BUSINESS TRANSFORMATION – drivers for change
Business transformation projects tend to be driven by a burning issue that will have a significant impact on the future of the business. The transformation will involve making fundamental changes in how the business is conducted, in order to help it to cope with shifts in the market environment.
Below, we illustrate some typical drivers for change, and the benefits a business might potentially derive from transformation.
Your business may be facing the following or different challenges.
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Driver for change
Business model / organisational structure
Business benefit
Moving to a new business model such as decommissioning multiple services to create a single service. I.e., Central Government policy (codes of practice) require disbanding multiple services to create a new service.
Type of transformation
Radical
Outcome
Improve profits / market share.
Reduce costs.
Driver for change
Industry
Business benefit
A dramatic shift in business model that involves entering new indutries; i.e., IBM moving from computer manufacturer to digital systems supplier
Type of transformation
Radical
Outcome
Improve profits / market share.
Driver for change
Cost
Business benefit
Restructuring your costs, such as cutting overheads or achieving a fundamentally lower cost per unit.
Type of transformation
Incremental
Outcome
Reduce costs.
Driver for change
Organisational culture
Business benefit
Changes to the norms, habits and expectations of an organisation. For example, an organisation with an antagonistic relationship with customers may seek to fundamentally shift towards “the customer is always right” or a similar culture, by introducing a customer satisfaction programme.
Type of transformation
Radical
Outcome
Customer satisfaction.
Driver for change
Operations
Business benefit
Rethinking core business processes, as opposed to improving them; i.e., a manufacturing company introducing robotics and AI into all of its manufacturing processes.
Type of transformation
Modular
Outcome
Reduce costs.
Driver for change
Distribution
Business benefit
Changing the distribution model, such as a manufacturer that begins to sell to customers directly using ecommerce channels; i.e., a wholesale manufacturer (B2B) moving to direct selling online (B2C).
Type of transformation
Modular
Outcome
Improve profits / market share.
Driver for change
Quality
Business benefit
Poor quality is a fundamental problem; i.e., making a product or service more efficient and effective, and the impact on improving customer satisfaction.
Type of transformation
Architectural
Outcome
Customer satisfaction.
Driver for change
Technology
Business benefit
Dramatic shifts in technology platforms such as aggressive modernisation and retiring legacy systems. I.e., improving the way technologies are used in business, like moving to cloud-based services.
Type of transformation
Architectural
Outcome
Improve profits / market share.
Reduce costs.
Driver for change
Scope
Business benefit
Expanding or contracting product range. I.e., a major supermarket chain that begins to operate small convenience stores.
Type of transformation
Incremental
Outcome
Improve profits / market share.
Driver for change
Risk
Business benefit
Managing risks that threaten the reputation of a business, such as information security risks and associated financial risks. I.e., reducing the impact of cyber crime.
Type of transformation
Architectural
Outcome
Customer satisfaction.
Reduce costs.
“The people who’ll win in the future will be those who can join business processes and technologies together in different ways to create new solutions to emerging problems.”
I write to say a big thank you to all of you for such a successful AGM. Everyone appreciated your hard work and above all the professional way in which it was organised. It was clear from the audience that your presentation Steve was well received and judging from the comments from the floor endorsed that such a presentation as long overdue.
Thank you Steve, you made the process enjoyable and easy to understand. I very much enjoyed helping out with this.
Just a quick note to say a huge thanks, have just done the quarterly monitoring report and monitoring data report. What a doddle this time!!!!! You’ve managed to make the database idiot proof! Tasha and myself well happy.
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