Thursday, June 29, 2023

Important Aspects Of Business Transformation



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.


Author: verified_user