What is Business Process Transformation?
Business process transformation is like reengineering the business process. It is the opportunity to define a bold ambition that goes beyond incremental change—the opportunity to rethink your business and operating models to deliver breakthrough value. It involves strategic decisions that affect where you’ll grow, how your organization operates, and what kinds of performance improvements you can expect. It enables businesses to bring operational efficiency and accelerate the time-to-market for products and services. It also brings a complete change of business functions, workflows, and technology as per the tactical business demands.
The primary aim of a business transformation is innovation, and the adoption of new capabilities, technology, and concepts. It involves the evaluation of all the steps that are required to enhance the outcome of business processes by streamlining business functions and workflows.
Businesses looking to implement a major upgrade of existing processes usually make use of process transformation methodology. Digital business transformation is the most common type of process optimization that can modernize processes, save costs, and streamline the core business functions.
A successful business transformation means the business will not only survive but grow with the implementation of newer innovations. Business process transformation is usually in tune with emerging market demands and evolving process regulation policies.
Once initiated, business transformation can progress at neck-break speeds, therefore, a very high level of planning, integration, and alignment is required for business transformation.
Need for Business Process Transformation
Business process transformation is undertaken to achieve two goals: One is using innovation for better business outcome and differentiation, the other is to optimize business processes.
The need for business transformation varies with each business. Some of the reasons why organizations go for process transformations are listed below:
1) Aligning the processes with a new strategic goal: Keeping up with changing market trends or customer demands requires a change in the business strategy. In order to align with the new business strategy, digital process transformation is required.
2) Innovation-driven business growth: Forward-thinking businesses have innovation as the cornerstone of their business strategies. Business transformation is a great way to prevent stagnation in a business and to ensure innovation-driven growth.
3) Cost reduction: Antiquated or redundant business processes are expense centers for businesses. A well planned and executed business transformation cuts away extraneous steps in process workflows, which eventually reduces cost.
Business transformation is not a business fad, but a strategy that the leadership must take seriously at every stage of business growth. With the markets evolving every day, it becomes imperative to prioritize the effectiveness and efficiency of business processes on a regular basis.
A process transformation that works well for your business can bring significant, positive changes in operations, culture, and go-to-market strategy.
Spurred by the pandemic/recession, CIOs have sharpened their focus on processes, as companies strive for greater efficiency, better operations, a more compelling customer experience, and transformed business models.
More enterprises are now ready to pursue business process transformation, but they are still at an early stage, don't yet have sufficient resources, and have low maturity and understanding of business process transformation initiatives.
Getting to the process-driven business will not be easy.
This aspiration is actually a tall order and will require an unprecedented level of collaboration between senior business executives, business process change agents, CIOs, CMOs, as well as the leaders reporting to them.
But the choice to do nothing is a stark choice indeed: Rest assured that some competitors will choose transformation and could embrace new business models that completely remake your industry.
Achieve your transformation ambitions through our expert guidance to discover the path to successful business model change. Our specialists will take you through the digital transformation journey in a structured, easy manner.