what does transformation really mean in the business context?
It’s clear that business transformation has to do with more than just changing a business. In order for a business transformation to be successful, it has got to be practical. That’s because each transformational aspect that’s implemented into a business has to own various disruptions faced by the organization. Business transformation, in this way, can be defined as an effective way to introduce a bold ambition to an existing organization, which goes far beyond the incremental change it’s used to, simply because incremental change is no longer enough for any company to win in an increasingly competitive business environment. This involves the rethinking of your business model to make breakthrough value a reality for a company.
Getting business transformation right requires an enormous range of services, including tools, competencies, enterprise processes, strategic sourcing and funding. But, this is easier said than done. In many cases, not having a goal in sight hinders the transformation process. Various factors such as silos, resource dependencies, lack of governance and ownership tend to impede a business strategy, which is why organizations need to start their transformational journey by placing their constraints under a microscope. This can result in multiple opportunities being unlocked from your core competencies, which will support the process of transformation. It is not uncommon to find companies having to deal with roadblocks during the transformation process. Some of the common challenges that companies face include:
Strategy
A limited connection between process improvement objectives and strategy
Process improvement strategies that do not align to meet business requirements
Execution
A limited focus on the flow of value toward the end customer
A lack of ownership and lack of leadership (governance) across internal business functions
Operations
Processes seem to run into silos, failing to perform beyond departmental and geographical boundaries.
Multiple stakeholders and non-value added activities bog down results.
Improvements
An absence of the right technology to push improvements which also has a negative impact on process efficiency.
Limited availability of data impedes judgement, discouraging businesses to move forward with their business transformation plans.
How we do business today may not necessarily be the way we will do business tomorrow. Market conditions will continue to drive transformation in business globally. Businesses that are prepared for an inconsistent market are better able to adapt to the struggles they face.
In the increasingly complex business environment we live in today, the pace of change represents a unique threat for businesses, along with a lucrative opportunity. In the coming chapters, we are going through the main factors business owners can successfully act on for the immediate transformational needs of their business.
Chapter Two: Begin with a Strategy
Business owners and managers interested in Business Transformation normally have a clear and well thought out plan of action for the transformation process. Oftentimes, a company’s strategic choices are poorly translated downstream to various departments within an organization, even though it is understood by the leadership. This results in a dilution of value.
On the contrary, a sound strategy for business transformation serves as a firm foundation for a broad range of investment decisions during the enterprise-wide transformation, which will also encompass the allocation of resources, performance requirements and technology expectations. Having a clear strategy from the get-go helps shape an organization’s ambition regarding Business Transformation.
It is possible for those companies that have invested in first articulating their transformation strategy to be in a better position to transform their strategy into realistic goals. These are the companies that have a deep understanding of the type of organization they currently are, and the type of organization they are looking forward to creating, which is not only to deliver value but to stay ahead of the competition while reaching their business goals.
This knowledge should lie at the core of any ambition for Business Transformation, and is the reason why businesses need to work towards establishing a strategy with consensus and clarity before embarking on any transformational endeavours. Being on the same page makes it easier for all members of an organization from the senior executives and management to the departmental staff to articulate the desired transformational outcomes. Beginning with a strategy-informed ambition also works well from both an operational perspective as well as a financial perspective. It also helps organizations adjust to the various elements of a business transformation process based on their ability to achieve the articulated outcome.
Chapter Three: Competencies (skills, consulting, resources, procurement etc.)
Chapter Four: Embracing Innovation at the
Speed of Data
Almost all industries highlight the importance of speed in the innovation of data. Embracing innovation allows organizations to take charge of their day to day operational activities as well as their larger strategic objective. For instance, a company is looking to grow its revenue. To meet that objective, it uses marketing analysis to identify where the best opportunities lie. By using enterprise analytics these opportunities can easily be revealed.
Once the product and target demographic have been identified, it becomes easy to define the capabilities required to transform in order to achieve that objective. In this sense, processes and technology both align to the capabilities, enabling improved business process management, training design and overall transformation implementation within an organization. This, in turn, leads to rapid business transformation.
Chapter Five: The Importance of Performance Management
Chapter Six:
So, what does transformation really mean in the business context?
