Indulge me a tad bit as I draw a comparison I was thinking on the other day. Let me explain.
More significant (shall we say enterprise) F1 teams such as Ferrari, Mercedes, Red Bull, and McLaren spend a yearly budget of almost $400 million for development of the most competitive set of cars for a season. This budget does include the cost of staff members, mechanics, engineers, and drivers. But not all the teams budget is the same. To be in the game, however, they usually fall within the $250 million – $350 million range.
According to some estimates, at least $12.2 million is what’s required to build a single Formula One racing car. The engine is one of the most expensive parts, with the average price being $10.5 million. F1 teams like Mercedes, Ferrari, and McLaren will get help in reducing the cost of the engine; nonetheless, it’s costly.
The average formula one car (yes, just one) uses almost ($500,000) of fuel during a season. That is nearly 53,000 gallons (200,000 litters) in a single season (practice and racing sessions). Just the fuel tank alone can cost upwards of $140,000 with some additional maintenance costs required for it because a single mistake can cause significant fire damage to the car. Catastrophic.
The gearbox is another critical component in the formula one cars. The cars mostly use highly sophisticated semi-automatic, seamless shift gearboxes. The gearbox cost a maximum of approximately $440,000. However, some teams upgrade them even more before the season begins to get better performance, costing an additional $160,000.
Let us also not forget there are THREE types of tires used during a race. A report published about Formula One tires says that a SINGLE SET of tires can cost $1715. The maximum limit of the tires used on the tracks is up to 20,000 miles.
So how does this translate?
Enterprise Digital Business Transformations are very expensive. They are exceptionally complicated, with extraordinary challenges from start to finish. They take tremendous amounts of planning, diligent execution, and many mid-stream decisions that must be enacted with full consideration of both foresight and how all facets of the whole is affected by each decision. It takes an exceptionally talented, and knowledgeable team (consultants, vendors, employees, and leadership) to have any chance of success. Lastly, it can take only one bad season for catastrophic results to derail any hope for the future.
Everything in a DX initiative is like a car. You can have the latest, and greatest technology (SaaS), team members (consultants and employees), mechanics (programmers), a driver (leadership), fuel (data), and perfect conditions on the track (road map), yet still not win the race. Unless everything is in sync, crossing the finish line might not be a viable option.
Platinum PMO is an advocate and advisory in the ever-challenging world of DX. Experience, knowledge, and expertise in guiding clients through programs with relative ease, while providing the needed clarity during crucial decisions is a core value we provide to our clients. Our incredible AMIGO platform gives program clarity, unlike any others within the industry.
Do not hesitate to contact us, and see for yourself how we might be of assistance to you. We revel in solving (often avoiding) problems by providing efficient solutions that help YOU WIN!