Posted on: Jul 26, 2023
In today’s fast-paced world, companies must be ready to adapt to changing environment. In aim to fulfil enterprise’s long-term vision, it is critical to realize strategic goals that can be supported by the business transformation process.
What is business transformation?
The business transformation process is a continuous, long-term way of achieving competitive advantage by increasing revenue or market share, improving customer satisfaction, and cutting costs. It may include altering processes, people, systems, and technology.
How do you implement business transformation process?
In aim to successfully implement the business transformation process and achieve quantified results, a key is to properly identify and address issues, create achievable plan and properly manage the transformation. It can be achieved through:
- Review and understand the company’s market environment, strategy, business needs and objectives,
- Identify current needs, issues and opportunities in terms of operating model, technology & systems, process design and control & compliance. It can be done by assessing the maturity of each factor.
- Reshape strategy and design a governance model/structure on organisation and process,
- Define areas for the change with desired business impact,
- Align key transformation milestones and explore financials,
- Create a coherent transformation roadmap and gain stakeholders’ buy-in,
- Prepare risk mitigation plans towards business services model,
- Execute the transformation program.
What is driving the demand for business process transformation?
There can be a wide range of reasons for company to perform business process transformation. Dynamic business environment, high competition and rapid technological developments impact on all aspects of business functioning creating a extensive number of opportunities. Overall, the demand for business process transformation is driven by a number of factors, including:
- Disruptive technology – It lets on taking advantage of the ubiquitous emerging technology such as robotic process automation, artificial intelligence, data analytics, chat bots, cloud computing, platform tools and innovative services.
- Compliance and regulatory changes – Organizations have to transform in aim to adapt to new legal requirements and standards.
- Globalization – The process of globalization enforces cooperation on both local and global markets. In aim to create competitive advantage companies must transform process and organization’s structure.
- Efficiency and cost reduction – By streamlining procedures, getting rid of redundancies, and automating repetitive tasks, business process transformation can result in significant cost savings. Businesses can invest in growth initiatives and allocate resources more wisely when operational efficiency is higher.
- Customer satisfaction – Behaviour of clients changes within in time. In aim to fulfill their expectations organizations must run innovative initiatives.
- Employees’ satisfaction – Key asset of all companies are own employees. In aim to achieve full potential organizations must ensure that workers have proper tools.
- Acquisitions, market expansions, and business growth – For business development, acquisitions, it is important to harmonize and standardize processes, which can be achieved through transformational projects.