Throughout the business environment, the competitiveness is unpredictable than it was before with rising complexity and technological influence in all directions. The digital globalization makes business environment more complex while empowering new business opportunities, by offering transparent pricing and product policies and eliminating traditional competitive advantages as well as shortening the product life cycle.
Just think back ten years ago in Sri Lanka, how were businesses reaching end-users? How were end-users reaching businesses? Compare that how communication is passing over between the two parties then and now. Technology has provided the power in the customers’ hands literally with the Internet enabled smart phone and tablets. Specially note that these devices are always being improved such that the newest version offers more to the consumers, making the previous one obsolete in little period and even ignoring the fact that the monthly income what they get. Often a company’s management faces unending challenges, especially when technology influence over the consumer behavior.
Why You Need Business Transformation?
Business transformation is the profound change in strategy, business processes, systems, products, people, organization and culture, in response to changing business conditions either entire organization or specific business unit.
A 40 years-old business, second-generation owners who take over Dad’s business, met me to get the consultation as business which goes into decline year by year. Some competitors which adopt the technology faster than them and reach to the top while some of the straggling with ineffective investment in business, which leads to reduce profitability and make them questionable in the business.
Organizations need to evolve to address the changing business landscapes. The technology spending is driven by the need to meet business requirements. Business owners want a technological platform to be focused on business results, innovation, and continuous improvement. Business transformation may accelerate the business activities, processes, competencies and models to fully leverage the changes and new business opportunities, finally enhancing the shareholders’ value.
Ready for the Transformation
Business architecture is a major factor within an organization and most often the first-Phase architecture, I can say the Vision, Mission of your organization. The second phase would be supportive architecture for the first phase. Most of the entrepreneurs who like to change, always try on second phase transformation, but most of them could not end up with an expected result because of transformation should be directed from top to down. For instance, firms tried to change cash collection patterns, customer service, etc. will not provide tremendous impact to the business transformation which leads small change or sometime ends up with only expenses. Few entrepreneurs who believe that there is no change other than the babies’ nappy.
You have to determine what factors will impact on the business transformation associated with the migration from the Baseline to Target Architectures.
What do We Transform?
The Organizations, can survive only if maintain the synchronization with their external environment. This includes being responsive to the evolving needs and perceptions of customers, proper changes with technologies, understanding competition and the legal, social and political climates. Most organizations eventually die because fail to be responsive to environment changers.
There are two parts to strategy. A business strategy tells the organization where it is going and guides it like a ship’s rudder in a stormy sea. An Organization strategy, it includes the mission, vision of the future, values and guiding principles. A clear organizational strategy helps to transform a company from a normal workplace to one that inspires people and brings out their best.
Core Process are the flow of work through the organization. It is the repetitive of steps necessary to get a product out to deliver to the end-user. The processes also include the technological resources required to produce a deliverable. Understanding, streamlining, re arranging and properly supporting core business processes is the main component in business transformation.
The Structure says how people are organized around the core processes. It moves beyond organizational charts to understanding the boundaries, roles, responsibilities, delegation and reporting relationships among people in the organization. In transformation, the structure should fit the entire organization, for instance, core processes, strategy, etc. and helps rather than hinders performance.
Systems are the inter-related sets of tasks that help organize and coordinate work. Systems are usually standardized in the whole organization. Those are often “owned” by management or special support functions. The most effective systems are often the simplest and support smooth operation. Eg. Requiting, selection, training and development, etc.
Culture says how the organization really operates in business environment. It consists of the leadership style, attitude of employees and the management practices in the organization. Since most of the traditional cultures are obsolete in modern business environment, within the business transformation process, it is necessary to introduce new culture to match with the modern environment.
The Leaders leads the success. The traditional assumptions in leadership, its roles and practices of leadership are no longer adequate to manage in the modern business world. Successful leaders may change the entire processes of work, organizations and human to build collaborative, more productive result oriented organizations.
Future of Transformation
Make attention of the development in the technology, where LED TV is not so long ago was extremely expensive and impossible to afford by Sri Lankan Customers. Even 55 inches large-screen TV prices are significantly reduced. The prices kept falling in more or less, and new technologies promise even lower prices in the future than today.
I believe the real game changer is not only the technology. The customer experience also pays the significant role in business transformation. With customer expectations and technological innovation changing more rapidly than ever before, companies cannot make decisions on their product or service offerings alone. The differences are being able to deliver through brands that offer what is technologically possible and is at the cutting edge to match customer dreams.
It’s also not hard to think a time without printed newspapers when you get the morning newspaper by e mail. We are finally getting so close to the paperless and data full office without a hassle of morning traffic.
Dr. Himendra Balalle is an eminent Lecturer in marketing and a marketing consultant in a reputed conglomerate in Asia Pacific region.He is a Diplomat of Sri Lanka Institute of Marketing and holds the status of Certified Professional Marketer from the Asia Pacific Marketing Federation. He is a Business Management graduate of Durham University. He completed his Master of Business Management with Vinayak Missions University by specializing in Marketing. He also got his Doctorate from the University of Sheffield in marketing stream. He is even a member of Sri Lanka Institute of Marketing and Organization of Professional Association of Sri Lanka.