Business Transformation is the initiative to make a fundamental change in the business through changes in the Business model.
It is a business initiative to change the existing Business model to reinvigorate the company. There can be many underlying reasons for Business Transformation.
The following are a few examples:
The company has lost its ground
Rather than competing on the price, the companies pivot to focus on niche markets. For example, Apple innovative products (iPod, iPhone, iPad) created a new market rather than competing on desktop computers.
Change in environment
As the environment changes, so make the demand. So these companies transformed their model to choose new customer segments. For example, Hugo Boss moved away from German army uniforms to fashion after World War II.
Summary – What is Business Transformation?
The critical point is that Business transformation is about the fundamental change in the Business model. Companies invest in technology, resource development, and infrastructure to implement the transformation. These secondary initiatives are planned to meet the end goal of transforming the business.