Business transformation changes the entire corporate structure. But what exactly is meant by this and how.
Every few weeks, the IT industry drives a new pig through the village, but it is a really fat pig with a lot on its bones. Business transformation is one of the most colourful terms that the industry has ever offered: it sounds important and is weighty. But what is meant by this in detail remains unclear. Only one thing is certain: business transformation offers companies a huge opportunity to become more efficient, flexible and successful.
The Business Transformation Includes Employees, Processes And IT Infrastructure
Business transformation, there is broad consensus, equally affects employees, processes and the IT infrastructure as the basis of transformation. In a business transformation, all company relationships to individuals and its economic and social environment are redefined. But that also means that everyone involved has to be actively involved so that the business transformation becomes a success. It is not a top-down design that is hatched in secret.
Many experts understand business transformation primarily as a methodology for eliminating deficits, such as unprofitable workarounds in business processes, and trimming the company for efficiency. Speed is an essential success factor in today’s economic life, and cumbersome, lengthy processes hinder performance. With the consequence: those who arrive late are punished by life, and those who act too slowly in business life will run away from customers. To avoid this, it is necessary to put everything, really everything, to the test to identify and eliminate the weak points in your processes. Even small changes such as the rapid incorporation of new compliance requirements can mean a significant competitive advantage.
Break Up Rigid Silo Structures With Business Transformation
Efficiency and agility are only one side of the coin, and business transformation is much more than that. It helps break up silos and rigid departments and create an organization that dynamically adapts to the markets and reacts to market opportunities faster than the competition aligns with customers and reinvents itself every day.
Behind this is a company’s vision that integrates feedback from customers, suppliers, and partners in real-time into its decision-making processes, along the entire value chain. In a dynamic, digitized value chain, all influencing factors control each other.
Business Transformation: Value Creation As A Dynamic Navigation System
Eliminating performance and efficiency brakes is only the first step. Well-functioning processes, networking, quick responsiveness and a comprehensive coupling of real-time data and processes are the components for a business-transformed company that masters the future challenges with ease and is the famous nose-length ahead of the competition. To do this, companies have to leave their usual paths and view processes as an open network. You have to say goodbye to the familiar that will no longer work properly in the future.
If the classic added value is similar to a map on which companies follow a path, then the modern added value is a dynamic navigation system. Such a value creation radar enables companies to realign themselves quickly and react appropriately to both obstacles and market opportunities. One thing must be clear: Business transformation is not a project but a long process. Only when companies have internalized this and made it part of their DNA are they ready to make the most of opportunities and dynamically redefine their added value over and over again.
Also Read: AI In Companies: Only As Good As Its Data
