The Essay On Hilti Group's Salesforce Migration Highlights Digital Transformation's Significance.

Digital Transformation Projects for Hilti Group

In this new era of technology, most companies migrate their services from SAP to a new cloud-based CRM system (Grzesch 2021). In order to stay competitive and gain sustainable commercial growth, migration has become necessary. The nominated company for which this report is prepared is named “Hilti Group”, a Schaan, Liechtenstein based company that develops, manufactures and markets products for the construction, building maintenance, energy and manufacturing industries.

The Hilti Group is interested in migrating from SAP to Salesforce to expand its sales and marketing opportunities in the competitive market. The requested change was already initiated in 2018 but it is not yet accomplished. The project report is supported by a project selection and portfolio management, organizational context, detailed project governance framework, leadership and advanced planning and scheduling, managing and leading change and self-evaluation. It is expected that the successful accomplishment of the project will give Hilti group adequate flexibility, easy managerial opportunities, standard API links, the largest and most secured web platform and countless options to access various apps.

Explain what type of projects are expected the company to pursue

The strategic objective of the Hilti group is to create sustainable value through market leadership and differentiation. Market leadership can assist the business in obtaining high price than the business and market share. It will also help the company manufacture high-quality products with a low share competitor (Turner 2020). After analysing the strategic goals and direction of the company, it can be said that different digital platform transformation-based projects are best for Hilti Group to pursue. Digital platform transition is linked to market leadership. Digital platforms like CRM, ERP, and SCM are software-based solutions that enable business organizations to implement and manage each level of business practices. The projects that are expected to be implemented by the organization are- the implementation of a Customer Relationship Management system, implementation of a Supply chain management system and the implementation of an enterprise resource planning project. These types of software help to connect different sources of information. It also helps to organize the business practices and elements of the digital platform in the proper place. CRM tool also helps to collect, store, organize and save data in a way to make the business process easier and accessible to every authorized business user.

Hilti Group is responsible for developing, manufacturing and marketing products for manufacturing industries, energy-based industries, construction industries and building maintenance industries. Hilti Group is a customer focused company. Manufacturing and delivery of quality products not only helps the Hilti group to gain commercial profit but also helps the different mentioned industries to gain sustainable growth in the competitive growth (Cha, Newman and Winch 2018). Therefore, the Hilti group must establish a strong relationship with the customers. In order to fulfil the business requirements, the Hilti group should constantly gather valid information, get embedded within the business strategy, emphasize customer retention and examine customer engagement. In order to fulfil these business requirements, Hilti Group should pursue digital transformation projects because it will give better customer services, assist the company in enhancing its sales, improve the customer retention program, provide details analytical opportunities, improve the business efficiency and productivity, manage team communication with prospective lead and improve customer segmentation as well.

Project Selection and Portfolio Management

For selecting the project, the suggested best screening module is a simplified scoring model. This is a pairwise model or simple grid that the project manager and team can utilize for comparing multiple projects or the elements of different projects with each other on time. Based on importance, it helps to create a list of important elements. An organization does not need to run only one project at a time. In other words, a business can run multiple numbers of projects at a time. However, the priority of all the projects cannot be same. Based on the different factors, the project should be prioritized. An organization can be confused about which project to execute with high priority (Dobrigkeit, Wilson and Nicolai 2018). The scoring model is the best solution that can assist an organization in selecting best project. A structure of a scoring model is presented here- 

The selection of the scoring model for the project is justified because this is one of the most commonly used models in business organizations that include risk, cost and time related all factors. Projects are always more complicated than simple activities. The scoring model helps to create a holistic view to include the best criteria. Maximum 5 numbers of criteria should be selected in this approach to conduct the scoring analysis. On a scale numbering between 0-and 5, the scores should be provided. The categories that can be used by the business organizations are strategic criteria, financial criteria and risk factors (Nigmatovich 2020). A good scoring model will always align the governance team on high level value work and measure the risks and value for the portfolio. It will help to assign comparative value to one or more than one projects. It will also allow the governing team to rank potential projects depending on criteria like cost, risk level, financial return value, time etc.

