What is business transformation?
The term business transformation is used a lot. But what does it really mean for your business? In a broad sense, business transformation relates to change - how well a business can adapt and respond to the changing environment to ensure its continued prosperity.
The business transformation process can be either pro-active, meaning that you seek out change in order to improve business performance – for example implementing a new growth strategy; or it can be reactive, where you need to change in response to an external factor that's impacting upon your business – for example a new regulatory or compliance requirement.
There are different types of business transformation depending on what's driving the change. Three typical examples of situations where business transformation occurs include:
- Re-thinking your business strategy – which involves re-examining your core business offering and/or the direction you want the whole of your business to take e.g. Netflix expanding from mail delivered DVD rentals to also offering digitally streamed TV shows and movies. Here, you'd ask questions such as: What is our core business? What direction do we want the business to take? Where are our opportunities for growth?
- Developing and/or refining your business model – where your business is still offering the same product or service, but looks to deliver it in a different way or strengthen its current service delivery methods to remain competitive. Here you'd ask questions such as: Who is our target market? What are the characteristics of our ideal clients? What is the best way to deliver our products/services to our intended target market? How can we capitalise on the growth opportunities available to us? Do we need to take a different approach? What is our profit model? How will we calculate ROI?
- Reviewing your operational processes – where you examine how your business currently delivers its product or service with a view to improving efficiencies. Here you'd ask questions such as: Do we need to make any changes to our internal processes, systems or resources in order to deliver our product/service more efficiently? Do we understand the business' key performance indicators and other relevant analytics to track how we're performing?
Aspen Corporate's advisors have a wealth of experience assisting businesses of all sizes, across many different industries, with the transformation process.
Our Business Transformation Philosophy
The exact business transformation process differs from business to business, but our business transformation philosophy involves:
- An evaluation of your current position
- Setting objectives - SMART
- Developing strategies to resolve any issues and achieve the set objectives
- Implementing these strategies to get your business to its desired position
- Engaging in continual review to refine and adjust things as necessary along the way