To keep up with market and IT developments, more organizations are adopting a cloud-first strategy. This approach often involves migrating various business applications to the cloud, but transitioning core processes is often less prioritized. SAP commissioned a study to uncover what is holding organizations back from taking this critical step in their digital transformation. In this blog post, we'll share some key findings.
At tcf., we see 2025 as the year of true digital transformation. Companies are realizing they need to go beyond merely the “lift & shift” approach—simply translating existing business processes to cloud solutions is not enough. To truly become future-proof, organizations need to transform all processes as well as their IT architecture.
Fortunately, recent research by SAP offers tangible insights to help organizations take action. During our roundtable in September, Head of Business Transformation Services at SAP, Esmee Arends shared some striking statistics from this publication. Let’s dive deeper into the findings.
Cloud hesitation syndrome
On behalf of SAP Netherlands, Markteffect and Lewis studied the “transformation mindset” Dutch businesses show. The report, “The gap between business and IT is hindering future-oriented ERP transformation” (link in Dutch), highlights the main obstacles and opportunities for successful digital transformation.
One notable conclusion from the study is that companies are hesitant to migrate their core processes, such as ERP systems, to the (public) cloud. This “cloud hesitation syndrome” can result in a delay in adopting innovations, such as generative AI. Modern technologies offer significant competitive advantages, and are often easily accessible via the cloud. This hesitation also leaves businesses dependent on IT departments, limiting opportunities for self-service capabilities.
Smooth implementation
What is the biggest cause of delayed migration? According to the research, a lack of digital skills is the main culprit. More than half of respondents (55%) cite this as the reason for slow cloud-ERP implementation.
While cloud migration indeed requires new methods and processes, concerns about this are largely unfounded. Among organizations that have made the transition, 78% report a smooth implementation. Resistance to change is another challenge: 57% of organizations mention this as a hurdle in investment decisions.
The research also identified other challenges and trends:
- 38% of organizations take over two years to make investment decisions. Large companies are particularly affected, with 15% reporting that innovation projects take over three years.
- IT managers (61%) and CEOs (52%) are the primary decision-makers for strategic investments, followed by CFOs at 33%.
- External partners significantly influence decision-making in 75% of organizations, with 29% stating that these partners directly determine the course of digital transformation projects.
- For 54% of organizations, the absence of a clear business case is an obstacle to decision-making. Only 17% measure the success of digital transformation projects with predefined KPIs.
Transformation in the Fast Lane
The study highlights that organizations miss significant opportunities by hesitating to transition to the cloud. The substantial benefits mentioned include access to innovative technologies, improved competitive advantage, and significant cost reductions through standardization and business enablement. In our opinion, digital skills and change readiness should be critical areas of focus. By acting faster and making more strategic, well-substantiated decisions, companies can fully capitalize on the opportunities digital transformation offers.
Feeling daunted? We’re here to help you get started. On Tuesday, April 15, we’re hosting the event ‘Transformation in the Fast Lane’ at the Louwman Museum in The Hague. Various experts, including Esmee Arends from SAP, will share practical tips and use cases on cloud transition and the mindset it requires. Want to accelerate your digital transformation with us? Sign up here (in Dutch)!
