By: Natalie Johnson
Business transformation is entering a new phase as organizations confront tightening global conditions, rising costs, and accelerating technological change. At the center of this shift are competing pressures. Companies are pursuing enterprise scalability while simultaneously demanding cultural alignment, cost efficiency, and operational control. The result is a more constrained environment for business transformation, particularly for organizations operating across borders. Christophe Derdeyn, Managing Director of Icon Consulting Group’s Services line of business, sees that success in 2026 will depend on clarity of direction. “Global transformations become more difficult because of geopolitics, experience, and sentiment,” Derdeyn says. “That puts a significant burden on any type of transformation you want to do.”
Derdeyn brings more than two decades of experience in business transformation, enterprise resource planning (ERP) modernization, and IT innovation across global markets. As co-founder of Delaware Southeast Asia, which scaled to more than 500 employees by the time he left, he helped enterprises navigate complex systems integration, shared services, and operating model changes across Southeast Asia. That experience now informs a more pragmatic view of transformation, one that shows how other organizations can approach the challenges ahead.
The Expanding Scope of Transformation Challenges
The traditional model of global delivery is under strain. While offshoring once enabled cost savings, many organizations now face cultural complexity and quality concerns. Businesses want low-cost execution, yet increasingly prefer teams that share language, culture, and context. This tension is reshaping decisions about operating models. Nearshore strategies are emerging as a middle ground, offering a balance between affordability and cultural proximity. However, this approach introduces its own challenges in systems integration and coordination across distributed teams.
“You need to have someone who fits the right picture to engage the business,” he says. “To make your transformation successful, you really need to put yourself on the same level as the people that are going to be affected.” This human layer remains critical even as digital infrastructure evolves. Without it, even the most advanced ERP modernization initiatives risk resistance and misalignment.
ERP Modernization Requires a Stronger Foundation
Many organizations are accelerating ERP modernization and IT innovation, often layering new tools onto existing systems. Fragmented implementation, however, is creating long-term inefficiencies. “What seems to be happening pretty much everywhere is piecemeal implementations,” Derdeyn says. “It will bring value in specific areas, but it will create complexity for the future.”
The alternative is a more deliberate approach. Before investing in new platforms or cloud solutions, organizations must take stock of their current systems, processes, and performance. This baseline enables effective systems integration and supports long-term scalability. Without it, transformation becomes reactive. “If you don’t have the right basis, it’s garbage in, garbage out,” Derdeyn says. This challenge is not new, but it is becoming more urgent as businesses attempt to scale enterprise operations globally under tighter constraints.
AI as Both Accelerator and Pressure Point
With AI, tasks that once required multiple people over several days can now be completed in hours, significantly improving efficiency. This shift is particularly evident in requirements gathering and process analysis. AI-enabled tools can capture tacit knowledge, analyze workflows, and consolidate insights with minimal manual effort. The result is faster, more comprehensive visibility across the enterprise.
However, this acceleration introduces new pressures. As productivity increases, market expectations are shifting. “The market will also expect you to deliver more with less because we use AI,” Derdeyn says. “If your competitor saves three hours and you don’t, you’re not going to be competitive.” For professionals, this marks a fundamental change in how value is created. The ability to scale output through AI is becoming a baseline expectation rather than a differentiator.
The Rise of Data-Driven Operating Models
One of the most significant developments in business transformation strategies for growth markets is the ability to integrate multiple AI capabilities into a unified enterprise view. New tools can reconstruct real-world processes from transactional data while simultaneously capturing employee insights. Together, these capabilities provide a detailed understanding of operational gaps, inefficiencies, and opportunities. For organizations, this represents a shift toward more data-driven operating models. Decisions can be made with greater precision, reducing wasted investment and improving outcomes.
“You will actually have an amazing understanding of where the big challenges in an organization are,” he says. “And then you can make much better informed decisions on what to do first.” This level of insight was previously limited to large enterprises. Today, even smaller consulting firms can leverage these tools to deliver high-impact transformation programs.
The Unanswered Question of AI Economics
Despite its potential, AI introduces an unresolved challenge: cost sustainability. Current pricing models do not reflect the true cost of development and infrastructure. “I think none of us are currently paying the right price for what we do with AI,” Derdeyn says. “These companies are burning billions every quarter.”
As investment slows, pricing is likely to adjust. This could fundamentally change the economics of IT modernization for large enterprises and smaller firms alike. If costs rise significantly, organizations may need to reassess the balance between automation and manual work. The long-term viability of AI-driven transformation will depend on whether the value continues to outweigh the expense.
A More Deliberate Path Forward
The defining characteristic of business transformation challenges in 2026 and beyond is not simply technological change, but the need for intentional design. Organizations must align their digital infrastructure, evolving operating models, and human engagement into a cohesive strategy.
Derdeyn’s perspective reflects a broader shift in thinking. Transformation is no longer about rapid adoption alone, but about building systems that can adapt, integrate, and scale over time. As enterprises navigate ERP implementation and optimization for their complex business environments, the ability to balance cost, culture, and capability will determine success.
Follow Christophe Derdeyn on LinkedIn or visit his website or his company’s website for more insights.
Disclaimer: This content is intended for informational purposes only and does not constitute legal, financial, or business advice. Readers should consult with appropriate professionals for specific advice or guidance related to their individual business needs or circumstances.
