Spencer Nguyen - April 15, 2022
Business transformation is about fundamentally changing how a business operates to keep pace and remain competitive in the new digital-first environment. The goal is to adopt modern technology to improve the customer experience and corporate culture through improved operating models and technology. Read more about the elements of business transformation, why it matters, and how companies like Netflix have huge business transformation success.
What is Business Transformation?
Business transformation is a change management strategy. Business transformation’s goal is to realign business operations. Specifically, people, processes, and technology. All with the aim of better aligning the company with the core business strategy.
Addressing one or several business transformation elements may involve changes to the entire company. It could also entail addressing a specific function such as HR, Supply Chain or Finance. For example, a drive for greater efficiency may prompt a new Human Resources Information Management System (HRIS).
Drivers of Business Transformation
There are many reasons why a company may choose to take on business transformation. Usually, transformation takes place in response to change. In today’s highly competitive market, disruptive technology is creating new business models. As a result, companies must adapt to meet consumer expectations. Transformation is necessary for flexibility and adaptability to respond to constant change.
Technology Advances
As technology evolves, companies are looking for ways to leverage this new technology. Technology as one of the elements of business transformation is especially important. Why? because more companies are finding ways to use technology as a differentiator.
Efficiency
When a company isn’t meeting goals and objectives, it must find ways to improve efficiency. This may involve:
- Eliminating duplicate business processes
- Automating processes
- Changing the organizational structure
- Integrating new technology
High Costs
Overspending hinders efficiency and growth. These high costs may prompt the organization to seek cost savings.
Slow Business Growth
Current operations may not be allowing a company time and resources to focus on digital innovation and growth. The organization must look for ways to improve operations. That way they can spend more time on activities that deliver higher value to the company.
Declining Customer Satisfaction
When customers aren’t happy, the retention rate suffers. As a result, companies may seek ways to adapt operations to better meet customer expectations.
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4 Elements of Business Transformation
Business transformation relies on new strategies, specifically in the areas of technology, operations, customer experience, and employee experience. Each element helps companies achieve efficiencies in all business areas.
Essential Elements of Business Transformation: Operations
Efficient operations are one of the essential elements of business transformation. Efficiency is critical to converting revenue to profit and supporting growth. Advances in technology have shifted focus to implementing technology to improve operations. Technology such as cloud, Artificial Intelligence (AI), and Machine Learning (ML) are transforming operational capabilities. Business leaders see how operational excellence through technology can enable more engaging customer experiences and business models. Companies are focusing on process automation and connected operations. They are also focusing on real-time data analytics to support data-driven decision-making.
Essential Elements of Business Transformation: Customer Experience
Today’s digitally aware consumers have high expectations. These customers expect personalized and engaging experiences. Companies must focus on transforming the customer experience as an element of business transformation. Organizations are focusing on three areas:
- Experience Design: Improving customer satisfaction through advanced technological experiences and personalization
- Customer Intelligence: Collecting and studying customer behavior data to improve service and product offerings
- Emotional Engagement: Finding new ways to get the customer engaged with the brand
Essential Elements of Business Transformation: Employee Experience
The employee experience can hinder or enable operational efficiencies. Accordingly, companies are focusing their transformation journey on the employee experience. Two areas of focus are:
- Augmentation: Adding more team members to support new workflows
- Future Readying: Training existing employees on new tools and technologies to prepare them for business transformation
Essential Elements of Business Transformation: Technology
According to the Harvard Business Review (HBR), investments in digital transformation efforts are projected to top $6.8 trillion by 2023. And a 2021 Gartner study reports that one in five CEOs cited digital initiatives as one of their top strategic priorities in the upcoming years. All of which point to technology as a critical element of business transformation.
Technology is an enabler of business transformation. At the core of a successful business transformation strategy is a robust, well-structured, and reliable digital platform. Without it, none of the other transformation areas can achieve their full promise. A few of the key digital technologies fueling successful digital transformation strategies are:
Cloud Computing: Leveraging computing resources such as servers, databases, and storage over the internet
Microservices: Tools to help modernize monolithic applications by breaking them into smaller units that can be shared and reused across systems and processes.
Agile Development Methodologies: Efficient and flexible development processes that support rapid development and releasing software
Application Programming Interfaces (APIs): Tools to help integrate systems to create workflow and operational efficiencies.
Low/Code and No/Code Development Tools: Platforms that make it easy for non-technical users to quickly and easily build and deploy new systems.
Business transformation is essential for a company to remain relevant in today’s competitive environment. By embracing change technology as a core strategy, companies can see operational efficiencies. Additionally, successful transformation projects translate to happier customers, ultimately impacting revenue.
DreamFactory: Fueling Business Transformation Through API Integration
API integrations are an important strategy for any company looking to automate workflows, modernize legacy systems and meet their transformation goals through digital transformation and offer new customer capabilities. Use cases for these integrations are endless.
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As a seasoned content moderator with a keen eye for detail and a passion for upholding the highest standards of quality and integrity in all of their work, Spencer Nguyen brings a professional yet empathetic approach to every task.