Business that do not transform or did not take successful actions to transform will no longer exist! Here is why and how can we do it right.
The world is changing much faster than you can imagine!
With 700 million individual users on Tencent’s WeChat app, they have now turned to corporate clients: they launched Enterprise WeChat in April 2016, a Slack-like cloud-based collaboration tool for companies that also track leave days and expense reports.
Nowadays, in order to stay ahead of competitors or even just to sustain for survival, organisations across all industries keep changing their business to adapt to the rapid change in today’s market. Some businesses that do not transform their modus operandi, did not see the need to change or take sufficient actions to transform no longer exist. There are too many examples out there.
Almost 88% of companies have disappeared from the Fortune 500 ranking (by total revenues) in the last 59 years. That’s a lot of churning and creative destruction, economist has predicted that today’s Fortune 500 companies will be replaced by new companies in new industries over the next 20 years, usually the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and continue to decline.
Typical transformations examples in our experience are change of business model and processes, mergers and acquisitions, cross function organisational restructuring. These are not only within the companies but also across the entire value chain. Transformation will change the way of doing business, relationship of a company and its customers and suppliers, economic and social environment.
Our recent project experience shows a “holistic approach” to business transformation management is the key to success.
Critical Success Factors:
Matter of How
Your next question could be how do we achieve that? Well, it can be an Integration of business strategy, business process and organisational change, risk and sustainability. Forming an integrated management framework with holistic management can reduce complexity and value add to transformation.
It’s ONE ecosystem
A successful business transformation Influence all its group companies, customers, competitors, economic environment, government and regulations and investors. Our world is never linear or silo, it’s a multilevel, integrated and ecosystem that keeps changing!
To sustain business growth and adapt rapid change of today’s market, business needs to transform and create unique value proposition that can differentiate from others.