Business Transformation

Published on

By Anne-Teresa Patt

Regardless of whether it’s an out-sourcing project, reinvention of a brand or the expanding of your services, processes of change within an organization can take many different forms.

Business Transformation: What It Is and How to Deal with It

A trigger for change within an organization can also come from external sources, for example:

  • pressure to innovate
  • changes in the market
  • merging of organizations or departments
  • new regulatory requirements

Today, economic changes occur more frequently and regularly define the every day working processes of organizations. No wonder then, the term Business Transformation is being so widely discussed. However, it seems that there is no standardized approach to deal with this phenomenon. Business Transformation also carries negative connotations, due to many organizations facing great challenges as a result of its use. Yet within change also lies the possibility for potential improvement of processes and organization-wide performance. You should make the most of this!

Advance your Organization’s Business Transformation with Defined Processes and Decisions

Regardless of whether your organization is directing its transformation management in a targeted way or sees it as a reaction to forced regulatory changes; an intelligent combination of people, processes and technology is required. Many organizations can improve on one thing in particular; when processes and decisions are not documented in a standardized way, this strongly impedes the speed of effective reactive change. Many companies therefore get swallowed by transformations in the market. To avoid this, it’s important that you document structures and processes transparently from the outset. Being aware of the importance of change and having a readiness for restructuring firstly requires an awareness from employees of processes and structures.

Those who understand business processes and actively aid in their creation will also understand internal processes and be able to easily recognize and implement the optimization potential. Documented business processes are therefore your most important reference when referring to:

  • defining tasks and responsibilities
  • checking the efficiency of processes
  • coordinating together and adapting processes when there are uncertainties

Processes are the key to successful transformation but documenting them is the first decisive step in adapting to new circumstances.

Furthermore, it is essential to connect processes with further influencing factors such as business decisions. Many organizations will confirm that a large part of transformation takes place on a compliance level, which leads to new questions: Which tasks do I still need to complete? How can we check compliance with these rules from now on? These questions are largely answered by issuing complex regulations that often necessitate training, where employees learn under which circumstances they can approve a claim or a loan. In individual cases, it is not always clear whether the standards are implemented and whether the changes are really taken into account. The creation of rules, the retraining of the workforce, the constant re-examining and checking are all costly endeavours in terms of time, effort, resources and money.

The management of operational business decisions on a process level can become the key for successful change with a modern Business Transformation platform. Previously, business decisions weren’t really considered part of Business Process Management initiatives. With modern systems, it’s possible to integrate decisions directly into process diagrams and still manage them separately – a method which makes the interfaces between processes and decisions visible, and ensures that every employee is aware under which conditions they can make a decision. With modern solutions, it’s even possible to automate decision as well as processes, saving a considerable amount of time. When regulatory requirements change, the foundation decision logic saved in the platform can be easily adjusted and automated so that you don’t have to check every individual case separately.

Structured management of daily processes and decisions is the foundation for successful implementation of change. When process and decision management is used throughout the organization can you react to change in an appropriate way and even work towards a new beginning.