What is Business Transformation?

Business Transformation is the process of fundamentally changing systems, processes, people, and technology across a business or business unit to achieve efficiency, effectiveness, and measurable improvements. Transformation may occur as a result of external transformation (changes in the market) or internal transformation. Completion of this transformation may take a long period of time. Business transformation should consist of the right steps for the business. Organizational changes can be used to adapt to the new state of the emerging market, add commercial value to the business, and increase efficiency.

Types of Business Transformation

Every organization has a different structure. For this reason, no one type of change adapts to everyone. The transformation aimed by the business depends on its sector, situation, time, and place.

Organizational Transformation

The focus of organizational transformation is its employees. It is concerned with how business is progressing company-wide, what is working and what is not, and evaluating opportunities for improvement. Processes such as increasing the skills of the personnel, ensuring cooperation between departments and teams, and hiring new members are managed.

Business Process Transformation

Business Process Transformation focuses on how the business grows and progresses day by day. Business Process Transformation should be a continuous process. This transformation is aimed to overhaul the methods, working styles, and processes of a business and to ensure that these steps are continuous. Business Process Transformation requires agile thinking. Leaders need to be open to change without getting stuck with standard thinking.

Management Transformation

Management Transformation, as the name suggests, includes changes in the leadership structure. Its purpose is to create a leadership structure according to the potential of the business. For a business to grow and adapt to the necessary changes, leaders must meet all the requirements for management. Matters that need to be agreed upon between partners can sometimes take months. Management Transformation aims to enable stakeholders to manage business processes without acting independently of each other.

Digital Transformation

With the advancement of technology, the way businesses work has fundamentally changed. Digital transformations aim to leverage technology to help the business grow. For example, a product that will allow you to manage your business's IT assets is a good example. The doors of the digital world have been opened to all sectors with many privileges. The important thing is to take the right action and take advantage of all the points we need.

Cultural Transformation

The last of the Business Transformation Types, Cultural Transformation is one of the most difficult processes to fix. Managing Company Culture is difficult but vital to the success of the business. From the decisions made by leaders at board meetings to the way, the customer service representative speaks on the phone, anything that will affect business culture is relevant to this transformation. Successful Company Culture empowers employees, increases productivity, and drives your customers to your brand. It is also important that your company culture evolves organically over time. Negative company culture cannot be fixed overnight. That's why Cultural Transformation is complex and demanding. All employees must act with a common consciousness.

Challenges During Business Transformation

Business Transformation needs a clear plan and strategic vision, no matter what industry or organization it is in. If you don't know the reason for the change you are looking for, you cannot determine your direction. Your risk of losing momentum increases.

To be successful in transformation, all leaders in the organization must meet on a common denominator. Especially the responsibility of leaders in the transformation process is of great importance. It is the responsibility of leaders to explain that all employees, from the smallest unit to the largest unit of the organization, are an important part of this change. Staying in your comfort zone can always give a sense of security. But if you want change to be successful, you have to step out of your comfort zone and adapt to change. Unfortunately, leaders who can't think innovatively and don't have the potential to drive business transformation can't get through this process easily.

Organizations need to act with decisive and correct actions to maximize their value.