Often business are so focused on running day to day operations they get caught flat footed when the market changes. A truly successful business predicts change based on gathered data and makes data-driven decisions to meet those conditions. However, to create change an organization requires the right tools, technology, and talent. Let’s take a look at what is needed to succeed.
What is business transformation?
It is the opportunity to rethink your business and operating models to deliver breakthrough value. It involves strategic decisions that affect where you’ll grow, how your organization operates, and what kinds of performance improvements you can expect.
Why do you need to transform?
Effectively transforming your business enables your business to survive and thrive when new innovation-driven opportunities arrive, you respond to changing market conditions and regulatory changes. The rapid pace of today’s transformation requires caution. A high level of integration and alignment is required to succeed.
What used to take up to five years now must take place in sometimes less than one. With the deluge of data at your disposal, accelerated timeframes, and data-driven decisions that need to be made, the risk of failure is great. The companies that succeed are those which create bold objectives and put in place systems and process to achieve them.
Define your strategy
Leaders who succeed in transforming their businesses have a well-defined, articulated strategy, communicate their goals in a realistic form, and create an agile plan of execution for their organization. The knowledge of how they will create, deliver, and capture value lies at the heart of their ambition. This knowledge enables them to adjust their strategy based on the capabilities of their organization. Providing the tools to exercise these abilities is a key to their success.
Define your capabilities
What do you need to improve and how do you do it to achieve your planned transformation?
Identifying the specific capabilities needed to transform is a critical aspect of responding to changing conditions. Often only a small number of capabilities need adjustment, sometimes many. They can be determined by the market data you capture through your technology infrastructure; this data will point to the capabilities that deliver greater value and drive advantage.
It is easy to focus on the people, process, and technology capabilities but there is a need to look beyond that to establish a more complete picture. You should look at several dimensions to establish your true capabilities. From there, you can begin your transformation.
What to look at:
- Mission
- Insight
- Integration
- Processes
- Technology
- Talent
Adaptability and agility
Another key to transformation is the ability to remain adaptable to evolving technological, business, and regulatory conditions. Changes in markets, resource availability, staffing, regulations, marketing and distribution channels need to be identified as they occur.
Agility applies not just to the technological tools used but the mindset of the individuals who use them.
Invest in the talent you need outside your organization
Leaders in business transformation may not always have all the tools and talent they require. The process can be complex and time consuming. A strong transformation leader must have the influence, experience, and credibility to guarantee the buy in of all the stakeholders of an organization, including freelancers, vendors, agencies and other outside resources.
Often an outside consultant must be brought in to analyze your needs and create a strategy for change and oversee your transformation process. Third parties have the great advantage of an unbiased view into your business. They also have the ability to connect with peers, partners, and thought leaders to challenge your and their thinking. Lastly, there are no political or interdepartmental rivalries involved. They rely strictly on the numbers to create data-driven business decisions to create, deliver and capture value.