Today’s technology-enabled business landscape, global operating environment, increasing regulations, and ever-changing customer expectations are making the business environment highly complex. The rapid penetration of digital technologies, cloud computing, social media and mobile computing are challenging successful business models.
The once superior operating environments are becoming legacy burdens for organizations as they try to capitalize on new technologies. Product and service offerings are becoming obsolete faster and getting commoditized due to lack of differentiation. Organizations can achieve and maintain competitive edge through constant innovation, operational superiority, and strategic differentiation.
Competitive Advantage = Innovation + Operational Superiority + Strategic Differentiation
Organizations conceive business transformation initiatives to drive innovation. Enterprise level transformation programs are launched to build and maintain distinct, superior operational infrastructures. Organizations embark on transforming sales, marketing, and customer-facing functions to strategically differentiate themselves against the competition.
In my experience, organizations of varying sizes in different industry sectors are more successful at business transformation when they apply the same rigor, focus, consistency, and professionalism to business transformation as they do to other critical disciplines.
High-performing organizations have found a way to build and continuously enhance business transformation capability. The ability to plan and execute business transformation in a holistic, structured way can elevate business transformation capability to a strategic capability. Business transformation management is the capability to initiate, plan, execute, and monitor the transformation initiative and sustain business outcomes.
Business transformation management integrates and aligns the six dimensions below to drive business transformation success:
- Strategy: Align transformation to organization strategy and objectives to be achieved.
- People: Manage human capital and encourage the workforce to embrace changes.
- Process: Redesign current business processes and implement the new processes.
- Technology: Develop and integrate the ever-changing technology landscape.
- Structure: Assess and restructure organizational model for improved performance.
- Measurement: Gauge success by evaluating actual value delivered by transformation.
The Business Transformation Capability Maturity Model can be applied by organizations to assess the current maturity level of transformation capability and drive actions to enhance that capability. Organizations need to build and continuously improve their business transformation capability.
Maintain control of your projects and programs to keep a competitive advantage. Learn the project management tools you need with these AMA resources and seminars: