Drivers of Business Transformation

There are a multitude of reasons an organization may choose to undergo a business transformation. More often than not, it is in response to change.

Today, change is a constant. Highly competitive market conditions and disruptive technologies are changing the face of traditional business models and revolutionizing employee and consumer expectations.

The ability to adapt with change is crucial for businesses wanting to ensure a competitive advantage. Businesses are therefore looking to become more agile so they can flex and adapt in response to constant change.

Professional researches shows, 94% of business leaders surveyed reported that being more agile is a priority for their organisation. Moreover, 82% said that leading and delivering step change in how the business is conducted is their highest priority.

The factors making transformation a priority today include:

• Technology change
  As technology advances, businesses are looking for ways to leverage new opportunities to improve their business, whether it's a move to a cloud-based system, or automating certain processes.
• Efficiency drive
  If an organisation's goals and objectives are not being met, they may be triggered to find more efficient ways of working. This may involve assessing processes and removing duplicate activities, a change to organisational structure or teams, or a digital transformation with the integration of new technology.
• Cost reduction
  High costs or a need for cost-savings may trigger a change within an organisation to reduce outgoings, whether in certain areas or across the business.
• Lack of business growth
  Current operations may not be allowing a company the time and resource to focus on innovation and growing the business, as was the case for General Motors.
• Merger or acquisition
  When organisations with different approaches and cultures come together, it's complex. Assets and activities need to be merged, for example, IT systems, finance functions, premises, sales and marketing.
• New business leadership
  A new leadership team might want to make changes to the current organisation, to match their preferred ways of working or implement a new strategy or goal they want the business to focus on.
• Low customer satisfaction
  If current customers are not happy and retention rates are low, an organisation may seek to identify ways to adapt their business so they are better able to meet customer needs.
• Rising customer expectations
  The need for business transformation may be driven by a need to meet increasing customer expectations; for responsiveness, speed or customisation, for instance.
• Political climate
  A change in political climate, for example, Brexit, or a new policy or regulation that impacts the business, may trigger a need for change within an organisation.