Success Factors for Digitalization Projects

Practical example: Lack of management commitment

A mid-sized European shipyard wanted to digitalize its production planning in order to reduce build times for ships and get a better grip on resource planning. However, the project was initiated by the IT department only, without the active participation of  top management.

The stumbling blocks:

• The project objectives were insufficiently communicated, which meant that department heads and employees in the specialist departments did not recognize the benefits of the new software.
• Budget approvals were delayed because the project was not a high priority.
• Resistance in the specialist departments remained unchanged as management did not clearly address the issue.

The consequences:
The digitalization initiative has so far only achieved minimal improvements, employee confidence in IT projects has declined, and the shipyard has not yet been able to achieve its planned efficiency gains.

Collaboration between IT and specialist departments

One of the most common stumbling blocks in IT and digitalization projects is insufficient or delayed involvement of the specialist departments. 
A well-structured, cooperative partnership based on mutual trust between IT and specialist departments is, however, one of the most important success factors. IT organizations bring technological know-how, an understanding of architecture and methodological expertise to the table. The specialist departments, on the other hand, have in-depth process knowledge and are familiar with customer requirements and the day-to-day challenges in operational practice.

Successful projects are created when both perspectives are brought together on equal terms. The important thing is that IT and specialist departments create a common understanding of objectives, priorities and benchmarks for success from day one. Close collaboration with future users is crucial in agile projects in particular as it ensures that requirements are formulated realistically and solutions are implemented in a practice-oriented manner. At the same time, acceptance of new systems increases significantly if employees feel involved from the very start.

Instead of working in separate areas of responsibility, those involved ideally operate in interdisciplinary teams on an equal footing. The regular exchange of information and open, transparent communication create the basis for mutual trust. It is equally important that both parties develop a fundamental understanding of each other. IT should be able to understand the business processes while the specialist departments need to understand the technological framework.

"If this collaboration functions properly, it creates a strong sense of togetherness that goes far beyond mere project work. The specialist departments become active co-creators of the solution and IT is seen as a strategic partner," says Töpperwien. "The result is more efficient processes, higher quality results and a significant increase in user acceptance."

Practical example: IT and specialist departments working together

A large German shipyard wanted to digitalize its development planning with the aim of reducing the development times for ships and improving the consistency of information throughout the development process. IT experts and specialist departments were involved in interdisciplinary teams from the very start.

The success factors:

• Joint workshops at the start of the project, in which objectives, priorities and success criteria were clearly defined.
• Development of a project structure in which one representative from each specialist department and one IT representative were jointly responsible for a specialist domain.
• This enabled IT and specialist departments to develop a mutual understanding. IT became familiar with operative processes while the specialist departments gained insight into the technological capabilities and limitations.

The result:
The system was implemented on schedule, user acceptance was high and development planning was made much more efficient. The specialist departments felt like active co-creators and IT was seen as a strategic partner.

External partners as innovation accelerators

A capable project team with sufficient personnel and time resources is a basic prerequisite when it comes to complex digitalization projects. An experienced project manager who can make decisions and has interdisciplinary expertise is just as important as a realistic timeframe. In addition, clearly defined governance structures make a significant contribution to efficiency. Well-defined decision paths, uniform project management standards and a transparent allocation of roles prevent unnecessary coordination loops and speed up progress.

Practical example: external partner as an intermediary

A large European shipyard wanted to roll out a new PLM system with the aim of creating the basis for the future replacement of drawings and the gradual implementation of model-based product development. Internal IT had limited experience with the new software and the specialist departments had an insufficient technical understanding of the required system functions.

The success factors:

• The external partner contributed both industry-specific process knowledge and technical know-how and assumed responsibility for coordination between IT, specialist departments and the software vendor.
• It moderated workshops with the aim of accurately recording the requirements of the specialist departments and translating them into technically feasible specifications for the software vendor.
• During implementation, the partner ensured an ongoing exchange of know-how. IT gained a better understanding of the specialist processes, the specialist departments gained insight into the software options and the vendor was able to respond more quickly to practice-oriented requirements.
• Decision paths were made transparent to ensure that adaptations could be implemented without delay.

The result:
Thanks to the external partner, communication between all the parties involved was made much more efficient and the basis for the gradual transition away from purely drawing-based processes was created. The specialist departments are more willing to accept the new system. The partner successfully served as a bridge and innovation accelerator, which made implementation much more efficient.

Cultural openness and learning ability

Technical changes only reveal their benefits if they are accompanied by organizational and cultural changes. "Active organizational change management ensures that employees are kept up to date about objectives, progress and benefits, that they are willing to go along with the change process, and that they can move with confidence within it," says Wittkop. An open culture of communication that allows questions, asks for feedback and makes successes visible creates trust and provides motivation. Successful companies rely on regular exchange formats, short information channels and transparent decision-making processes.

Digitalization means change – and change requires the willingness to change. Successful organizations should be prepared to take a close look at well-loved but outdated processes. Where possible, they deliberately rely on standard functions and only customize if customer-specific adaptations offer real added value. At the same time, they cultivate a learning culture: lessons learned derived from every project are incorporated into future initiatives. Feedback loops and ongoing improvement processes ensure that organizations grow with every project.

Practical example: Culture of ongoing improvement

A medium-sized European shipyard wanted to digitalize its project management processes with the aim of making build times, the flow of materials and the use of resources more transparent. The introduction of a standardized tool initially encountered resistance due to the fact that many departments were clinging to their previous Excel and paper-based processes.

The success factors:

• The shipyard made deliberate use of the tool’s standard functions to avoid complexity and only adapted a few modules to meet real, specific requirements.
• Managers openly communicated the benefits of the tool and promoted a learning culture. Employees were actively trained and feedback on problems and suggestions for improvement was taken seriously.
• Lessons learned from initial pilot projects were documented and incorporated directly in the optimization of further rollouts.
• Regular retrospectives made the ongoing examination and adaptation of processes possible without resistance delaying rollout.

Result:
The organization developed a greater awareness for ongoing improvement. The project management tool was successfully rolled out within a few months, the level of acceptance among employees is high and processes have become more efficient and transparent. Thanks to this learning culture, the shipyard was subsequently able to implement other digitalization projects faster and with greater success.

Digitalization projects are not an end in themselves but rather the strategic lever for a company's future viability and competitive strength. Their success depends to a much lesser extent on technology than on a clearly defined strategy, strong leadership, well-structured collaboration and cultural openness, as the practical examples mentioned above demonstrate. Companies that take a holistic view of digitalization initiatives – strategically, organizationally, methodically and culturally – create ideal conditions not only for the successful implementation of their projects but also for their long-term impact.