TRANSFORMATION AND ITS NEEDS & CHALLENGES OF TRANSFORMATION

 Business transformation is about making fundamental changes in how business is conducted in order to help cope with a shift in market environment. TRANSFOMATION IN BUSINESS

 "A large-scale business transformation is characterized by an intervention from senior management, driven by situational factors, technological or internal changes that impact all dimensions of the organization, with the long-term goal of increasing the performance of the entire company." CONTINUED..

A transformation impacts all business dimensions : A transformation journey is never easy, and is filled with opportunities and hazards that can arise within all the dimensions of the company. CONTINUED..

1.External * Rise in customer satisfaction * Increased Sales 2.Internal * Employee Morale *Meeting schedules and targets * Reduced costs 3.Process * Quality Improvement *Innovations 4.Result *Increasing market share *Cash flow positive *Better Brand Image * Increased shareholder value DIFFERENT ASPECTS OF TRANSFORMATION

1.One of the greatest Business Trnasformation has happened with IBM. In 20 th century, company was in business of clocks and typewriters. But later it responded to change and transformed it. And currently It is leaders in domain of business machines. 2.IT Driven transformation in a logistics company or a bank. 3. British Airways strategic transformation programme in response to low cost airlines(LCC). EXAMPLES OF TRANSFORMATION

 “It is not the strongest that survive, nor the most intelligent, but the most responsive to CHANGE”. Charles Darwin. WHY BUSINESSES NEED TRANSFORMATION ?

Business needs transformation because of the following reasons: 1.Increasing costs due to use of old technology. 2.Lower work efficiency because of use of old working methods. 3.Lower profits due to use of traditional marketing and selling methods. 4.customer satisfaction. 5.For improving quality. 6.Innovation 7.For creating better brand image. 8.Increased competition. CONTINUED

 Challenge of setting a developed strategy.  Managing soft issues such as vision, purpose, beliefs & values etc.  Challenge in making employees aware of new technology. CHALLENGES OF TRANSFORMATION

 Employees’ resistance to change.  Cost related issues.  Measuring performance & results.  Managing Risk associated with any change/new concept. CONTINUED..

The world hates change, yet It is the only thing that has brought progress. -Charles Kettering