Business Transformation: Reinvent to Succeed
The three critical factors in any organization are people, process, and technology. Business Transformation more closely aligns these factors with radically changed business strategies and visions to meet long-term objectives i.e. the new products or services of an organization.
Transformation has proven to be a vital strategic element in companies’ policies. It does not involve merely fine tuning a few areas but requires radical changes in critical business factors. As reinvention of the entire business philosophy is the central idea, very profound consideration is given to reinvention that will lead organizations to succeed and not die away due to stagnation.
This paper defines Business Transformation, explains the benefits of a Business Transformation program and possible reasons for failure, and pitfalls to avoid. It presents a pragmatic and holistic approach for successful transformation.
What is Business Transformation?
The phrase Business Transformation has truly evolved with the emergence of the 21st century. It refers to making revolutionary changes to an organization’s setup to achieve desired objectives. Transformation has also been referred to as organizational reorientation.1 Transformation goals shape an organization into something “radically different.” It is a “…thinking discipline and not a process that depends on a cookbook approach.”2
More precisely, business transformation is a comprehensive process of reinvention rather than a mere reorientation. What was suggested by some authors in the past, that only those organizations that can re-invent themselves every five years will survive in the modern business world, has now become steadfast reality in modern times.
Reinvention requires a completely new set of rules and disciplines for the organization and even rephrases its vision and mission. Reorientation, on the other hand, is akin to rearranging the same old parts for better efficiency.
Therefore, reinvention, utilizing the latest techniques of transformation, aligns people, processes and technology to a new paradigm which delivers the most revolutionary solution for customers’ future needs/wants.
Transformation (n) – A marked change, as in appearance or character, usually for the better. The process or result of changing from one appearance, state, or phase to another.
In Business Transformation, it could therefore be said that transformational change is the process of changing from one ‘look’ to another, or from one culture to another. If visible change has not taken place (both inside and out), then the change is not transformational.
Transformation is the only formula that enables a business to achieve success and improve Key Performance Indicators, as demanded by the changing market. Suitably keeping and perfecting this formula over time allows a business to not only foresee coming challenges, but to face them. Consequently, the business’s market always remains positive, allowing the business to generate and retain a competitive edge over its competitors.
What are the major considerations that usually revolve around any transformation process? Studies suggest that business owners are always sensitive to two factors:
- Staying in business
- Remaining profitable
In extreme environments such as the current business climate, the first factor remains the most critical. Companies can choose less profitability but will always struggle to compete. Quitting is always awful and should never be an option. The solution is to understand the need to transform at the right time.
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