Are you considering ways in which a business transformation will secure your company for the future? In this blog article, I discuss the five benefits of a business transformation and take a look at the potential challenges. One thing is clear: a big change, needs clear goals, plans and a well-documented implementation to succeed. Read more about the benefits and challenges of a business transformation here.
The starting point
All companies go through transformation processes over time – operational, cultural and digital. The saying “If you don’t move with the times, you move with the times” hits the nail on the head. It’s no longer a secret that companies need to keep up with changing markets. Customers’ needs are changing, competitors are embracing new technologies and offerings … the world is changing at breakneck speed.
In most cases, small adjustments are not enough to keep up, or keep up with the competition. Only a comprehensive company transformation and reorientation leads to the desired success. This is true for small and medium-sized companies, as well as for the most successful global enterprises. A business transformation, as simple as it may sound at first glance, involves many different levels. It takes months to years – depending on the initial situation and the company’s goals. In principle, it changes the business model and the company organization. The decisive factors can be a change in the company’s orientation, company takeovers or mergers. In all cases, it goes through the following four phases.
The four phases of business transformation at a glance
1. change in self-image: the company’s vision and its own capabilities are re-examined and re-defined.
2. restructuring & reskilling: using new resources and functions, a company remains competitive and lays the foundation for a successful future.
3. revitalization: the focus of the reorganized company is now on generating growth and using the new resources for this purpose.
4. renewal: the entire company is transformed. Employees acquire new skills and are strongly integrated into the transformation process. They are motivated to support the new procedures and ideas, and the company can set out on the road to success.
New technologies and means, such as artificial intelligence, increase efficiency. Which makes it possible to work faster and more resource-efficiently. Nowadays, many things can be replaced by intelligent machines. This leaves more time for tasks that need to be done by people. Smart companies take advantage of all the possibilities and gain an edge over the competition.
Analyzing data and processes becomes easier with the use of digital technologies. It is easier to predict and manage the amount of material needed. As a result, significantly fewer resources are wasted and profits increase markedly.
Return on investment (ROI)
As efficiency and productivity increase through business transformation, this leads to a better return on investment. Many companies are afraid to invest large sums of money in new systems. However, in the long run, it pays off, and a company’s profit is even more clearly reflected in the capital it invests.
Sustainability and environmental protection
One point that should not be underestimated is sustainability. Through intelligent energy management systems, companies enhance their image and contribute to environmental protection.
This is where the big advantages of AI come into play. Tasks that are dangerous for employees can be taken over by artificial intelligence. This way, you protect your workforce and can ensure more safety at work. Companies that take care of their employees and their well-being will be recognized.
The three considerable challenges of a business transformation
Where there is light, there is also shadow. Every business transformation brings with it requirements and obstacles that must be overcome.
If the goals are not clearly defined, one will fail to achieve them. A transformation requires extensive preparation and regular review of progress. Crucial to this is the corporate vision. In the event of a major change, the vision must also be reviewed and adjusted. Where do you see your company in 5, 10 or 20 years? What do you need to do today, one year from now, two years from now, or five years from now to achieve that goal? Prepare meticulously for business transformation. This will lay the foundation for future success.
Rejection by employees
A business transformation will only succeed if employees are involved in every change. They are the ones who have to deal with the new tools, technologies and changes daily. Every renewal requires a certain period of acclimatization and familiarization, which should be considered. You should also make your employees feel that they are an important part of the business transformation. Allow new ideas, be open to questions and suggestions. This way, employees don’t feel like they are just following instructions. They help shape the transformation and are involved in the process. This motivates them and thus strengthens your entire company.
Integration of new technologies and resources
Transitioning between legacy tools and practices to new technologies and resources can be challenging. However, a smooth transition is essential if you want to return your focus to revenue generation as quickly as possible. Continuous adaptation is more effective than redesigning everything at once. This allows your employees to familiarize themselves with new tools and slowly adopt the change.
Business transformation is a matter of time
Every company will have to transform in due time. The market is changing. Customers demand new services, products and offerings. And competition is increasing. However, this should not worry you. On the contrary. It’s a great opportunity for growth and new possibilities. Recent years have shown how quickly companies need to change and adapt. Therefore, stay on the ball. Keep your eyes open for new directions and opportunities. The future of your business depends heavily on your response to changes in the market. It’s not too late for your company to evolve. Take it in hand and start into a successful future. I would be happy to accompany and advise you on this path. I look forward to your inquiry via contact form.