 Portfolio management is a selection, prioritization and organization’s project and program control approach, in line with delivery capacity and strategic objectives. The primary objective of implementing a portfolio management plan is to balance the implementation of change initiatives with the maintenance of business as usual. Project portfolio matrix design and execution is the best approach recommended to the Hilti group. In order to manage a portfolio. At first, the project manager should determine the business objectives, collect respective research information on potential projects, narrow the list and also select the best project among the many available projects (Calabrese, Camaioni and Piervincenzi 2019). After that, the project feasibility and initiated projects should be validated accurately. Then finally, the portfolio should be monitored and managed accurately. The project portfolio matrix is known as the BCG matrix.

 

Figure 1: Project portfolio matrix framework

(Source: Prasad Sharma 2020, pp-11)

This framework enables the companies to manage their product lines successfully. The project portfolio matrix comprises four quadrants bread and butter, pearl, white elephant and Oyster. Based on the net present value that can give success to the company and technical feasibility, the elements of the project portfolio matrix are scored by the professional project associates. The company is suggested to utilize this model or framework. Bread and butter projects usually include evolutionary improvements to current products and services. The pearl projects include the representation of commercial advances using proven technical advances (Kolesnikov et al. 2019). Oyster projects involve technological breakthroughs with high-level commercial payoffs and the white elephant projects that at one time showed promise but were no longer viable. An effective project portfolio matrix helps to improve project selection processes and gives a better view of the big picture. It will ensure efficient usage of competition and increase timely project deliverables. Most importantly, the probability of risk occurrences will get reduced with this practice.

Project Portfolio Matrix Design

Company’s strategic choice

Hilti group is interested in creating sustainable value through market leadership and differentiation. Through digital transformation and implementation of advanced unique IT based projects, the company can easily become a market leader. In 2018, the Hilti group migrated from SAP to Salesforce (a new cloud-based CRM system). Salesforce is the best customer success platform. Customer 360 is the breadth of Salesforce technology. This is an integrated CRM platform that helps bring the company’s operations and customers altogether from different sources. The concept of customer 360 helps to integrate sales, commerce, service, marketing and IT departments with easy understanding and shared data on an integrated CRM platform.

The new cloud-based CRM system implementation project is linked to the company’s strategies direction and goals.  

TOWS matrix is a very useful way to identify the connection between projects and the strategic choices of the organizations. Using this matrix, the strategies of the Hilti group can be formulated by identifying the internal strength and weaknesses followed by external opportunities and threats (Pei 2021). The maxi-Maxi strategy addresses the internal strength and weaknesses and external threats and opportunities.

	External opportunities · It will allow economic recovery · allow nee taxation policy · open new market using government agreements · It will establish stronger relationships among the customers and the service providers	External threats · It may create effective market level competition · it can force the company to take legal actions · Diverse work culture can be developed    · It may require additional investment to improve further technical areas
Internal strength	“Maxi-Maxi” Strategy · The salesforce's new cloud-based CRM system generates good positive ROI · The system always has highly skilled labours · It will give free cash flow · In the new market, the system will allow the company to perform uniquely	“Maxi-Mini” Strategy · It will help the company to recover from the economic situation · develop new taxation policies · develop new environmental policies · allow gaining new customers through online platforms and · through government agreement, it will allow gaining new competitive market
Internal weaknesses	“Maxi-Maxi” Strategy · The level of competition is very high · requires high financial planning · The sales team need to conduct effective product marketing · for managing labours, the high outflow is noticed · Salesforce has a different work culture · The system needs investment in different advanced technologies	“Maxi- Mini” Strategy · need to implement liability laws · required legal action to fight again legal technology-based problems · the system operates globally, which is a major threat · Quantitative increment in commodities.

