When the technology landscape started reshaping in 2010s with the increasing importance of cloud computing and AI, the technology corporation IBM led by Ginni Rometty foresaw its future contours. It was time for the company to metamorphose from being hardware centric to one focusing on cloud and AI. It started divesting from some hardware businesses and accelerated the investment in cloud computing and AI. It brought within its fold companies such as SoftLayer for strengthening its capability in cloud computing. With its focus on meeting the evolving needs of its clients, the company made a successful transition to cloud and AI solutions.
This is an example of bringing about a business transformation without compromising performance. In today’s volatile business environment, making such shift has become more important than ever. Although there are several strategies that can be effective for meeting this business objective, business leaders must keep a few crucial strategies in mind while considering such transition.
“A stitch in time saves nine.” Making incremental changes offers the comfort of dealing with manageable risks. By taking the initiative on a smaller scale, businesses can prevent large scale disruptions that could affect overall performance. The insurance of business continuity is a big relief before taking steps towards a business transformation. The best part is that the impact can be assessed with real world feedback and corrective measures can be taken on the go. Another advantage of this strategy is that the employees get sufficient time to adapt to the change. Not only that, the quick wins through incremental changes also fuel their enthusiasm.
McDonald’s is one company that has successfully implemented this strategy. It started an initiative "Experience of the Future" which involved gradual implementation of self-service kiosks, table service, and mobile ordering. The phased approach allowed the company to tweak the technology integration and take corrective actions as it happened.
Without weakening performance, strategic partnerships and alliances make business transformation possible. They are windows to outside knowledge and resources, helping speed up the innovation process. Businesses can achieve steady overall performance by sharing risks and responsibilities. These collaborative efforts provide affordable solutions, shorten time-to-market and create opportunities for growth in market share. The matching of complementary strong points, cultural unification and common market vision reinforces plasticity. Choosing to transform in concert is the way forward. Cultivating such strategic partnerships creates a robust ecosystem, where organizations can move with the changing tides of business and remain at peak performance.
The 2014 partnership between Apple and IBM shows how teaming up can spark significant business changes without hurting the companies' performance. Apple makes slick devices that customers love. And IBM has deep roots in helping large organizations use technology. Together, they have slowly rolled out custom mobile apps for specific industries - apps that run on iPhones and iPads but solve problems for big companies. It has been a win-win, and Apple now reaches big corporate clients that used to buy mainly from IBM. And both companies seem pleased with how it is helping sales and profits. The key has been to focus on practical solutions for real customer issues instead of just technology for its own sake. That careful, step-by-step approach has made the business transformation successful and let Apple and IBM lead the way in helpful innovation.
Business transformation without compromise to performance requires dynamic allocation of resources, which will ensure adaptability to shifting priorities and optimizing operational efficiency, thereby cushioning risks. The flexible scaling of initiatives and meeting project milestones is an effective way for the organization to navigate uncertainties successfully. Proper resource allocation fosters an innovative culture and supports increased employee productivity and burnout reduction. Dynamic resource allocation has to achieve cost-effectiveness if such work is performed on a high level, supporting budget optimization during transformation. Such an approach assists in agile responses to market dynamic changes and creates a strategic way of diverting resources towards effective competition within the market. In a nutshell, dynamically aligning resources with customer needs helps create a customer-centric environment that dictates operations within the overall organization.
For instance, Netflix's success in transforming its business includes dynamic resource allocation. The company began as a DVD rental service and cleverly distributed resources to streaming services, technology investment. It then went abroad with foreign companies. Netflix's evolution into an international streaming giant took place quickly when it began to produce its own shows. Because of this dynamic approach, Netflix became a powerhouse in Hollywood that attracted millions of subscribers and turned solid profits. Dynamic resource allocation, suited to changing industry conditions is of paramount importance in maintaining levels of performance and achieving a degree transformed success.
“With so much information at their disposal, many enterprises have to spend more time, resources, and skilled staff wrangling with the data. Overwhelmed, most business processes today are static — and they rely on ineffective or irrelevant information and/or on data that quickly becomes obsolete. To become truly data-centric, organizations must take a new approach to information integration and management. This includes taking an open approach to collaboration, with information exchanged seamlessly, instead of being in silos,” says Manish Dangwal, Country Manager - India Sales, OpenText Corporation India.
Business transformation in the future will involve a smooth convergence of innovation, technology, and sustainability. Only then growth with no compromises on performance can be achieved. Artificial intelligence, data analytics and automation will be efficiency levers enabling organizations to adjust rapidly to shifting market dynamics. Flexibility and responsiveness will continue to rely on dynamic resource allocation, coupled with agile methodologies. Companies will need to integrate and match business strategies with environmental responsibility. Transformative initiatives will continue to be catalyzed through strategic partnerships. Amidst businesses 'pursuit of resilience and adaptability, this future generation of business transformations holds the prospect for continuous high-performance in a changing world.
