Core Insights - Approximately 70% of digital transformation projects fail to meet expectations, often due to organizations blindly pursuing flashy technologies while neglecting foundational issues [2] - The company undertook a significant digital transformation project, investing nearly $1 billion, to modernize its operations and address systemic chaos accumulated over decades [3][4] - The shift from a traditional supply chain mindset to a supply network approach was crucial in managing complexity and stakeholder coordination [6][10] Digital Transformation Challenges - The company faced a chaotic reality in its digital transformation efforts, with outdated systems and siloed departments leading to strategic misalignment between technology investments and business needs [3][4] - The operational scale increased complexity, as the company operates an ecosystem of approximately 180 locations, requiring coordination among various internal units and external partners [4] - Initial efforts to implement a new procurement platform revealed deep-rooted conflicts among departments, highlighting the challenges of aligning different priorities and processes [4][8] Supply Network Thinking - A critical mindset shift occurred, moving from a linear supply chain focus to a complex supply network perspective, recognizing the interdependencies among internal teams, suppliers, and partners [6][7] - The company adopted a network approach to manage complexity effectively, emphasizing the importance of understanding the flow of orders, data, and decisions across the organization [6][10] - Success metrics were redefined to encourage collaboration across departments, moving away from isolated KPIs to shared network indicators [7][10] Stakeholder Coordination and Evolution - The most challenging aspect of the transformation was fostering new collaboration methods among personnel and processes, as misalignment could lead to project failure [8][9] - A robust governance structure was established, with a committee of executives from key departments meeting bi-weekly to review progress and resolve conflicts [8] - Training and organizational evolution were prioritized, ensuring that structural changes were accompanied by cultural shifts to support the new systems [9][10] Key Lessons for CIOs - Focus on foundational systems rather than flashy technologies, as modernizing core processes often yields the greatest long-term benefits [11] - Engage personnel early and frequently in the transformation process to ensure user adoption and mitigate failure risks [11] - Think in terms of networks rather than linear chains, promoting visibility and collaboration across functions and partners [11][12]