Common Types of Business Transformation

Business transformation can often be needed by a company in order to stay competitive in its industry. Earlier, Anand Jayapalan had discussed how the term business transformation largely describes fundamental changes in the way a company conducts its operations. Such transformations may have distinctive goals, like making operations more efficient or changing the entire strategy of a company.

Business transformations can be of varying types, including:

• Business process transformation: Business process transformation involves changing the manner in which a company carries out its everyday operations. It might indicate to the overhaul of the processes and procedures of a company. Usually, this transformation is implemented gradually, instead of just changing everything simultaneously. A process transformation can make sure that a company or even its specific department is up-to-date with the latest industry practices and standards, in order to stay competitive.
• Organizational transformation: Organizational transformation involves shifting how the employees of a company operate. Based on the goals and purpose of a business, organizational transformations may include changing the hierarchical structure of a company, hiring new employees, offering professional courses and workshops to improve the skills of the employees, as well as encouraging teamwork and collaboration between employees. In certain situations, it can even involve a complete restructuring of the organization, which includes hierarchies, processes and other elements of its organizational structure.
• Management transformation: Management transformation might be needed by a company as a response to discerning new market demands. Changes in company operations and communications can often lead to improved efficiency and decision making. Typically the goal of management transformation is to streamline particular operations by improving communication between employees and management. It also helps in improving operational efficiency by doing away with steps the employees complete for management to approve their decisions.
• Cultural transformation:  Company culture is the overall attitudes and behavior of the employees of a company. It can be observed in the interactions, attitudes, values and decision-making skills of company employees.  Changing the culture of a company implies to changing individual and collective attitudes. A top-down approach might be required to implement cultural transformation. Basically, the upper management of a company should adopt the transformation and serve as an example to the employees.
• Information systems transformation: The majority of companies depend on discerning technologies to help their operations. As technologies advance, it becomes vital for companies to stay current by updating the technology and how it is used by the employees. Information systems transformation can involve just about any technology used by a company, starting from its CRM and digital communication tools to its data storage methods.
• Business model transformation: The business model of a company essentially refers to the central plan created by a company with the aim of making profits. Business model transformation can include making changes in how certain business operations are conducted, company funds and used, and so on.

Earlier, Anand Jayapalan had spoken about how completing a business transformation of any type requires strategic planning and careful decision-making. Maintaining a systematic approach is vital to make sure that everything goes according to the plan, and the employees of the company experience minimal disruptions to the workflow.