The performances & activities of all businesses are affected significantly due to various aspects. These are competitive pressure, globalization continuous innovation & digital revolution. Thus, it becomes essential for companies to seek constant business transformation to overcome competition. Each transformation is said to be determined by the content, context, participants, process & the effects.
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Know the five major business transformation types
Such transformation is crucial for any business to survive & succeed in the ever-increasing competitive world. It takes place within the organization, disrupts cultural norms, impacts operational modes of the management & modifies business processes. It also helps to avail benefits by implementing the latest technologies & automation in the business.
1. Management transformation:
For the management, the benchmark set is excellent responsiveness, discipline & effective control. Companies must adapt to the ever-changing complex environmental & societal changes. Internal relations & hierarchy rules are changing. Management methods & functions are re-evaluated, middlemen are reduced, managers are now taking leadership roles & promoting empowerment, collaboration & communication. They are also expected to identify & retain talents, be an inspiration to juniors & maintain as well as develop commitment. Adopting the ‘Lean approach’ will prove to be effective as it helps to develop strategies by taking valuable inputs from employees. This also allows them to express their mistakes fears, frustrations, and doubts and to set clear objectives.
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2. Organizational transformation:
It involves redesigning the structure, operational mode, and professional practices of the organization. Thus, it helps to increase overall efficiency. It is an evolving & continuous process with more focus being given to the employees. To ensure success, they need to be committed & supportive.
3. IT (Information Systems) Transformation:
For effective business transformation, IT transformation is considered to be the core feature and also the main growth driver. It causes a significant impact on different management resources like people, processes & technologies. It also includes an explosion in available data storage capacity & data. Such changes have brought about the emergence of new services including rapid design, distribution & development. Balancing the value proposition of the company with that of the available resources for quick achievement is a major challenge. This needs to be undertaken without risking management priorities. Companies adopting the IT transformation process can differentiate itself using different applications. It also includes information sharing, data sharing, process security & digitalization of services. Also is offered key distribution channel like web services, multi-channel & e-commerce.
4. Cultural transformation:
It involves implementing significant changes in behavior, organizing & thinking patterns. Changing corporate culture means changing collective & individual mental state, combine sustainable performance with freedom & achieve overall well-being. But implementing this change process may take some time and will achieve success only after adopting managerial transformation. It should also be driven by proper values & vision. Hence, the cooperation, confrontation, action & reaction involved are likely to cause organizational restructuring. This in turn will enhance values, meaning, increased scope & accountability instead of following hierarchical task lists.
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5. Business process transformation:
It signifies a shift to a business-oriented transversal vision from a function-oriented vertical vision. With the promotion of automation, it secures a wide range of low added value, repetitive tasks. For this purpose, relevant tools are used allowing the business to focus on increasing competitiveness & overall productivity. This process when implemented correctly can speed up ROU & save on precious energy & time. It also saves on valuable resources & streamlines effective actions. However, it is crucial to choose the very best available options about the implementation plans, technology & business model. This will help support company strategy & business process transformation.
Therefore, by adopting the right business transformation procedures, it is possible to strengthen organizational competitiveness & ensure success.