses the entire enterprise
- Uses a single integrated framework
- Offers a holistic approach
- Differentiates between governance and management
Businesses can use the above principles to create a comprehensive framework for IT management and governance with these seven enablers as their foundation.
- People, policies, and frameworks
- Organizational structures
- Culture, ethics, and behavior
- Services, infrastructure, and applications
- People, skills, and competencies
The ISO/IEC 38500 refers to the international standard that lays the basics of corporate governance of IT and offers guidance on its proper use. It specifies ways to govern management processes and make information and communication service decisions. The main principles of ISO/IEC 38500 are:
- Define responsibilities
- Frame best strategies for the organization
- Make acquisitions for authentic reasons
- Set performance levels
- Compliance with rules
- Appropriate consideration for human factors
Capability Maturity Model (CMM)
The CMM framework helps management systems to boost the development and delivery quality of products and services. It presents five maturity levels – Initial, Repeatable, Defined, Managed, and Optimizing for continuous process improvement. These maturity levels establish a scale to gauge maturity of the software process and improve it.
SAP Digital Transformation Governance
SAP technologies such as SAP S/4HANA, SAP Ariba, SAP Fieldglass, and SAP Concur simplify digital transformation for businesses by providing them with accurate and actionable data. The critical considerations for SAPinsiders include:
- Identify main reasons to embrace digital transformation
- Build an atmosphere for adoption
- Divide digital transformation process into manageable chunks
RISE with SAP
RISE with SAP is a holistic offering with applications, services, tools, and platforms to drive digital transformation. It allows organizations to envision business models and processes, ensure compliance and connect to business networks. In addition, it fulfills the industry-specific needs in different locations.
RISE with SAP as a Solution to Drive Business Innovation
Image Source: *83150_81486_enUS.pdf (sap.com)
Benefits of RISE with SAP
- Drives cloud-enabled innovation and grows revenue by creating business models
- Unlocks new opportunities and streamlines business operations
- Optimizes business processes with AI-enabled recommendations
- Executes mission-critical operations at a large scale with intelligent technologies
- Maintains sustainability through strong controls and transparency
Are you searching for a trusted partner to drive business innovation? At Royal Cyber, we pave the path for seamless digital transformation and secure your success. Our certified SAP experts walk with you on your digital transformation endeavor and ensure easy innovation. We put in experience-driven insights to automate and accelerate business processes and give recommendations on what needs to be improved. Reach out to us to know more.