Impaired vision

Impaired vision: Aligning stakeholders on target outcomes of SaaS transformation

In cloud transformation, the IT department may want better security and support tools. Finance might want dynamic forecasting. Other functions may be focused on cost reduction, collaboration, or customer experience.

This is a common scenario in software-as-a-service (SaaS) initiatives. And in fact, stakeholder misalignment on outcomes is one of the top barriers to success.¹

Even more, senior leadership often expects bold changes—like new markets and business models—while functional heads may seek modest process improvements.²

Forethought, not after thought

Because of these kinds of conflicts, it’s critical to develop a shared vision of enterprise outcomes before any cloud transformation. And to sustain those outcomes, teams should plan for continued change management and platform optimization—long after implementation.

A few recommendations as you develop your business case:

1. Bring the right stakeholders to the table to create a unified vision. What business results do you want to achieve from SaaS? Consider both short term and long term, quantitative and qualitative, and transformational and incremental.
   In addition, as you contemplate end-to-end processes that involve multiple functions, be sure to engage those stakeholders in the visioning process. Otherwise, you might realize down the line that the organization doesn’t buy into the SaaS solution that you’re preparing to launch.
2. To make the vision a long-term reality, plan for ongoing evolution. Cloud transformation is a journey, not a one-time project, because the platform must keep pace with constant change. That means creating—and budgeting for—a process for evaluating, testing, and implementing the new functionality that’s continually released by SaaS providers. Capitalizing on this innovation is essential for upholding the outcomes in the business case, lest your new platform becomes tomorrow’s legacy system.
3. Continually manage the change. Implementing new functionality is just one part of SaaS optimization. Also consider how you will manage the cross-functional impacts of that new technology—in terms of process changes, desktop procedures, training, help desk, employee communications, and more.
   Another part of change management is adapting the platform to shifting priorities, such as new strategies, risks, regulations and re-orgs. This discipline gives your business functions the flexibility to pivot quickly.

Starting on the right foot

To succeed with cloud transformation, consider working with a leading service provider to visualize outcomes, design the target operating model, accelerate the journey, and continually evolve the model after implementation. This strategic collaboration is how progressive companies are getting long-term return from their cloud investments.

Learn more about KPMG Powered Enterprise and KPMG Managed Services.

Footnote

1. KPMG Global Tech Report 2022
2. Enterprise Innovation: The vision-execution gap