Business transformation may sound like an abstract term describing any series of changes within an organization, but in reality business transformation is a specific area of business leadership defined by fundamental changes to a company’s operations and culture. Business transformation is a holistic approach to organizational change and typically impacts almost every aspect of a business, including employees, equipment, and tactics. Even well tested investment and operating models can be modified or dropped altogether during business transformation processes.
Businesses may engage business transformation processes for several reasons, though a desire for increased efficiency and profitability is often a motivating factor. In some cases a company decides on a significant strategic repositioning that necessitates an organizational overhaul. For instance, executives at a company may decide to completely repurpose what they use the organization’s equipment and resources for.
Specific types of business transformation include data and digital transformations, organizational transformations defined by altered resource allocation, and business process transformation. The latter emphasizes how an organization goes about completing objectives and may overlap with agile transformation, which prioritizes new software and innovative solutions.