Business transformation is an umbrella term that implies to certain fundamental changes made in the manner in which a business runs and operates. These changes can be associated with business personnel, processes, and technology. Earlier, Anand Jayapalan had spoken about how business transformations help companies to become more efficient and deliver improved results.
There are many important elements that are often the prime driving factors behind a company’s transformation. These elements may include:
- Company mission: The mission of a company influences both the culture of the organization, and how the business owner defines and produces value for the customers. If they feel that the customers are no longer responding well to the services or products of the company, then this might be due to some kind of misalignment between the business mission, culture, and audience. Hence, the company might have to undergo a cultural transformation to ensure that its mission aligns with customer concerns.
- Costs: In many instances, cost changes can be a driving force behind transformation, or be the result of it. If the revenue and profits of company are going down, or having problems competing with other companies that provide a lower price for similar products or services, it might be time to consider a transformation. The management team of a company should evaluate the cost of manufacturing goods, make internal process improvements, or/and try to work with different vendors.
- Innovative technologies: Trying to embrace innovative and new technologies is a vital aspect of successful digital transformation, but can even be a vital part of other transformative processes as well. Trying to tap into the power of new technologies can put a business in a better position to optimize internal processes, improve customer communications, and more. Being open to new digital technologies can also help businesses to build their reputation as a market leader, and improve the rate at which the customers adopt their products and services.
- Customer expectations: If the customers are not satisfied with the value they are getting from a business, it can be an indication that business transformation is necessary. Customer driven transformation ideally goes hand-in-hand with other drivers including the tech stack available to the company and the key business goals. The goals and objectives of a company are important aspects of how the business communicates value to the customers. On the other hand, new technologies help businesses to better measure customer satisfaction going forward.
- Market disruptors: If a market experiences abrupt but significant change, such as the development of digital tools that change customer expectations or the entry of a new business competitor, it may drive a business towards transformation. Business owners and management teams must keep an eye on the developments within their industry at all times, to be ready to pivot and transform if a major disruption takes place.
Previously, Anand Jayapalan had pointed out that business owners are likely to find a mix of the drivers mentioned above influencing their transformation project. Business transformation projects often lead to bold, seismic shifts in an organization, and help in accelerating change and growth beyond typical incremental advancements.