 

Figure 2: Tow’s matrix framework

(Source: created by author)

In order to enhance the likelihood of the success of this project, the organizational structure suggested for the company is a hybrid organizational structure. In order to design and implement any project successfully, the project manager needs to distribute the roles and responsibilities among the team members successfully. Depending on the skills and areas of interest, the roles should be distributed among the team members. The corporate structure is referred to as an organization of various departments of business units. Based on the company’s strategic goal and the industry where it operates, the corporate structure should be created (Amer and Elayoty 2018). The project, which the Hilti group implements is the “implementation of salesforce, new cloud-based CRM system”, requires a hybrid group of different members with high-level technical skills. In such an organizational structure, each department is responsible for performing a specific function and should continuously collaborate with other functions to achieve the strategic business objectives.

SAP CRM and the Salesforce CRK are almost similar to each other as per the functionality. However, according to Nordin et al. (2022), the salesforce works better than the SAP CRM. In order to migrate to the Salesforce platform from SAP CRM, the stages that are mandatory to perform include- preparation of license agreement, design use cases, considerations (as per SAP connector guidelines), disclaimer, SAP considerations, identification of data sources, salesforce considerations, final migration and run the final version on studio. In order to perform all these activities, it is essential to have large numbers of skilled departmental resources. The resources must have adequate knowledge and previous experiences. Therefore, to manage such projects, it is recommended to apply a Hybrid organizational structure.

The hybrid organization structure is similar to the matrix structure. It is a combination of functional structure and divisional structure. A hybrid structure segments its activities into different departments (functional or divisional). This organizational structure also ensures the proper utilisation of available resources (Othman and Bamasood 2021). This kind of organizational structure is usually adopted and applied by large business organizations.

Conclusion

Strengths and weaknesses of the Hybrid organizational structure

strength

weaknesses

· A hybrid organizational structure helps to keep the employees happy and connected · It allows flexibility to the employees to produce effective outcomes · it helps to improve the company culture · A hybrid organizational structure creates a much more effective workplace · It helps to cut down or lower the operational cost

· The salesforce project team usually includes employees from remote locations. Managing employees from a remote location are difficult for the hybrid organization structure · sometimes workplace technologies, communication tools fail to perform within the work setting · the rate of employee burnout is higher than others · Managing a hybrid schedule is very difficult (Pasupuleti 201) · For all types of industrial works for the Hilti group, this organizational structure is not helpful

Based on the strength of the hybrid organizational structure, it can be said that migrating from SAP CRM to Salesforce using this structure is beneficial. It will help the employees to work happily. It will also keep the employees engaged with each other. The overall culture of the company will be improved a lot. It can develop an effective workplace for the staff with international working zone and hot desking options. It will ensure amazing space management opportunities. This system will help to minimise the operational cost.

There is different IT project governance framework available, used by the professionals. The governance frameworks are- P3M3, stage-gate, OGC Gateway, Winch, and Norwegian QA. The features and categories of these frameworks are different from each other.

In order to govern any project towards the strategic objectives, the project manager and team must adopt and apply an accurate governance framework. The principles of the governance framework to be followed are strategic alignment and active portfolio management. Board accountability, continuous improvement, business cases, independent assurance, empowered decision making, active risk management, stakeholder engagement, roles and responsibilities distribution, realistic planning, business case validation etc. In this section, two project management governance frameworks are compared. The two Project governance framework selected here are- the P3M3 OGC Gateway framework. Both frameworks have different advantages and disadvantages. The comparison is presented below in a tabular format-

