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Business Transformation appears to have began as a label used by software companies to recycling their consultancy processes in order to sell integrated information systems more efficiently and quickly.
Now business transformation means much more transformations occurs. It implies processes transforming across the business . It also implies that this is the only valid for the strategic process towards achieving their gole and target is your corporate vision or way forward.
Many organizations and consultancies appear to get lost in the chase for growth and change.
Transformation relies on implementation of effective market and stay-in-business
Strategies that attract more profitable customers in selected markets and lower operating costs.
Enabling Transformational Change
The move from 'running the business' or project delivery to business transformation
requires action at many levels.
At a project level, five key activities are:
Focus on benefits
Start thinking of projects in terms of business-led transformation activities, spanning
many functions. First the employee must think about benefits he stop thinking about the
products and delivery of the products.
The main objective of each project must be to gain specific benefits for all stakeholders.
Project planning must clearly show how these benefits will be realised by enabling
people to do things differently. The business changes required to realise the benefits must
be clearly identified, ownership for them must be established, and the overall plan must
address these changes as well as the delivery of any new technology.
To realise the benefits will depend on leadership of the project, the people involved, the
effectiveness of the project team and the quality of communication and engagement with
all the various stakeholders of the project. The implications for the role of the sponsor
and the project leader are significant. Do they and the wider team have the expertise, and
the time, to address the wider issues of transformation
to get the success in the business ,Getting the right people, at the right time
Expanding, developing and learning
Do projects, build in opportunities to explore the possibilities and learn about the
potential benefits? Is there an opportunity to evolve and refocus as the project
progresses? By itself this is a huge shift for many organisations. fixed and traditional
mindsets can be very damaging and often stifle any innovation or risk-taking. Risk taking
The project to be successful, will provide an opportunity for a continuous stream of
benefits. In many situations the focus and effort should come after the initial project has
been delivered. All too often the project team moves on as soon as the process change is
live and so the opportunity for continued benefits realisation is lost.
First discuss details and know about the all these factors is the need for skills and
knowledge development. This is about training and education and some significant shifts
in thinking are required to learn the new and best techniques for innovative produts
to approach transformation in a new way and not as just another change project.
In every organizations the main thing that is the outsourcing as the key strategy for
business transformation. Certainly outsourcing is a best strategy but it is not the
only one. equally not all outsourcing is transformational change. Outsourcing can only be
classified as transformational if it is SEEN by all parties. many organisations attempt to
mask this fact to customers and staff. If hidden then unless the new service demonstrates
measurable change and is perceived as so by service users then it cannot be
transformational. Many outsourcing services offer the same as in-house teams formerly
did is not transformational , it is transactional change.
in the searching for enterprise level organizations released by Capgemini Consulting in
partnership with the Economist Intelligence Unit, Western European businesses have
launched on average seven major transformation programmes in the past three years.
Of these, 44% are motivated by the growth of international competition, 34% are
motivated by industry consolidation and 34% are motivated by increased competition in
domestic markets. Whilst 86% of those questioned feel that managing these business
transformations is now an integral part of management, only 30% believe it is something
at which they excel.These transformation projects tend to focus on reducing cost due to
new economies of scale at an international level and, increasingly, on achieving growth
by seizing each and every opportunity offered by emerging markets. Whether the
intention is to boost turnover or to improve profitability, the study underlines the extent
to which economic globalisation impacts on the number and content of these
The analysis reveals two major forms of transformation:
Fundamental change that generates a strong impact on results in less than two years, such
as mergers and acquisitions (57%), outsourcing and off-shoring (53%), restructuring
(46%) or strategic changes (46%). These programmes involve external players and
generate major transformation within the organisation
Programmes that generate comparative improvement, such as value-chain optimisation
(33%), cross-functional performance improvement (44%), information systems
Tools for use in Transformational Change
Business Improvement Review tools have been used successfully as a key part in the
business transformation of many organizations - large and small. for more information
in the business improvement review.
In 1970, the scientist in the losses that he is described a trend towards accelerating rates
Of change. the scientist illustrated how social and technological norms had shorter
lifespans with the every that is coming people that is next generations, and he questioned
society's ability to cope with the resulting turmoil and anxiety. In past generations periods
of change were always punctuated with times of stability. This allowed society to
assimilate the change and deal with it before the next change arrived. But these periods of
stability are getting shorter and by the late 20th century had all but disappeared. In 1980
shift to relentless change as the defining feature of the third phase of civilization (the first
two phases being the agricultural and industrial waves). the scientist claimed that the sun
rise of every day will gives more anxiety for the previous phase like that in businesses
will cause much conflict and opportunity in the business world. Hundreds of authors,
particularly since the early 1990s, have attempted to explain what this means for business
In 1997, the scientist Wacker and Jim Taylor called this upheaval for five hundred years.
