Trends, stories and background information on digitalization

Digitalization Requires More Than Just Projects

Written by Oliver Deutsch | Jun 23, 2025

Why true digital transformation requires more than isolated initiatives and how the right balance between strategic project planning and operational process automation unlocks sustainable success.

A Strategic Guide for Sustainable Digital Transformation Success

Many digital transformation initiatives don’t fail due to a lack of will or inadequate technology. They fail because of a fundamental misconception: they are treated as one-off projects rather than ongoing, integrated processes.

One company, having invested heavily in infrastructure and customer processes, painfully experienced this. Despite solid planning, CRM tools, and committed project teams, the result was significant friction:
media disruptions, manual coordination, and a lack of transparency, all leading to delays, budget overruns, and dissatisfied customers.

Digital transformation must not get stuck in project thinking. What’s missing is a unifying process framework that automates, integrates, and scales operational workflows.

The Solution:
A hybrid approach: strategic steering through projects, operational excellence through process automation.

Positive results in this case included:

  • Clear, automated workflows from customer contact to implementation

  • Cross-system integration and seamless team handovers

  • Significantly faster execution and higher quality

  • Measurable improvements: transparency, efficiency, customer satisfaction

What decision-makers now need:

  • Consider processes as early as project planning

  • Replace siloed departments with end-to-end integration

  • Use technology as a connector, not just another isolated solution

  • Define clear roles and responsibilities for continuous execution

Digitalization succeeds not when projects are merely launched, but when they are sustainably and seamlessly embedded into ongoing operations. Those who consider processes early and orchestrate them intelligently with the right technology create lasting impact instead of isolated solutions.

The Pitfalls of Traditional Digitalization Projects

A real-world example from project work:
A company launched an ambitious digitalization initiative involving multiple sub-areas. In this case, it was an infrastructure expansion including the following fields:

  • Acquiring customers and partners

  • Comprehensive planning tasks

  • Construction and installation work

  • On-site coordination

  • Sales activities to attract new clients

  • Marketing and advertising

  • Contract handling and execution

Initial setup:
The company invested in a large-scale transformation project, relying on traditional project management tools and a CRM system. Plans were detailed, teams were highly motivated.

The sobering reality soon exposed the limits of this approach:

  • Recurring workflows were handled inefficiently

  • Coordination needs between teams and systems were enormous, causing delays

  • The traceability of individual process steps was lacking

  • Quality and speed suffered due to missing process integration

The direct consequences:

  • Significant project delays

  • Budget overruns

  • Customer dissatisfaction due to extended delivery times

Project management alone was not sufficient to steer such a complex initiative effectively. A process-based approach within the project was required.

Why a Purely Project-Focused Approach Fails

The experience of this company is far from unique. Studies confirm that many digital transformation initiatives fail to reach their full potential because they are implemented using standard software and (multi-)project management tools.

Typical symptoms include:

  1. Media Disruptions and Data Silos
    Project teams use their own tools, while day-to-day operations are handled in other systems — sometimes even manually.

  2. Lack of End-to-End Thinking
    Projects focus on their specific goals without integrating into existing business processes.

  3. Limited Scalability
    What works during the project phase often fails when scaled for live operations.

  4. Workarounds Instead of Integration
    Employees create their own temporary solutions when the process and tool support don’t meet day-to-day needs.

For CIOs, COOs, and other decision-makers, one core question arises:
How can we ensure that our digital transformation projects have a lasting impact and are scalable in day-to-day operations?

The Complementary Power of Project and Process Management

Strengths and limitations of modern project management tools:

Project management is a key instrument for driving change. It provides structured methods for planning initiatives, using resources efficiently, and systematically implementing innovative ideas.

Typical strengths include:

  • Focus: Teams, budgets, and timelines are aligned toward specific goals

  • Innovation Drive: New ideas are introduced into the organization through clearly defined projects

  • Flexibility: Project teams can respond quickly to new requirements

However, in practice, it becomes evident that project management alone is not enough.