	P3M3 framework	OGC Gateway framework
Advantages	· P3M3 framework covers effective internal control of project initiatives. This approach characterises leadership and direction with clear evidence. · This model also allows benefit management. The process ensures desired business change outcomes are defied. The organizational areas need to assess and approve the benefits. The approach owns operational transition with effective follow up for each activity.  For effective change management for managing complexity, this approach is very beneficial. · The framework gives financial management success opportunities as well. It improves the decision-making process with forma; stage review · The framework helps to keep all the stakeholders engaged in the project development activities · The framework is beneficial for organizational governance and risk management	· This framework ensures the business case and objectives are clearly defined · This framework confirms necessary statutory as well as procedural requirements · It also ensures procurement and evaluation processes during the project cycle are followed successfully as per project objectives · The project team can get continuous support from the team members with this framework · The actions taken for the business success can be easily evaluated with this framework
Disadvantages	· Managing a project using this framework is very complex	· The framework required pre-tender estimation, which is quite difficult and time-consuming. · It requires the team to negotiate the project's progress

Based on the project scenario and strategic components, it has been determined that, between these two mentioned governance frameworks, the P3M3 framework is best suited for the Salesforce migration. It is a framework where all essential decisions related to IT are closely monitored. The migration from SAP CRM to Salesforce is a major IT project and requires close monitoring of different components like- framework. Business benefits, management, resource optimization, risk optimization, evaluation, direction and monitoring. For IT project governance design of the correct framework is essential. It helps to govern the business process by maintaining all standardized errors. It helps to simplify the overall process as well. With this framework, the project manager and team would be able to manage the project timeline, procurement approaches, risks and communication process.

An accurate framework is the base of any project because it helps to identify the sequential stages to be incorporated within the process. The roles and responsibilities of each of the resources should be properly elaborated to avoid resource overallocation. This framework will support the Hilti group’s salesforce project because it gives major business benefits followed by strategic IT and business objectives, risk management, business continuity management, security and compliance, asset management, secure service delivery and capacity planning.

Migration is not possible without a proper security and adequate management. Throughout the project cycle, the team members need to maintain ethical behaviour. The three positive activities that can be accomplished with the P3M3 framework are evaluation, direction and monitoring (Panina and Dochkin 2019). In other words, with this framework, the project manager will be able to evaluate the business activities and processes in the proper direction. The project team members will be able to evaluate each component of the project related to each stage. Monitoring the project progress also becomes easier with this framework. Once all the rules related to the P3M3 framework are set, monitoring progress becomes very easy. It allows the employees to check the IT compliance properly.

The recommended governance institution for the project is a board of directors.

The proposed governance institution mentioned is suitable for the data migration from SAP CRM to salesforce because these play an important and redistributive role in economic success. It ensures that all the mandatory resources assigned to the project are properly utilized. It also ensures that the departments with few economic resources can be protected during the project cycle. The institution encourages trust and bonding among the team members by giving justice systems and effective policies. Followed by a common set of laws and regulations, the institutions can be utilized.  

Role of the project leader in the project

The Salesforce project leader is responsible for superintending salesforce implementation projects from the initiation up to the ending on various Salesforce clouds and at different levels of complexities. Their priority is to make sure that the project is running and accomplished within mentioned time and budget. It has been determined that the salesforce economy is frequently mounting (Klimek 2018). As a result, the project leaders found themselves in a favourable position in the competitive market mainly due to their growing and in-demand skills and knowledge. The project leader should identify all technical acumen and discover and gather respective requirements.

The project leader also needs to participate in the client discovery process session to identify the technical and functional team members and identify the user stories with eventual translation.  The project leader is also responsible for ensuring that all the team members know the project requirements and strategic business and Hilti group company’s objectives. On-time design and delivery are the other role of the project leader to play. The leader should ensure that the technical team has available all technical tools. Approval of the project phases in building, quality analysis and deployment are the other areas the leader should analyze. Sprint planning and risk management also need to be performed by the leader. Above all the first and foremost role that the project leader should perform is maintaining customer relationship management. The project leader should build and maintain the relationship with the clients regularly to exceed their expectations and make sure their satisfaction.

