This post concludes my blog series on Leveraging TPS/Lean for Transformation in the Digital Era. In the previous installment, Preserving the Power of Toyota’s Obeya, I explored how Toyota’s visual management approach translates strategy into aligned, actionable steps.

In this final piece, I focus on key enablers of successful digital change: organizational leadership, clear and stable processes, and intentional change management. These elements ensure that digital initiatives deliver meaningful and sustainable outcomes.

I will use TPS and Lean as interchangeable terms, concentrating on their contributions to value creation, problem-solving, and continuous improvement in today's digital landscape.

When Did Enterprise Tools Drift Away from Lean?

Over the last twenty years, companies invested heavily in enterprise systems like ERP, QMS, and MES. Initially these systems transformed operations by centralizing data, enforcing standardization, and providing real-time visibility.

However, they now seem outdated and disconnected from frontline users. Intended to enhance clarity and control, they often hinder information flow, consume substantial resources in troubleshooting and maintenance.

So, what went wrong?

A "technology-first” mentality replaced "problem-first" thinking. Deploying technology without a clear strategy and purpose, broken processes, disconnected workflows, a lack of change management, and unprepared staff led to issues.

Many enterprise systems did not resolve existing process flaws; they merely automated them. Inefficient processes were encoded in software, essential user requirements were overlooked, causing disjointed workflows and unnecessary complexity.

The outcome?
Processes central to improvement initiatives were overshadowed by data management. Factors like "data accuracy" and "system usage mandates" gained precedence over process simplicity and customer value.

By digitizing ineffective processes, accountability became diluted, while reworking to improve data accuracy introduced new challenges. Problem-solving digital processes now require two people: the process owner and IT. How is this Lean?

This underscores the need for critical thinking when introducing digital tools. Without a clear strategy or stable processes, layering technology only digitizes dysfunction, hiding problems, increasing complexity, and demanding even more resources to fix them.

Let the Process Simmer: Don’t Digitize Chaos

A common theme that arises in digital transformation discussions is that organizations frequently invest in new technologies without first refining their existing processes, leading to disappointing outcomes.

The crucial initial step for successful digital transformation is understanding and stabilizing your processes. Without stabilization, the tools you introduce will amplify inefficiencies, rather than eliminate them.

Digitizing a broken process doesn’t resolve the issue. You are just automating waste faster.

Process Digitization: When to Pause vs. When to Go

Consider this perspective: “Digitizing waste only increases costs due to the additional resources required for rework, such as improving data accuracy." Furthermore, this data incorporates waste. This does not support Six Sigma initiatives, does it?

The primary focus should be on improving processes before considering automation. Only when processes are stable and efficient should you think about incorporating digital tools.

Lean + Digital: What ‘Good’ Looks Like When Tech Serves the Process

When digitizing a process with Lean principles, the focus centers on enhancing value flow, maintaining simplicity, and empowering users.

Here’s how it looks in practice:

What Good Looks Like in a Digital Lean Process

In one instance, we implemented a new QMS software, but the out-of-the-box CAPA process felt cumbersome and lacked flow. I redesigned it using the PDCA model, incorporated workflow statuses, and established smart notifications. The result? Improved adoption, clearer ownership, and CAPA phases that fostered action.

Effective digital processes empower people, streamline value flow, and drive continuous improvement, rather than add complexity.

Understanding the target condition is the first step. Now, let’s review the key roles that bring it to life.

Who’s Driving the Digital Bus? The Roles That Fuel Digital Success

A common misstep in digital transformation is when the IT department takes control while functional process owners play passive roles.

In my experience, this misalignment reveals deeper issues, such as unclear ownership and a lack of process accountability. Consequently, when challenges arise, the IT department is unfairly blamed.

For digital transformation to deliver real value, the people who own and understand the processes must lead the charge. Success relies on well-defined roles within the organization, with IT providing support and expertise but not driving the change.

Aligning people, roles, and responsibilities ensures that digital tools reinforce Lean principles and business goals, rather than introducing complexity.

Here’s an overview of the ownership roles essential for effective transformation:

Each role is interconnected and essential to ensuring that people, processes, and technology are aligned to achieve a successful transformation.

Before investing in digital tools, identify the real problem you’re trying to solve, define roles at every level, and create a straightforward execution plan. Business and operations should lead implementation, not solely IT.

Avoiding the Pitfalls: When Digital Transformation Goes Wrong

Even with top-notch digital tools and talented teams, setbacks can occur if the transformation is not managed with clarity and intention. Success doesn't hinge solely on tools; it’s their integration into your processes, culture, and daily operations that ultimately influences outcomes.

When digital transformation efforts fall short, it’s rarely due to the technology itself. More often, it’s due to misalignment of underlying processes, roles, or behaviors prior to launch.

Here are some of the most common pitfalls that can derail your digital journey:

To avoid these pitfalls, ensure clear alignment among teams, define ownership roles, and engage all stakeholders from the outset. Focus on process stability before digitization, ensure technology reflects actual workflows, and continuously gather feedback to refine and enhance the digital tools.

Various consulting groups indicate that 70% of digital transformations fail due to workforce resistance. The human element is crucial for enabling sustainable change. People need to understand the "why" before the "what" and "how."

The Future of Digital in Lean: Finding the Right Balance

As companies accelerate digital transformation, they must incorporate digital tools while keeping Lean principles at their core:

Technology should support problem-solving and critical thinking, not replace them.
Lean thinking must guide digital transformation, not the other way around.
Implementing technology should create value for the users and customers.

The Toyota Production System framework, sometimes called the Thinking People System, demonstrates that true strength lies in developing human problem-solvers to be critical thinkers. People find meaning and purpose through their work by actively contributing, learning, and improving.

Final Thoughts: True North – Develop People Before Platforms

Organizations often rush into digital solutions, expecting technology to resolve long-standing issues. However, no platform can replace critical thinking, ownership, or collaboration.

Without the right mindset, skills, and understanding, even the most advanced tools will be ineffective.

Sustainable transformation begins by empowering people to lead change, take ownership of their work, and make informed, intelligent decisions.

Because at the end of the day, it’s not about technology, it’s about the people who use it.

It always comes down to people.

Are your systems addressing real problems, or just creating new ones?
How does your company foster or support critical thinking?
What other topics would you like to see?

Your insights and perspectives are valuable—please share your thoughts in the comments below.

To leave a comment: Press Post Comment and Okay. Enter your Comments and press Post Comment.
Enter your name or initial (you do not need to provide an email or URL) and click Comment as Guest to post.

#5: Digital ≠ Transformation: Why People, Purpose, and Process Still Matter