Why SAP and PLM Projects Fail: TOGAF’s Seven Levers of Digital Transformation
Can implementing SAP S/4HANA or PLM alone achieve digital transformation?
The answer is NO!
Across many Tier 1 automotive suppliers, the same pattern appears repeatedly:
- SAP is implemented, but operations remain unchanged
- PLM is deployed, yet engineering data does not flow into the supply chain
- Data is collected, but decision-making does not become faster
The root cause is clear: organizations treat system implementation as the goal, rather than designing enterprise-wide transformation.
TOGAF® (The Open Group Architecture Framework) addresses this issue by structuring digital transformation into the Seven Levers of Digital Transformation. These “levers” represent the fundamental drivers required to achieve real enterprise change. SAP and PLM are only one part of the picture.
The Seven Levers of Digital Transformation (TOGAF®)
Lever 1 – Strategy
Definition
Define competitive advantage and align all transformation initiatives with business strategy.
The first decision is not:
“Which ERP should we implement?”
The real question is:
“What will we win with in five years?”
Tier 1 Example
Automotive suppliers are facing major shifts:
- Electrification (EV)
- Software Defined Vehicles (SDV)
- CASE trends
A leading supplier defined its strategy as:
“Transform into a high-value EV component manufacturer.”
Only after defining this strategy do roles for:
- PLM
- SAP
- MES
- AI
become clear.
Strategy is the starting point of all transformation.
Lever 2 – Customer Experience
Definition
Digitally transform customer touchpoints to deliver new value.
For Tier 1 suppliers, customers include:
- OEMs
- Aftermarket
- Service organizations
In many companies, when OEMs ask:
- “What is the delivery status?”
- “What is the impact of this design change?”
Teams still search through Excel files.
Digital transformation aims to enable OEMs to access in real time:
- Inventory
- Production status
- Quality metrics
- Shipment status
This shift fundamentally changes customer expectations and trust.
Lever 3 – Product & Service
Definition
Digitize not only products, but also the services around them.
Traditionally:
Selling a component was the end of the value chain.
Today:
Component + Data = Value
Example (Brake Manufacturer)
- Sell components
- Collect IoT data
- Predict failures
- Provide maintenance services
PLM becomes the backbone that manages this entire lifecycle.
Lever 4 – Business Process
Definition
Redesign processes end-to-end.
A common SAP failure pattern is:
Simply migrating existing processes into SAP without redesign.
TOGAF® emphasizes a full value chain perspective:
- Sales
- Engineering
- Procurement
- Manufacturing
- Logistics
- Service
Tier 1 Example
A single flow includes:
Design change → BOM update → MRP → Procurement → Production → Shipment
This is why PLM and SAP integration is critical.
Lever 5 – Organization & Culture
Definition
Transform people, decision-making, and organizational culture.
This is often harder than implementing SAP.
Typical challenges:
- Plant managers rely on experience
- Procurement relies on intuition
- Sales relies on instinct
Digital transformation requires:
Data-driven decision making
This impacts:
- KPIs
- OKRs
- Governance
- Authority models
- Performance evaluation systems
Without changing these, transformation does not happen.
Lever 6 – Technology
Definition
Build IT architecture to enable strategy.
Only at this stage do technologies appear:
- SAP
- PLM
- MES
- Data platforms
- AI
- Cloud
SAP is not digital transformation.
SAP is an enabler.
Tier 1 Integrated Architecture Example
- PLM
- SAP S/4HANA
- MES
- IBP
- Supplier Portal
- Data Platform
- AI
Value emerges only when these are connected.
Lever 7 – Ecosystem
Definition
Create value beyond the enterprise, including partners.
For Tier 1 suppliers, transformation cannot stop internally.
It must extend across:
- OEM
- Tier 1
- Tier 2
- Logistics providers
- Material suppliers
Example
In a quality issue scenario, within minutes you can trace:
- Which component
- Which lot
- Which supplier
- Which vehicle
This interconnected visibility is known as the Digital Thread.
What SAP and PLM Project Managers Must Understand
In many projects, the goal becomes:
“Implement SAP.”
But in TOGAF®, SAP implementation is only part of the Technology lever.
Project managers must continuously ask:
- Does this project realize business strategy? (Strategy)
- Does it improve OEM value delivery? (Customer Experience)
- Does it evolve products and services? (Product & Service)
- Does it optimize end-to-end processes? (Business Process)
- Does it change decision-making and culture? (Organization & Culture)
- Is the IT architecture scalable? (Technology)
- Does it extend value across the ecosystem? (Ecosystem)
By evaluating all seven levers from the design phase, SAP and PLM become platforms for transformation—not just systems.
Conclusion
TOGAF’s Seven Levers of Digital Transformation are not a framework for implementing ERP, PLM, MES, or AI individually. They are a design philosophy for transforming the entire enterprise.
For Tier 1 automotive suppliers facing electrification, SDV, and increasing supply chain complexity, Enterprise Architecture plays a critical role in orchestrating these seven levers.
SAP and PLM project managers must go beyond delivering systems on time and within budget. The real question is how each lever contributes to enterprise value.
Sustainable digital transformation is achieved only when all seven levers are aligned and executed as a unified strategy.
Reference Links
This article is based on publicly available information and industry best practices from the following sources.
- The Open Group
- TOGAF® Standard, 10th Edition
- https://www.opengroup.org/togaf
- The Open Group Library
- TOGAF® Series Guides
- https://publications.opengroup.org/
- SAP
- SAP S/4HANA
- https://www.sap.com/products/erp/s4hana.html
- SAP Supply Chain Management
- SAP Digital Manufacturing
- SAP Integrated Business Planning (SAP IBP)
- SAP Business Technology Platform (SAP BTP)
- Siemens Digital Industries Software
- Teamcenter PLM
- https://plm.sw.siemens.com/
- PTC
- Windchill PLM
- https://www.ptc.com/
- Dassault Systèmes
- 3DEXPERIENCE Platform
- https://www.3ds.com/
- Gartner
- Enterprise Architecture Research
- https://www.gartner.com/
- IDC
- Digital Transformation Research
- https://www.idc.com/
Disclaimer
Parts of this article were developed with reference to generative AI suggestions and were reviewed, refined, and supplemented based on the author’s professional expertise and judgment.
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