Working in a project management itself comes with lots of bywords. In order to stay competitive and make the project team members familiar with all the practices. Project champion is a project team member who ensures that all the team members are on board and on track for completing the project successfully within time and budget.  A project champion can support and assist the project components and elements successfully to govern the project activities and ensure it has met the strategic objectives clearly (Nicholas and Steyn 2020). The project champion can overreach the project objectives with all strategic components. The champion can translate the project objectives related to CRM migration and ensure a cohesive process supported by a valid solution. The champion should support the project development activities in terms of initiation, planning, execution/migration, monitoring and closure. Champions should also maintain an accurate timeline and prioritize project budget and phases properly. The leader should keep their eyes on necessary areas of the CRM migration that require massive improvement and possible bottlenecks.

There are different ways through which project champions can be successfully managed. The leader should identify all overreaching strategic objectives of the project. After that, the leader should translate the project objectives to the team members to ensure a cohesive process and project solutions. Then the project leader should track the project development process from the initiation to the project completion (Zuo et al. 2018). For managing the project champion, the leader should analyze the project development methodologies and all related activities utilized. Finally, necessary areas that require improvement should be identified.  

Advantages and disadvantages of two project management methodologies

	waterfall model	Agile model
advantages	· The waterfall model is easy to control and manage from managerial perspectives · The waterfall model allows the project team and manager early determination of the ultimate goals · The project manager can reduce the number of problem areas related to the cloud-CRM migration project using this model · In this model, always the information is transferred quite accurately · In order to assure the project quality, a proper test approach should be conducted	· The agile model allows customer satisfaction with rapid and continuous development by using software · late changes in the project requirement are always possible · Face to face communication is the best way to share information · To the technical excellence and good design, the agile model gives continuous attention · The model allows regular changes in the changing circumstances
disadvantages	· In a waterfall model, implementation of sudden changes is not possible rather difficult · The waterfall model does not include any users and clients with the system (Shkola 2020) · For managing and executing complex projects, the waterfall model is not at all suitable   · The waterfall model includes high numbers of risks and uncertainties	· For delivering large software models, this model is not at all suitable · This project can run off track most often · there is a lack of emphasize on necessary documentation and design · only the senior programmer can effectively decide on resource identification and development processes. · It does not allow the placement of any new programmer in the project phases and planning cycle.

After analyzing the comparison between agile and waterfall models, it is determined that the advantages and disadvantages of both the models are different and varied a lot from each other. For the nominated SAP CRM to salesforce cloud-based CRM migration project, the Agile model is best suited. The agile development model is an incremental model or rapid cycle. In this model, each iteration or release is properly tested and evaluated because each release is built on previous functionality (Richardson and Jackson, 2018). For time critical applications, this model is best suited. Extreme programming is one of the most widely used agile development life cycle models in business success and sustainable organizational progress. The agile development model is a focused customer model.

This model allows customers satisfaction with continuous delivery with useful software. This approach allows face-to-face conversation with continuous attention from the project team members. It also allows regular adoption of the changing circumstances. It gives regular technical excellence. The agile model allows regular changes in the model and allows late changes in the project requirements. For large projects, this model is not at all beneficial. However, for small projects, this model is best suited. For the nominated project cloud migration scenario, it is recommended that the Agile model is best suited.  

The change management process is defined as a major project management knowledge area that helps to implement changes within the project circumstance. Creating a change management plan helps create a smoother transition into project activities. An effective change management plan helps to proactively combat resistance to change. It helps to set clear project goals and allows the project team and manager to monitor the project progress. An effective change management plan helps create strategies to implement changes effectively in the project activities. Change management addresses and balance multiple aspects of changes related to technology, process and people.  

In any project, change management can be incorporated, followed by different change management models such as Kotter’s change model, Lewin's change management model, ADKAR change model, and McKinsey change. All the models have different features and operational specifications. Based on the project criteria and other related features, the best project change model should be incorporated to lead the changes. Kotter’s 8 steps change model is best suited (Froeschl, Wells and Bland 2020). The applications and operations to be performed in the 8 sequential stages are elaborated in the below section-

Step 1- Increase urgency

The probable threats that may hamper the project development activities are- lack of technical support, lack of adequate technical skills among the project team members, no proper project schedule, and no budgetary plan. As soon as the potential threats are identified, the repercussion that may hamper the project's progress in future should be identified. The opportunities that may arise with this effective intervention should be highlighted in this stage.

