The word transformation is used very commonly to describe changing business processes and trends. In an era of unprecedented disruption and market upheaval, transformation focuses on the need to generate new value. Transformation, therefore, unlocks new opportunities, to enhance business growth and enable new efficiencies.
Transformation needs you to think big
In embracing business transformation, you need to rethink how your organization creates value. To achieve business transformation, you need to think big. This is because your organization needs to sustain growth in the face of constant disruption.
To grow in today’s disrupted business environment, your organization must be agile. Effective business transformation means your organization can survive and thrive as you pursue new innovation-driven business opportunities, and respond to evolving market demands.
The need for advanced integration capabilities
Transformation today occurs at high speed. To keep pace, your business needs an advanced level of integration that many organizations are not equipped to handle.
What is business transformation?
Business transformation is the opportunity to define a bold ambition that transcends incremental change. It is the opportunity to rethink your business and operating models to deliver value. Business transformation involves making strategic decisions that affect where you will grow, how your enterprise operates, and what sort of performance improvements you can expect.
Unlocking value through business transformation
There are helpful ways by which you can ensure that your business transformation delivers the value that you are seeking.
Start with a strategic ambition
Leaders in business transformation usually have a well-defined business strategy. However, if your organization’s business choices and strategies are not properly translated into implementation choices, it results in dilution of business value.
The main question business leaders face is: How do we ensure that transformation goals and objectives support the business strategy?
An organization that has a well-articulated strategy can create, deliver and capture value from business transformation. Align your goals and activities to clearly define your desired transformation outcomes from a financial or operational perspective.
Identify capabilities that deliver value
While aiming towards business transformation, business leaders should analyze and identify specific organizational capabilities that will allow them to achieve a competitive advantage. Leaders must ponder over which capabilities they need to improve and how to improve them to successfully achieve transformation objectives.
Focus on critical capabilities that can help deliver more value, helps drive competitive advantages, and puts the organization on the path to business transformation. Prioritization is key to unlocking value through business transformation. It allows the enterprise to evolve rapidly to address immediate market opportunities.
Business leaders must move past a “people, process and technology” definition of capabilities; to one that offers a more holistic and complete picture. The definition of business capabilities is focused on six dimensions: mission, insights, integration, processes, technology, and talent.
Focus on gaining value through transformation
Business leaders identify at the outset the value they expect to achieve through business transformation. They carefully monitor, measure and track value throughout their transformation. Leaders must be clear in defining how they intend to create value. They must find ways to reinforce a focus on value throughout their transformation journey.
A failure to define the value expected from transformation can result in problems like backtracking to address issues that should have ideally been identified at the beginning. Ultimately, value defines the effectiveness of your transformation.
Agility and flexibility are critical to effective transformation
Organizations today must be prepared to evolve continuously through transformation. Business leaders should implement agility, innovation, and a disruptive mindset in every transformation process.
An agile approach to transformation can help deliver progressive value. An agile approach combined with agile solutions can give the business early revenue benefits. These profits can help fund the execution of transformation initiatives.
An agile approach can also enhance the ability of the organization to manage complexity and unpredictability through incremental developmental processes.
The last word
Without a clear vision and a strong strategy to shape the execution, business transformation cannot be successful. Business leaders need to anticipate and own disruption with a measure of agility and discipline that will help them stay ahead of their competition.