So They are claimed these major upheavals occur every 5 centuries. They said we are
making very innovative products currently. the transition from the "Age of Reason" to a
is also called the age of success. the scientist jermy rifkin (2000) popularized and
expanded this term, "age of access" three years.
In 1968, the scientist peter drucker(1969) coined the phrase Age of Discontinuity to
discuss the way to change forces disruptions into the continuity of our lives. In an age of
continuity attempts to predict the future by extrapolating from the past can be somewhat
accurate. But according to the scientist drucker the employees are now in an age of
discontinuity and extrapolating from the past is hopelessly ineffective. So the employees
cannot assume and cannot guess that trends that exist today will make products and
continue into the future. He identifies four sources of discontinuity: new knowledge and
techniques , culture and innovative production.
In 2000, the scientist Gary Hamel discussed strategic decay, the notion that the value of
all strategies, no matter how brilliant, decays over time. In 1978, the scientist dereck
abell (Abell, D. 1978) described strategic windows and stressed and gives more
importance of the timing (both entrance and exit) of any given strategy. This has led
some strategic planners to build planned obsolescence into their strategies.
In 1989, Charles Handy identified two types of change. Strategic drift is a gradual
change that occurs so subtly that it is not noticed until it is too late. By contrast,
transformational change is sudden and radical. It is typically caused by discontinuities
(or exogenous shocks) in the business environment. The point where a new trend is
initiated is called a strategic inflection point by Andy Grove. Inflection points can be
subtle or radical.
In 2000, Malcolm Gladwell discussed the importance of the tipping point, that point
where a trend or fad acquires critical mass and takes off.
In 1983, Noel Tichy wrote that because we are all beings of habit we tend to repeat what
we are comfortable with. He wrote that this is a trap that constrains our creativity,
prevents us from exploring new ideas, and hampers our dealing with the full complexity
of new issues. He developed a systematic method of dealing with change that involved
looking at any new issue from three angles: technical and production, political and
resource allocation, and corporate culture.
In 1990, Richard Pascale (Pascale, R. 1990) wrote that relentless change requires that
businesses continuously reinvent themselves. His famous maxim is "Nothing fails like
success" by which he means that what was a strength yesterday becomes the root of
weakness today, We tend to depend on what worked yesterday and refuse to let go of
what worked so well for us in the past. Prevailing strategies become self-confirming. In
order to avoid this trap, businesses must stimulate a spirit of inquiry and healthy debate.
They must encourage a creative process of self renewal based on constructive conflict.
In 1996, Art Kleiner (1996) claimed that to foster a corporate culture that embraces
change, you have to hire the right people; heretics, heroes, outlaws, and visionaries
The conservative bureaucrat that made such a good middle manager in yesterday's
hierarchical organizations is of little use today. A decade earlier Peters and Austin (1985)
had stressed the importance of nurturing champions and heroes. They said we have a
tendency to dismiss new ideas, so to overcome this, we should support those few people
in the organization that have the courage to put their career and reputation on the line for
an unproven idea.
In 1996 year the scientist adrian slywatzky showed that how the changes occurs in the
business environment and they are reflected in value migrations between industries,
between companies, and within companies. the scientist adrian claimed that recognizing
the patterns behind these value migrations is necessary if we wish to understand the
world of chaotic change. In the "Profit Patterns" in the year (1999) the scientist
described businesses as being in a state of strategic anticipation as they are trying to
spot emerging patterns. Slywotsky and his team identified thirty patterns that have
transformed industry after transforming to the industry. In 1997, the scientist clayton
christensen in this year 1997 took the position that great and successful financial
companies can fail precisely because they do everything right since the capabilities of the
organization also makes mistakes at some times. so the companies it self defines it's abili
ties and its disabilities. Christensen's thesis is that outstanding companies lose their
market leadership when confronted with disruptive technology. The scientist christensen
called the approach to finding the new markets and including markets and these are also
to discovering the emerging markets for disruptive technologies agnostic marketing , i.e.,
marketing under the implicit assumption that no one - not the company, not the customers
can know how or in what quantity is a disruptive product can or will be used before they
have experience using it.