Step 2- forming powerful guideline coalitions

After creating the urgency, a powerful guideline coalition should be created. In this stage, effective change leaders and stakeholders within the Hilti group should be identified. After that, the weak areas in the cross functional department should be identified at different levels.

Step 3- developing a vision or strategy

  After determining the core business values related to Hilti group’s migration to salesforce cloud-based CRM, Proper vision or strategies must be developed.  After realising the required change within the organization, the core values should be determined.  The change leader needs to ensure that the visions are effective and the associates can easily understand the vision and strategies.

Step 4- Communicate the vision

The project vision should be communicated to all team members and associates. The person responsible for requesting the change must communicate the vision to all the members.

Step 5- Removal of obstacles

Obstacle removal is the fifth stage of the change model. While implementing the changes requested for the project, some obstacles may occur. Removal of all the obstacles is essential. The project leader needs to identify those obstacles and ensure those will be removed from the success roadmap.  

Step 6- creating short term wins

In order to implement the change process successfully, it is important to implement short term wins. It will help the company to meet the project targets.  

Step 7- Consolidating Gains

In order to achieve continuous improvement after analyzing the success stories, individual experiences should be improved respectively (Arcodia, Novais and Le 2020).  

Step 8- Anchoring Change in the Corporate Culture

The success stories need to be discussed with the project team to make the organizational aspects and project change requirements clear.

In order to involve people with the change requested and change process. It is important to follow all the stages sequentially.

From the overall discussion, it can be concluded that to design and develop any project successfully, the project manager and team need to perform with full commitment. The Hilti Group has planned to migrate their business operation platform from SAP CRM to a salesforce cloud-based new CRM system to gain sustainable growth and economic profit. In order to support the project, effective project selection and portfolio management activities are performed. After that, based on organizational context, project governance framework, advanced scheduling and planning and leading change management program (supported with Kotter’s change model) are performed.

Organizational attributes can be either flexibility oriented or control oriented. The organisational attributes that are integral to the successful project execution in an organizational context are- leadership, speed optimisation, applied wisdom and effective communication. From numerous opportunities, using best practices in the global setting, an organization can select projects. The best practices include- a scoring model, cash flow etc. In order to build and lead projects successfully, the essential skills include effective leadership, conflict management skills, risk management skill and decision-making skill. In planning the scheduling, the most suitable techniques include initiation, planning, execution monitoring and closure. These can be applied in the project with project development models like agile, waterfall, scrum etc.

For this task, I have also assessed myself as a distinction. The project is comprised of different sections, and all the sections are done after conducting vast research from separate valid learning materials. I am presenting the detailed evaluation below-

sections	self-evaluation
project selection and portfolio management	I assess myself as distinction because I have followed the marking criteria in detail Because I have identified the probable components and justified those
organizational context	A clear organizational context is elaborated by me, followed by the TOWS matrix (Max-mini strategy and Mini-Mini strategy) Therefore, I can say I deserve a distinction
project governance	OGC gateway framework, P3M3, and stage-gate are the different frameworks I have mentioned in the solution and are differentiated. I have compared the OGC gateway framework and P3M3 to identify the best application framework. I feel that I have done vast research to complete these areas; therefore, I deserve a distinction for this section
leadership	For the leadership section, I deserve either a distinction of merit at least because is have done all the analysis very carefully
Advanced Planning and Scheduling	Comparative analysis s conducted for the scheduling and planning framework and the best one is identified based on project requirements. I also deserve a distinction for this section
Managing and Leading Change	I have applied Kotter’s 8 step change model for the problem area identified therefore, I must say that I deserve a distinction for this part of the assignment

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