What is Business Transformation?

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Business transformation refers to fundamental changes in techniques, processes and technologies that are not used at the maximum capacity of a business. These transformations help companies increase their competitiveness, be more efficient, increase customer satisfaction and reduce operating costs.

Businesses undertake business transformations to create more value. It is used to unlock the potential of employees, to take advantage of new ideas and technology, and to become more efficient by maximizing the company’s potential.

In short, the goal of every business transformation is to ensure that processes and systems are effectively implemented within a company. It used to take a lot of time to implement business transformations in the past years. Today, with technology, it can be completed within months.

What are the Types of Business Conversion?

Business transformation is a broad and comprehensive term. For this reason, business transformation activities can take many forms and dimensions. Generally, there are 5 basic types aimed at improving the performance of a business.

1. Business Process Transformation

Business process transformation focuses on how things should be done. It includes multiple optimization and iterative processes to focus on higher value projects. The primary goal here is to innovate in the company and bring higher value services and offerings to the market.

2. Digital Transformation

Digital transformation involves leveraging technology both to create and distribute data faster and to deliver new products and services. Therefore, it requires a company to rethink its business model with a digital and strategic mind.

3. Corporate Transformation

Corporate transformation aims to restructure a company’s workforce for greater success and greater growth. Therefore, it creates a culture that will enable you to examine current methods to identify the right people for a position and to maximize the strategic goals of the business by creating a map for future business operations.

4. Management Transformation

Management transformation is the basic idea of transforming the way managers work and make decisions within an organization. While businesses strive to increase competition in their market, the hierarchy within the company is an obstacle to facilitating quick decision-making and reacting to new developments. It is much more important to transform the management structure so that employees can make their own decisions and collaborate quickly. To implement this transformation, facilitating access to information, establishing open communication channels and providing transparency in business processes are some of the steps to be taken.

5. Cultural Transformation

Cultural transformation refers to the change in the common attitudes, beliefs, processes and behaviors of an enterprise. Cultural transformation often requires a radical change in behavior. However, cultural transformation takes much longer than other types of transformation. Because it is much more difficult to transform a new culture into action and practice. Although it takes a long time to realize the cultural transformation, we must state that it has a very high success rate.

How Is Business Transformation Implemented?

It is critical for businesses to focus on business capabilities that have a direct impact on successful business transformation. Focusing on these capabilities can help the company achieve greater value and achieve its goal of business transformation.

These basic abilities are as listed below;

Mission

The mission is derived from the company’s strategy and focuses on the purpose of a talent, how it will be deployed, and what value it will provide.

Analyzes

It enables to compile data, communicate, make informed and timely decisions.

Integration

It includes rules, roles, and decision-making responsibility that facilitate integration between capabilities, partnerships, and functions.

Processes

It encompasses a set of processes designed, integrated and efficient to achieve targeted results.

Technology

It requires having the necessary software, hardware and tools to develop the skill.

Talent

Competencies, talent infrastructure, skills, and workforce planning provide the base for talent execution. This allows the business to achieve its goal while offering a broader perspective.