The limitations of project-centric thinking became clear in our case study company:

  • Projects have a defined start and end yet the real value creation happens in ongoing operations

  • The focus is often on one-time planning, not on repeatable or reusable processes

  • After the project ends, there's often no structural integration into the broader organization

How Process Management Closes the Critical Gap

The company realized that the real challenge wasn’t in project management — it was in the day-to-day operational management:

  • Standardization of recurring workflows: for example, from customer inquiry to go-live

  • Seamless integration of various systems: from planning and construction supervision to billing

  • Transparency and traceability: having a clear view of the status of every order and job site at all times

  • Scalability: the ability to handle increasing numbers of inquiries and projects efficiently

Process management and project control are the perfect match. Together they deliver the key success factors:

  • Clear project planning as a strategic framework

  • Thoughtfully designed end-to-end processes for everyday operations

  • Clearly defined responsibilities in every phase

  • Automated handovers between teams and systems

  • Continuous measurement and optimization of processes

The Synthesis: How Integration Works in Practice

The Solution: A Hybrid Approach

The company chose a hybrid approach. Strategic goals continued to be guided through project management, while day-to-day execution was handled via structured and automated processes.

In practice, this meant:

1. Define and automate core workflows

    • Standardized process from customer inquiry to active connection

    • Progress tracking through defined milestones

    • Automated status updates and handovers between teams

2. Create a strong technological foundation

    • Implementation of a process automation and orchestration platform (Axon Ivy platform)

    • Integration with existing systems (CRM, ERP, GIS, project tools)

    • Unified user interface for all involved stakeholders

3. Establish measurable KPIs

    • Lead times from inquiry to implementation

    • Number of handoffs per order

    • Error rates and need for rework

    • Customer satisfaction throughout the process

The Result:
By combining project management (for strategy) and process management (for execution), the company not only achieved its project goals but it exceeded them:

  • Significantly faster execution of projects and tasks

  • Dramatic reduction of manual steps and follow-up work

  • Full transparency into the status of every operation

  • Notably higher satisfaction among both customers and employees

Learn how others have overcome this challenge in our customer success stories.

Four Principles for Successfully Combining Project and Process Management

Based on the experience of this company, four key principles emerge for effectively integrating project and process management:

  1. Plan with a Process Mindset
    Even during the project definition phase, consider how future operations will integrate into the process landscape. Specifically:

  • Identify relevant processes early

  • Plan integration into existing workflows from the beginning

  • Involve process owners at an early stage

  1. Think End-to-End
    Digitalization doesn’t stop at team or system boundaries. What matters is the bigger picture. Specifically:

  • Map the entire value stream, not just isolated steps

  • Identify handoffs with upstream and downstream processes

  • Ensure seamless transitions between teams

Discover how Axon Ivy’s orchestration capabilities help you bridge silos and streamline complexity.

  1. Use Technology as an Enabler
    The right platform forms the backbone of scalable digitalization. Specifically:

  • Rely on flexible automation and orchestration platforms that allow quick adjustments

  • Integrate existing systems using API-based architectures

  • Leverage process mining for ongoing optimization

  1. Clearly Define Responsibilities
    The transition from project mode to operational process requires clearly assigned roles. Specifically:

  • Appoint explicit process owners

  • Establish a dual governance model (project + process)

  • Define the handoff point from project planning to regular operations

Conclusion: Sustainable Transformation Through Smart Integration

Practice shows clearly: this is not an either-or between project and process management, it’s about intelligently combining both.
Projects spark change, drive innovation, and focus on new goals.
Processes secure long-term success through stable workflows, clear responsibilities, and scalability in day-to-day business.

Key Insight for Decision-Makers:
Transformation starts with a project but it only becomes effective through process execution. Those who combine both disciplines in their digital initiatives don’t just create quick wins, they build lasting competitive advantages.