Key Drivers of Business Transformation Today
Business transformation is widely considered to be a change management strategy. It is defined as any shift, realignment or fundamental change in business operations. Earlier, Anand Jayapalan mentioned that the aim of business transformation is usually to make changes to processes and systems to better align their venture with its strategy and vision. Business transformation commonly involves changes to the whole organization, such as integrating the two companies involved in a merger or acquisition. It can include a change to a specific function, like IT, HR or Finance.
There are multiple reasons due to which a business may consider a transformation, like low profit and turnover, brand new technologies, shifts within the market, or even a merger and acquisition. More often than not, business transformation is in response to change. In the contemporary landscape, change is a constant. Disruptive technologies and competitive market conditions are steadily revolutionizing employee and consumer expectations. The ability to seamlessly adapt to change is vital for businesses wanting to ensure a competitive advantage. In fact, businesses should try to be as agile as possible to make the transformation process smoother.
The top drivers of business transformation include:
Technology change: Businesses explore ways to make use of brand new opportunities and improve their operations, as technology advances with time. They can move to a cloud-based system, automate certain processes, and so on.
Drive efficiency: If the objectives and goals of a company are not being met, they can get triggered to adapt to more efficient ways of working. This might involve removing duplicate activities and assessing processes, or even changing organizational structure or teams.
Cost reduction: High expenses or a need for improved cost-savings can trigger a change within a company to lower outgoings, no matter whether it is in certain areas or across the business.
Lack of business growth: The current operations of a certain company may not provide it with the time and resources to put emphasis on business growth and innovation. Such a situation may indicate that it is time for a transformation.
Merger or acquisition: The situation can become exceedingly complex if different approaches and cultures come together. Many types of activities and assets have to be merged, for example, with finance functions, IT systems, as well as sales and marketing.
New business leadership: A brand new leadership team might want to make changes to the current business, to implement a new strategy, match their preferred ways of working or even the goal they want the business to focus on.
Low customer satisfaction: If the current customers of a business are not happy or if its retention rates are low, an organization might explore ways to adapt its business in a manner to better serve the target audience.
Increasing customer expectations: The need for business transformation can be driven by a need to meet increasing customer expectations for improved customization or responsiveness.
Previously, Anand Jayapalan mentioned that business transformation is an ongoing process. Therefore, companies have to continually reassess and adapt to evolving market dynamics in order to succeed. This whole process can be challenging, but it may also position a business for long-term success if executed in an efficient manner.