During my 25 years of ERP and digital transformation implementations, one finding has been confirmed again and again: IT leadership and business acumen are the missing links between success and failure. Without them, projects fail, get delayed, or become massive cost overruns. Today, once again, I was reminded of this hard truth.
If IT does not have a leadership role and business acumen, digital transformation will fail.
And today, once again, this truth hit me like a reality check. As I work on a project, I see the same pattern repeating—the IT department lacks empowerment, has minimal strategic influence, and struggles to drive real adoption.
The Persistent Challenges in IT-Led Transformations
Over the years, I have encountered similar scenarios in different industries, regions, and organizational setups:
- ❌ Organizations treat IT as a support function rather than a strategic partner.
- ❌ Lacks decision-making authority, causing other departments to dismiss their inputs.
- ❌ CIOs and IT heads, without business acumen, cannot drive adoption or influence stakeholders.
Many organizations assume that implementing an ERP or any digital transformation initiative is solely IT’s responsibility. This is a fundamental mistake. Digital transformation is a business-driven initiative. If IT is not positioned at a leadership level and lacks business understanding, then the transformation will be slow, ineffective, and may never deliver its intended value.
ERP and Digital Transformation: More Than Just IT Projects
ERP implementations and digital transformation are business transformation initiatives, not IT projects. Yet, without strong IT leadership, organizations encounter the same issues:
- ⏳ Delays: Projects stretch beyond planned timelines due to lack of ownership.
- 💸 Budget overruns: Costs spiral out of control due to poor planning and execution.
- 📉 Limited ROI: The business fails to realize expected benefits because end-users resist change.
This issue is further compounded when IT leaders themselves lack business acumen. If IT leadership remains purely technical and does not engage with business objectives, they will never be seen as true partners in transformation.
Why IT Leadership and Business Acumen Are Crucial for Digital Transformation
Early in my career, I realized that technical expertise alone was not enough. I needed to understand what mattered to business leaders—their concerns, goals, and challenges. I took the time to study business to ensure that I could translate technology into business value and have meaningful discussions with decision-makers.
Unfortunately, many IT leaders never make this shift. They focus only on technology and fail to align their efforts with business strategy. As a result, IT continues to be seen as a cost center rather than an enabler of business growth.
Lessons from Experience
- 🔹 IT must secure a leadership role, not just execute technical tasks.
- 🔹 CIOs and IT leaders must understand business strategy, not just technology.
- 🔹 If IT only follows instructions without strategic input, the project is doomed.
- 🔹 Business ownership of ERP is critical—IT can enable, but the business must lead.
- 🔹 IT must drive change management and ensure that business teams are engaged.
- 🔹 Digital transformation is not about technology—it is about people and processes.
The Role of IT Leadership in Driving Digital Transformation
A major reason for ERP failures and prolonged digital transformation projects is the lack of senior IT representation at the leadership table. If IT leadership is absent from high-level strategic discussions, they cannot influence decision-making or ensure that technology is aligned with business priorities.
This creates a downward spiral:
- 🔻 IT is left out of business strategy discussions.
- 🔻 Business teams make decisions without consulting IT.
- 🔻 IT is expected to implement solutions without full context.
- 🔻 Under-utilization of ERP systems and digital tools are underutilized.
- 🔻 The project faces delays, cost overruns, and ultimately fails.
When IT is given a leadership seat and business responsibility, this cycle is broken. IT can drive change, enforce best practices, and ensure that the organization fully benefits from its technology investments.
How Business Acumen Strengthens IT’s Strategic Role
If IT leadership lacks strategic influence and business acumen, expect ERP implementation to:
- ⏳ Drag on for years instead of months.
- ⚠️ Face resistance from end users.
- 🚨 Fail to deliver long-term business value.
IT leaders must be proactive, not reactive. They must engage with business leadership, understand commercial objectives, and drive transformation—not just support it.
Final Thoughts: IT Must Step Up
I am tired of seeing the same mistakes repeated in organizations. IT must step up, lead transformation, and stop being just an order-taking department. If CIOs and IT leaders do not develop business acumen and fail to position IT strategically, digital transformation efforts will continue to suffer.
