What is Business Transformation - Importance, Types & Best Practices
Written By : Bakkah
Table of Content
Your company's strategic decisions greatly affect how you operate, where you grow, and what kind of performance improvements you can expect. By reimagining your business model, your organization can grow in new directions.
Hence, Business Transformation can determine how this path goes. But first, we need to define the term.
What Is Business Transformation
The business transformation term includes all processes undertaken to adapt to the market shifts such as operational, financial, cultural, technological, and digital transformations.
It also aims to improve customer satisfaction and reduce costs in addition to generating new value.
To adapt to changing market conditions, an organization may change the way it works or its overall operations, such as transforming a department or product line.
What is the effect of Business Transformation Factors
Demonstrated below are the key factors affecting BT processes:
- Transformational Changes: These can occur in a business due to a competitor's actions.
- Technological Advancement: Businesses strive to stay current with technological advancements while an organization's technology systems may need to be redesigned to cope with the market changes.
- International Expansion of Businesses: With the development of technology, businesses tend to expand in new ventures.
- Multiple Production Methods and Materials: Most businesses aim at making their products to maintain a continuously innovative environment.