In order to thrive, businesses need to adapt to changing market and customer requirements. This is even more true in a world that has been rapidly moving toward more and more automation and artificial intelligence.

These changes need to ensure your business remains competitive. However, they require much more than using a new management approach or making changes to a supply chain. Some of the businesses that have experienced major growth in recent years have done so by undergoing a complete business transformation.

The term business transformation is a relatively new one and was first used by the IT and management consulting sectors. Experts in both industries recognised that external changes that came about in the markets meant that major changes were needed in how a company is run.

Business transformation meant rethinking the entire operational model, making changes to  processes, technology implementation and personnel. However, business transformation is much more than just creating a more efficient working system. It requires a change in the corporate and decision makers mindset. Senior managers need to come up with a business strategy that continues to evolve in the future.
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What is business transformation?

Business transformation is an umbrella term that describes all the transformation processes  including operational and cultural that a business goes through, in order to cope with shifts in the market. Its goal is to generate new value, increase customer satisfaction and cut costs.

Even though business transformation sounds like a fairly simple process, it is often very complex and has multiple layers. It’s something that can take several months or even years to complete. As its scope and effect is broad the decisions that are made will affect every area of the organisation. For this reason business transformation needs to be driven from the top.

The CEO, Board of Directors and senior management team should be involved in the creation of any business transformation strategy and should recruit any external advice and expertise they need to help make it happen. The collective management efforts will help redefine the company’s vision and day to day operation. By breaking down the entire business model and deciding which changes need to be made to processes, personnel, and systems, more value will be created in the future.
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The 3 major benefits of business transformation

A complete business transformation is not to easy undertake. It requires SMART strategic decision making and an ability to implement and manage change, but if done properly the benefits are massive. It’s also important to note that in the long run, it is probably an organisation’s only choice if it wants to keep or increase its market share and make an acceptable return on investment.

Here are the three biggest benefits associated with business transformation:

1. Increased efficiency: the application of new technologies provide automation benefits that provide more streamlined processes in manufacturing with all the advantages that brings.
2. More productivity: with new working methods businesses can maximise their output and minimise waste.
3. Return on investment: With increased efficiency and productivity comes a better return on investment.

Business transformation does not come easy to many businesses but when done properly it can result in major advances in output and financial performance. To help your business make the changes necessary and ensure those changes result in the benefits you want to see, consider working with us as your business transformation and management of change consultants At Kaizen we have a lot of experience in helping clients put together transformational strategies for their businesses, please do not hesitate to call us on 01482 772261 or email us at info@kaizengroup.uk if you want to learn more about how our consultants can work with you on your business transformation development. We will be very happy to help you with any queries you may have.