Reasons of failure

The three critical success factors in any organization are people, processes and technology. Business transformation aligns these three factors closely with the new environment for business growth in short term and long term horizon. This article explains what is Business Transformation.
Business transformation is not (or does not have to be):

• outsourcing
• downsizing
• change re-labelled
• expensive
• only managed by consultancy firms
• limited to IT projects 

Reasons of failure of Business Transformation projects 

More than 70% of transformation programs fail to deliver their actual targets.1 The major reasons are 

• Unclear view and misunderstanding of the business’s vision
• Vague understanding of the organizational structure
• Trying to apply the same transformation solutions to diverse business needs
• Simply reorganizing organizational resources rather than achieving true transformation
• Failure to understand existing process flows and their objectives
• Failure to prioritize the factors that need to be transformed
• Overestimating the goals of transformation in the excitement of making change
• Communication problems
• Failure to observe the necessary management discipline in different departments
• Failure to set specific, measurable, attainable, realistic, and timely (SMART) goals for transformation 

Economist Intelligence Unit’s Managing change successfully survey , which was conducted in March 2008 clearly states that money is not the problem for Business transformation, but clear Business Transformation Strategy and it’s execution is the problem. 

References

1. www.microagility.com/docs/bt.pdf
2. ‘A change for the better Steps for successful business transformation’ A report from the Economist Intelligence Unit

Why Business Transformation

Business transformation does not mean fine tuning in few areas, but radical changes in business strategies and policies. Reinvention of the entire business policy is the central idea of Business Transformation. It implies holistic process of transforming the business. This will help the organizations to succeed and not die away due to stagnation.
Business transformation is not just important, but it is vital for any organization to succeed in today’s environment. The world’s economic conditions forcing businesses to either reinvent themselves or die away soon.
“It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change.” (Clarence Darrow)
Many companies that fail focus on the outward manipulation of markets and customers driven from the “ego” of the organization. Unfortunately for them, today’s markets are sensitive to purposeless wealth creation.
Business Transformation can bring

• Radically improved products and services
• Increased revenues
• Reduced costs

References

1. www.microagility.com/docs/bt.pdf
2. ‘A change for the better Steps for successful business transformation’ A report from the Economist Intelligence Unit

Introduction to Business Transformation

As stated earlier, Business transformation is not just reorientation of a few parameters of your business. Only those organizations that can re-invent themselves every five years will survive in the modern business world. Therefore redefine your business with the latest techniques of Business Transformation and realign your people, processes and technology is the prime necessity of this age.
“Business Transformation is a fundamental change of the relationships between a company to everyone and the community. In other words, companies have to redefine all there relationships.“     (Gouillart and Kelly, 1995)
Transformation is the only formula that enables business to achieve success, find Key Process Indices relevant to the changed business environment & way to achieve the same. By using systematic methodology you can not only see the future challenges to your business, but also the tactics to face the challenges.
Transformation relies on implementation of effective market and stay-in-business strategies that attract more profitable customers in selected markets and lower operating costs.
Business owners are always sensitive to two factors

1. Staying in Business
2. Remaining profitable 

In extreme environment like the current business climate, businesses have to struggle to meet the requirements. The only solution is to understand the need to transform at right time, adopt suitable strategy for the business transformation process & implement the strategy.