Business transformation implies to the process of making
major changes to diverse aspects of the operations and structures of a company.
Earlier, Anand
Jayapalan had spoken about how these changes are
usually undertaken with the aim of making a significant improvement in the
performance, competitiveness, and value creation of a company. It often
involves reevaluating and rethinking the fundamental aspects of how a business
operates and functions.
Here are the prime aspects of business
transformation:
- Vision and
strategy: For any company, having clarity on the strategy and vision of
the business is extremely important. It is a vital input to any
transformation journey. In most cases, the C-Suite leaders of a company
define their goals and objectives for their respective line of business
ultimately roll up and formulate the vision for the organization. It is
not always sufficient to have just a vision. The vision must always be
substantiated with a strategy that can help realize the vision in a timely
manner. The vision and strategy of a
company would guide the next stage of business transformation, which
focuses on the business model.
- Business model:
The business model involves the processes within a company that
facilitates commercial opportunities. The business model acts as a
foundation for the target operating model (TOM). This TOM additionally
describes how a company shall operationalize the business model with the
goal of fulfilling discerning commercial opportunities and generating
value for the customers. The TOM is immensely important to gaining a
better understanding of the interdependencies across the lines of
businesses, and knowing how they interact with one another. In most cases,
TOM is underlined by the business capability model or map. The business
capability model simply is a high-level view of the business capabilities
with the lines of businesses operating in an organization.
- Enabling
technology: The next step in the transformation journey involves starting
to define the technology that shall support the targeted operating model.
Ideally, an IT organization drives this function by keeping in mind the
current business requirements, as well as concerns of the future. These
technology decisions are usually guided by important industry trends,
value to the business, ongoing support costs, and cost of ownership
- Value
management: The deployment of technology supports the digitalization of
multiple processes that are laid down within the TOM. The KPIs and value
drivers identified during the Vision and Strategy stage would be tracked
and monitored at this phase. As a part of value management, organizations
strive to find improvement opportunities whether it is in the form of
re-imagining the business processes or adoption of the latest industry
trends.
While the above mentioned points are some of the core
aspects of business transformation there also are certain additional parameters
that make a transformation successful. Earlier, Anand
Jayapalan spoke about how other additional
considerations include the ability of businesses to respond to changes with
agility, as well as robust management of risks during the transformation
journey. Business transformation ideally goes beyond incremental changes or
routine improvements. It tends to involve a comprehensive approach that
encompasses multiple dimensions of the organization.
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