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 / access new markets.
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 / access new markets.

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 / access new markets.
Reduce costs.

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 / access new markets.

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 / access new markets.
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 / access new markets.

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 mesh technologies together to create new solutions to emerging problems.”

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