Business Transformation

In management, business transformation involves making fundamental changes to business to achieve organizational goals and business need to improve processes, technologies, and productivity. There are various reasons for initiating the transformational projects and they could be due to changes in product or services, operations, technology enhancement, new requirements, new regulations or new business needs implemented through cohesive efforts. Business Transformation typically imply technology implementation, mergers & acquisitions, business process re-engineering, etc and impacts the business, people, and technologies partially or completely, depending on the nature of the change. [1][need quotation to verify][2]

When business transformation is used

The need for business transformation can initiated due to for various reasons, internal or external changes. Internal changes could be changes in policies, operations, introducing new products or services, updating legacy systems or merger and acquisitions etc. whereas external changes could be changes in the market such as maintaining competitive edge, New operating model, adopting new regulations etc. This management approach also incorporates Business Process Reengineering and is widely used:[3]


Business transformation is achieved by one or more of: realigning business model, restricting organization, the core product or service portfolio of the business, target operating model, incorporating new technology and so on. Typically organisations go through several stages in transforming themselves:[4]

  • Idea or concept
  • Strategy Analysis by gaining consensus amongst stakeholders that change is necessary through discussion and approval of business need, high-level vision, business case.
  • Defining Current State by understanding what the organization is changing from and what needs to change in detail
  • Defining Future State through designing the future target operating model, new capabilities, management approval, and implementation approach.
  • Transition the future operating model into user community through pre-defined phases.
  • Benefit Realization through continuous enrichment and enhancement of the operating model to accommodate new organizational needs.

Business transformation can lead to developing new competencies and making better use of existing competencies.[5]

Transformation examples

Examples of organisational transformation include:


  1. ^ Harvard Business Review January 2007 Kotter
  2. ^ "Business Analysis: The Question and Answer, pg 11". ANISAN Technologies Inc, 2017. ISBN 9780990637455. Retrieved . 
  3. ^ McKinsey Survey 2010
  4. ^ Harvard Business Review January 2007 Kotter
  5. ^ Bak, O. (2016). Investigating Organizational Transformation in Automotive Supply Chains: A Case Study on B2B and Extranet. Strategic Change, 25(3), 299-314.
  6. ^ Transformed GM back in the game 2010
  7. ^ BBC website October 2011
  8. ^ Box: The Path From Arrington's Backyard To A Billion Dollar Business "Josh Stein started to connect the dots on doing an SaaS enterprise model. We credit him to being able to shine light for us on something we couldn't see." 2012
  9. ^ British Airways simple route to business transformation 2005

  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.



Connect with defaultLogic
What We've Done
Led Digital Marketing Efforts of Top 500 e-Retailers.
Worked with Top Brands at Leading Agencies.
Successfully Managed Over $50 million in Digital Ad Spend.
Developed Strategies and Processes that Enabled Brands to Grow During an Economic Downturn.
Taught Advanced Internet Marketing Strategies at the graduate level.

Manage research, learning and skills at NCR Works. Create an account using LinkedIn to manage and organize your omni-channel knowledge. NCR Works is like a shopping cart for information -- helping you to save, discuss and share.

  Contact Us