The world changes, society changes, and companies have to adapt to evolve as their environment evolves. A business transformation strategy is a critical component of any modernization program, and it involves a systematic approach that supports both the organization and the individuals within it to plan for change and then accept, implement, and benefit from it.

Its objective is to make changes in processes, people or systems (technology) to better align the company and its business vision according to the evolution of the market.

It could involve organization-wide changes, such as when two companies involved in a merger or acquisition need to be integrated. Or simply imply a change in a specific function, such as adapting the area of human resources or finance.

We are living in very interesting times, with multiple factors that affect at the same time and trigger an urgent need for transformation: globalization, the slowdown of Western economies, changes in the world’s economic engines, the democratization of technology, greater social awareness, greater demand for transparency and a general loss of trust at the public and private levels.

It’s time to think about how we’re delivering our value proposition, when was the last time it was checked… Perhaps the outcome will lead to the opportunity of implementing a robust business transformation program that will lead to genuine progress, Pursuit of efficiency and the opportunity to compete more successfully. Originally, these plans were driven primarily by production and cost savings motives, but today the transformation is focused on people thinking about how we can achieve greater employee engagement, greater reputation, and better connection with customers, which will accelerate future growth.

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3 MUST-HAVES FOR A BUSINESS TRANSFORMATION

1. VISION. Changes in business should respond to how they create and capture value. In traditional companies, creating value meant identifying customer needs and manufacturing well-designed solutions. Today, in a Connected Economy, value can be created in many different ways.

A clear strategic vision is essential. It is necessary to think beyond USP and take it directly to a business model where value is achieved through ways that include co-creation.

This means being able to understand and anticipate, as much as possible, what people value and want, as well as projecting the best way to achieve it. The scope of the changes and the redesign of internal processes and structures will have to be considered.

But be careful, most companies get their vision right, but they fail in the execution that ends up being the main reason for failure

2. PEOPLE. Anyone who doesn’t understand people doesn’t understand business. It is about humanizing the relationship between brand and person on a maximum scale and at all levels of companies, both externally and internally. In the past, employees were brand ambassadors. Today, employees are the brand and the brand is the business.

For this reason, it is essential to involve employees in the transformation process, maintaining open communication with them and making them feel involved at all times. How you treat and communicate with employees dictates the success of the transformation.

And on the other hand, it is necessary to think that customers need solutions, not specific products or services. Business transformation needs to be aligned with customer needs.

3. TECHNOLOGY. Technology, in itself, is experiencing a revolution: Big Data, Virtual Reality, Voice Systems, Artificial Intelligence, Avatars… But it should not be forgotten that the ultimate goal of technology is to make people’s lives easier. Therefore, there is no choice but to implement it with a vision from the outside to the inside, where technology is not an end but a means.

Amazon, Uber, Airbnb have seriously questioned the known status quo by connecting with people based on brand purposes that go beyond the product/service and using technology as a platform for development and connection.

Digitalization has brought with it an adaptation of people to a more agile, comfortable and connected world. Giving rise to a new consumer profile with the ability to influence the destiny of the brand. On the other hand, technology allows companies to receive real-time information, analyze data and follow the customer throughout the entire value chain to keep them loyal and safe, which in turn facilitates decision-making for the proper functioning of the business.

In conclusion, change is inevitable, but in order to achieve a transformation, it will be necessary to become aware of it, since it does not have an end point.

 

Carlos Puig Falcó

CEO of Branward

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