Business transformation can be categorised into three types: operational, operational model, and strategic. Operational transformation involves making existing processes more efficient or effective, often through technology. Operational model transformation requires a business to fundamentally change the nature of their operations, often driven by a shift in the external market. Strategic transformation is the most radical form, involving a complete change in a company’s core strategy or business model.
Businesses often struggle with transformation due to a lack of clarity about what type they are undertaking. A clear understanding of the transformation type is crucial for setting realistic goals, mobilising resources, and measuring success. For instance, operational transformations are often faster and less resource-intensive than strategic ones.
Additionally, businesses must be aware of the risks associated with each type of transformation. Operational transformations can lead to employee resistance, operational model transformations can disrupt customer relationships, and strategic transformations can result in a loss of identity or purpose.
In conclusion, successful business transformation requires a clear understanding of the type of transformation, realistic goal setting, effective resource mobilisation, and risk management.
Go to source article: https://hbr.org/2016/02/what-do-you-really-mean-by-business-transformation