A number of strategists use human resource planning or strategic planning techniques to
deal with change for this the scientist kees van der heijden in the year of 1996, for
example, the scientist heijden says that change and uncertainty make that the full
"optimum strategy" determination impossible. We have neither the time nor the
information required for such a calculation. The best we can hope for is what he calls
"the most skillful process". The way that is the scientist peter schwartz put it in the year
1991 is that strategic outcomes cannot be known in advance so the sources of competitive
advantage cannot be predetermined. The fast changing business environment is too
uncertain for us to find sustainable value in formulas of excellence or competitive
planning is a technique in which multiple outcomes can be developed, their implications
assessed, and their likeliness of occurrence evaluated. According to Pierre Wack,
scenario planning is about insight, complexity, and subtlety, not about formal analysis
In 1988, the scientist henry looked at the changing world around him and decided it was
time to reexamine how strategic management was done. the scientist henry examined the
strategic process is the best process for the organization and concluded it was much more
fluid and unpredictable than people had a great and successful ideas ,views ,impressive
thought. Because of this, he could not point to one process that could be called human
resource planning or strategic planning. Instead he concludes that there are five types of
strategies. They are:
Strategy as plan - a direction, guide, course of action - intention rather than actual
Strategy as ploy - a maneuver intended to outwit a competitor
Strategy as pattern - a consistent pattern of past behaviour - realized rather than intended
Strategy as position - locating of brands, products, or companies within the conceptual framework of consumers or other stakeholders - strategy determined primarily by factors are outside the firm
Strategy as perspective - strategy determined primarily by a master strategist
Limitations for corporate growth
A combination of factors can make organic growth hard to sustain. For one thing, firms often find themselves in saturated, price competitive markets -- pressured by customers who themselves are squeezed --and are forced to compete for incremental share gains with rivals who follow similar strategies. One answer to this challenge is to explore new "blue ocean" markets with new business models and offer a better customer experience. While this is an appealing growth path, the returns may not compensate for the higher risk and long delay before any returns are realized. This approach also does not account for the consistent growth records of Wal-Mart, Dell and IKEA, which have been methodically leveraging their low-cost business models in closely adjacent markets.
In other cases, disappointing growth can stem from organizational impediments (such as short-term incentives that subvert long-term objectives), risk-averse cultures and inferior innovation capabilities. Day says 80% of CFOs of major corporations would reportedly hold back on discretionary spending designed to fuel growth if they were likely to miss their quarterly earnings target.
Methods of growth
Financial organizations are concerned with the purchase of stocks and the selling of end
Products that is selling of products at the last and also purchasing of stocks using a large
scale approach. Modern production plant are able to operate using small and large
components and materials that are purchased just-in-time for their use. The production
line is managed at the speed required to meet the needs of end consumers just-in-time.
Because companies like BIC and Gillette use the many mass production techniques and
they are able to operate their plant at high levels of capacity, while benefiting from bulk
purchasing of components, equipment and materials.
Role of business synergies
Inspiring vision and stretch goals
Every one goal and vision performs both a directional and a bets function. The purpose of your vision of a desirable future is to get inspiration provide direction, and focus you on those things you could do now to bring that future state about.
First you set your goals on your journey to your vision and your true self. Stretch goals energize and push you to work harder at meeting more difficult targets and to achieve more than if you had set an easier goal.
Take action and don't quit
To get success every one asks them selves these following questions they are: Why? Why not? Why not me? Why not now?" advises James Allen, according to another author the Success is about persistent, consistent action. Action is the key. If you do not take action you will achieve nothing. So, set stretch goals and take action.
Balance action and reflection and reflection of where you are now and action of pushing toward where you need to go.
Never forget that failure is just a step to your success. The technology is teaches us, "There is no such thing failures, that is only feedback."
Feed back means is the reply to the some work and it is the breakfast of champions and the foundation of success. It will help you learn and do better next time. Take notice of feedback in all its forms. Pay attention to detail.
If what you are doing is working, find out the ingredients and sequences, then repeat them to get more of it. If what you are doing isn't working, be attentive and do something different.
The art of living and thinking
The art of living helps in to get success or to reach goal and you achieve much more with much less effort. This effortless skill comes from being in accord with reality.
The art of thinking also helps to get success in the short way so think properly and get success easily.
Characteristics of Successful Businesses
A successful emerging growth business is likely to display many of the following
Sensibly financed (with prudent mix of equity and debt).
Strong cash position (with access to follow-on or contingency funds).
Offers above-average profitability (in terms of return on capital invested).
Aims for rapid growth in revenues (with profits lagging but in prospect).
Targets expanding, or otherwise attractive, market segments.
Develops a strong franchise or brand.
Devotes substantial resources to innovation (R&D, offerings or market).
Competes on non-price issues (e.g. quality, service, functionality).
Very close to customers and responsive to their needs.
Seeks specialist/leadership image with superior offerings.
Well managed with high-grade staff & good people-management.
Risks in medium sized business
Foreign exchange risk
Interest rate risk
Commodity price risk
Risks posed by competitors
Risks posed by the market / economy
Risks posed by the death of the business owner
Other risk management issues
Organizations should be proactive and learn before changes takes place in that
Organization . adaptive learning organizations change within their existing cultural
Values while generative learning organizations change and learn from the change in the
new cultural value environment. Organizations learn by creating conductive environment
knowledge acquisition, knowledge sharing ,knowledge creation and development
through discussions , interviews and brain storming etc.