Source: Wikipedia
Business transformation is about making fundamental changes in how business is conducted in order to help cope with a shift in market environment.
When business transformation is used
The need for business transformation may be caused by external changes in the market such as an organisation's products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense. This management approach is widely used:
to increase revenue or market share
to improve customer satisfaction
to cut costs
Components
Business transformation is achieved by realigning the way staff work, how the organisation is structured and how technology is used. Typically organisations go through several stages in transforming themselves:
recognising the need to change and gaining consensus amongst stakeholders that dramatic change is necessary
agreeing what form the change should take, the objectives of the change and a vision that describes a better future
understanding what the organisation is changing from and what needs to change in detail
designing the new organisational way of working and its support and management
testing and implementing changes, usually in waves, typically over a number of years
bedding in the change so that the organisation cannot move back to how it was and achieves the intended benefits
Transformation examples
Examples of organisational transformation include:
General Motors transformation and restructuring
BBC's Delivering Quality First programme
British Airways strategic transformation programme in response to low cost airlines
