The Art of Change Management: How to Avoid the Pitfalls of Digital Transformation

Perfect Technology, Failed Implementation

Imagine for a moment that you’ve just bought a Formula 1 racing car. It’s the pinnacle of technology, offering breathtaking performance - everything you could ever wish for. But what happens if you immediately drive it into busy downtown traffic without first learning how to handle it?

This is precisely what happens with 70% of corporate software implementations. The failure isn’t due to the technology itself but to the lack or inadequacy of change management. According to a global McKinsey survey, only 30% of digital transformation projects achieve their stated goals. The majority fail not because of technological challenges, but because of the human factor.

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Managing Change in Digital Transformation

The problem: 70% of digital transformation projects fail – not because of technology, but because they neglect change management. When implementing new procurement or automation systems, we're not just giving people a new tool, we're fundamentally changing decades-old work habits.

The three fatal mistakes:

1. The "Big Bang" illusion – Everyone uses it starting tomorrow? It doesn't work. The human brain resists sudden changes.

2. The communication trap – One email isn't enough. People don't hear what we say, they hear what they fear.

3. Lack of support – Leaving users on their own after implementation is a recipe for failure.

The solution: gradual automation

Why Isn't "Good Software" Enough?

Implementing procurement and process automation systems is a particularly sensitive area. We are not simply handing colleagues a new tool; we are fundamentally altering work routines that have been in place for decades.

Just think about it: an employee in a procurement department may have been using the same processes for 15 or 20 years. Excel spreadsheets, email chains, and phone calls are deeply ingrained work habits. When a new system arrives, the initial reaction is often not enthusiasm, but fear:

  • "Will I become redundant?"
  • "Will I be able to learn this?"
  • "What if I make a mistake?"
  • "Why change something that has worked perfectly well until now?"

Anna Fritz-Körmendi, Procurement Manager at MAVIR, described this exact situation regarding the implementation of the Fluenta software: "Previously, our company managed pre-qualification data using Excel spreadsheets, but this created a significant administrative burden for the employees." The success of the change, however, depended not just on the technology, but on the fact that the implementation "was smooth and fast," with the right support.

The Three Deadly Sins of Change Management

1. The "Big Bang" Illusion

The most common and dangerous mistake is when leadership thinks, "We've launched the system, so everyone will start using it tomorrow." This is like throwing a non-swimmer into the deep end of the pool and saying, "You'll figure it out."

The reality is far more nuanced. The human brain dislikes sudden change. Neurological research shows that when faced with radical change, our brain switches to "emergency mode," which blocks our ability to learn and increases resistance.

In contrast, a gradual approach involves:

  • Starting with a small pilot group (10-15 people).
  • Automating just one simple process at first (e.g., approving low-value purchases).
  • Evaluating, learning, and fine-tuning after 4-6 weeks.
  • Expanding the user base and functionality.
  • Building on success incrementally.

2. The Communication Trap

The second major pitfall is a lack of, or poor, communication. Many leaders believe a single email or meeting to announce the new system is sufficient.

The root of the problem:

  • People don't hear what you say; they hear what they fear.
  • The phrase "increasing efficiency" is often interpreted as "downsizing."
  • "Modernization" can sound like, "The way you've been doing things was wrong."

An effective communication strategy includes:

  • Early and honest dialogue: Involve key stakeholders even before the final decision is made.
  • Answering the "Why": Don't just explain what you're implementing, but why.
  • Highlighting personal benefits: How will this make an individual's job easier?
  • Continuous feedback: It's not a one-time announcement but an ongoing conversation.

3. The Lack of Support

The third critical mistake is abandoning users after the launch. "Here's the system, now use it," is a recipe for certain failure.

What does real support look like?

  • A dedicated support team: Not just an IT helpdesk, but process experts who understand the workflows.
  • Accommodating different learning styles: Some people learn from videos, others by doing.
  • A "no stupid questions" culture: Creating a safe environment for learning.
  • Continuous improvement: Incorporating user feedback into the system.

The Art of Gradual Automation

Digital transformation is a marathon, not a sprint. The philosophy of gradual automation argues that the goal is not to automate every process overnight, but to progress at a sustainable, manageable pace.

