Business Transformation in 2023: The Guide for Successful Implementation

6 Main Dimensions of Business Transformation

It is very important for organizations to focus on the main business capabilities that have a direct impact on how successful business transformation will be.

In reality, only a small number of total capabilities play a critical role in helping the organization find new ways to differentiate, gain a competitive advantage and compete. Focusing on those critical capabilities can help deliver greater value and help the organization realize its business transformation ambition.

The Deloitte Capability Hexagon provides a comprehensive approach to defining and designing enterprise capabilities across six dimensions:

• Mission. The purpose of a capability, how it will operate, and what value it will deliver. The mission is derived directly from—and supports—the company’s strategy.
• Insights. The decision flow, information, and analytics drive informed and timely decision-making.
• Integration. Clear roles, decision rights, and policies that facilitate integration within and across other capabilities, functions, and partnerships.
• Processes. An integrated and efficient set of processes designed to achieve the desired outcomes.
• Technology. The software, hardware, and tools required to enable the capability.
• Talent. The competencies, skills, talent infrastructure, and workforce planning enable an optimal talent base to execute the capability. This broader viewpoint allows organizations to frame and link execution to the value defined in the transformation ambition.

14 Steps to Succeed in Business Transformation

As many business transformation initiatives fail, we have put together the 14 main steps organizations should follow before and during their business transformation efforts.

One of the most important drivers of a successful business transformation strategy is employee engagement. Younger generations such as Gen Z and Millennials are having a big impact on DX initiatives in every organization.

Let’s take a look into the steps for a successful digital transformation strategy.

1. Evaluate your existing business situation

Before going into a business transformation project to tackle challenges, you need a clear view of how extensive those challenges really are.

Depending on the scope of your business transformation project, it may be necessary to evaluate all of the current workflows, procedures, policies, and practices used by the various functions, business units, divisions, or departments you’re looking to transform.

Only after you have a clear picture of your current processes and bottlenecks, you can better understand how new technologies and processes can eliminate the biggest business challenges.

2. Get executive buy-in

Because of their complexity and the resources needed, business transformation initiatives can be a hard sell to upper management. But because the C-Suite plays a pivotal role in defining the company culture, core values, and goals, it is crucial to prove the long-term benefits of the business transformation.

Once they are convinced about the benefits, they are much more likely to be a powerful ally in communicating the role of business transformation in setting and reaching organizational goals across the organization.

3. Get employees’ buy-in

After you get the executive buy-in, the next crucial step is to get your employees’ buy-in. In order for employees to collaborate in the process and align with your business goals, they need to understand the benefits of your business transformation efforts.

Employees need to understand why those changes are good for them and for the business. Only then you can expect employees to work towards the same goals.

Proper internal communication is extremely important here. Employees need to feel informed and well aware of how the changes will influence their jobs and lives.