It’s clear that business transformation has to do with more than just changing a business. In order for a business transformation to be successful, it has got to be practical. That’s because each transformational aspect that’s implemented into a business has to own various disruptions faced by the organization. Business transformation, in this way, can be defined as an effective way to introduce a bold ambition to an existing organization, which goes far beyond the incremental change it’s used to, simply because incremental change is no longer enough for any company to win in an increasingly competitive business environment. This involves the rethinking of your business model to make breakthrough value a reality for a company.
Getting business transformation right requires an enormous range of services, including tools, competencies, enterprise processes, strategic sourcing and funding. But, this is easier said than done. In many cases, not having a goal in sight hinders the transformation process. Various factors such as silos, resource dependencies, lack of governance and ownership tend to impede a business strategy, which is why organizations need to start their transformational journey by placing their constraints under a microscope. This can result in multiple opportunities being unlocked from your core competencies, which will support the process of transformation. It is not uncommon to find companies having to deal with roadblocks during the transformation process. Some of the common challenges that companies face include:
Strategy
A limited connection between process improvement objectives and strategy
Process improvement strategies that do not align to meet business requirements
Execution
A limited focus on the flow of value towards the end customer
A lack of ownership and lack of leadership (governance) across internal business functions
Operations
Processes seem to run into silos, failing to perform beyond departmental and geographical boundaries.
Multiple stakeholders and non-value added activities bog down results.
Improvements
An absence of the right technology to push improvements which also has a negative impact on process efficiency.
Limited availability of data impedes judgement, discouraging businesses to move forward with their business transformation plans.
How we do business today may not necessarily be the way we will do business tomorrow. Market conditions will continue to drive transformation in business globally. Businesses that are prepared for an inconsistent market are better able to adapt to the struggles they face.
In the increasingly complex business environment we live in today, the pace of change represents a unique threat for businesses, along with a lucrative opportunity. In the coming chapters, we are going through the main factors business owners can successfully act on for the immediate transformational needs of their business.
Chapter Two:Begin with a Strategy
Business owners and managers interested in Business Transformation normally have a clear and well thought out plan of action for the transformation process. Oftentimes, a company’s strategic choices are poorly translated downstream to various departments within an organization, even though it is understood by the leadership. This results in a dilution of value.
On the contrary, a sound strategy for business transformation serves as a firm foundation for a broad range of investment decision during the enterprise-wide transformation, which will also encompass the allocation of resources, performance requirements and technology expectations. Having a clear strategy from the get-go helps shape an organization’s ambition regarding Business Transformation.
It is possible for those companies that have invested in first articulating their transformation strategy to be at a better position to transform their strategy into realistic goals. These are the companies that have a deep understanding of the type of organization they currently are, and the type of organization they are looking forward to create, which is not only to deliver value, but to stay ahead of the competition while reaching their business goals.
This knowledge should lie at the core of any ambition for Business Transformation, and is the reason why businesses need to work towards establishing a strategy with consensus and clarity before embarking on any transformational endeavors. Being on the same page makes it easier for all members of an organization from the senior executives and management to the departmental staff to articulate the desired transformational outcomes. Beginning with a strategy-informed ambition also works well from both an operational perspective as well as a financial perspective. It also helps organizations adjust to the various elements of a business transformation process based on their ability to achieve the articulated outcome.
Chapter Three: Competencies (skills, consulting, resources, procurement etc.)
Chapter Four: Embracing Innovation at the
Speed of Data
Almost all industries highlight the importance of speed in innovation of data. Embracing innovation allows organizations to take charge of their day to day operational activities as well as their larger strategic objective. For instance, a company is looking to grow its revenue. To meet that objective, it uses marketing analysis to identify where the best opportunities lie. By using enterprise analytics these opportunities can easily be revealed.
Once the product and target demographic have been identified, it becomes easy to define the capabilities required to transform in order to achieve that objective. In this sense, processes and technology both align to the capabilities, enabling improved business process management, training design and overall transformation implementation within an organization. This in turn, leads to rapid business transformation.
Chapter Five: The Importance of Performance Management
Transformation! 