The Four Levels of Automation

1. Manual (MAN) Level - The Digital Foundation The first step is to digitize paper-based processes, though all decisions remain human-led. Purchase requests are now in the system—trackable and searchable—but approvals still require someone to review and authorize each one manually. This alone is a huge step forward: no more lost emails, everyone sees the same information, and there is finally a clear record of who approved what and when. Here, users learn the system's basics and build trust.

2. Supported (SUP) Level - The Intelligent Assistant At this level, the system becomes an active advisor. It analyzes past purchases and makes suggestions like, "Last year, we bought this product 20% cheaper," or "We had the best experience with this supplier." However, the final decision still rests with the human user, who can accept, modify, or reject the recommendation.

3. Collaborative (COL) Level - The Strategic Partnership Here, a true division of labor emerges. The AI does what it excels at: processing 50 quotes, checking for formal requirements, and objectively scoring prices. It then presents the top 3-5 offers with a detailed analysis. The human focuses on what they do best: weighing strategic considerations, building long-term partnerships, and making complex decisions. This not only saves significant time but also improves the quality of decisions.

4. Automated (AUT) Level - Autonomous Operation This is the pinnacle of digital maturity, where well-defined, repetitive processes run on their own. When office supplies fall below a critical level, the system automatically places an order with the usual supplier. When a framework agreement is about to expire and performance has been satisfactory, it automatically renews it.

The "Software with a Service" Model

The fundamental problem with the traditional software implementation model is that the vendor sells the product, and its successful implementation becomes the customer's problem. It's like buying an airplane and then being told, "Here you go, now learn how to fly it."

What Does "Software with a Service" Mean?

This is more than just a support package. It’s a shift in mindset where the software provider offers consultation and continuous support long after the initial implementation.

The pillars of this model:

  • Ongoing partnership: Not a one-time project, but a long-term collaboration.
  • Shared success: The vendor's success depends on the customer's success.
  • Adaptive approach: No two implementations are the same.
  • Holistic support: Not just technical help, but also process and change management guidance.

In Practice: A Typical Implementation Roadmap

Weeks 1-2: Strategic Alignment & MVP Definition

  • Identify key processes and pain points.
  • Fine-tune goals and workflows.
  • Define a focused pilot project (Minimum Viable Product - MVP).

Outcome: Crystal-clear goals and a shared vision of success.

Weeks 3-5: AI-Driven Configuration

  • A functional architecture is created in hours.
  • A working prototype is available early in the process.
  • Feedback is incorporated into the prototype.

Outcome: A tangible system prototype to test and validate.

Weeks 6-8: Pilot Project

  • Test the MVP with a select group of users.
  • Use real data and live transactions.
  • Provide close expert support for users.

Outcome: Immediate, measurable results.

Post-Week 8: Scaling and Continuous Improvement

  • Expand the proven model to other areas.
  • Identify new automation opportunities.
  • Continuously evolve the system as the company grows.

Outcome: Return on investment and long-term support.

The Importance of Measurement: How Do We Know the Change is Successful?

Peter Drucker famously said, "What gets measured, gets managed." This is especially true for change management.

Hard and Soft Metrics

Hard Metrics (KPIs):

  • System usage statistics
  • Process cycle times
  • Reduction in error rates
  • Cost savings

Soft Metrics:

  • User satisfaction
  • Change readiness index
  • Stress levels
  • Willingness to innovate

Tamás Nováki, Chief Technical Officer at ELTE University, reports concrete results: With Fluenta, the lead times for our previously lengthy order processes have been reduced from 30-45 days to an average of 7-10 days, with some orders being fulfilled in as little as a day." This isn't just a number—it's a dramatic improvement in the quality of daily work.

Conclusion: The Recipe for Success

A successful digital transformation doesn’t hinge on technology. Even the most advanced procurement system is doomed to fail without proper change management. The key to success is:

  • Gradual Progress: Taking it one step at a time.
  • Human-Centricity: Technology should serve people, not the other way around.
  • Support: A continuous, multi-layered support system.
  • Communication: Honest, ongoing, and two-way dialogue.
  • Measurement and Learning: A culture of continuous improvement.

Change is not a threat; it is an opportunity. And success depends not on luck, but on a deliberate and well-executed approach.

The sooner you start, the sooner you experience the benefits.