In recent years, business transformation has become a hot issue and a trending topic in the SAP community. Let us dive into this blog post to find more sense on the matter.
What is business transformation?
A business may undergo a transformation for a variety of reasons. They could be the result of new technology, market shifts, low profit and turnover, resulting in cost cutting, or a merger and acquisition. These factors are critical for a company’s success, necessitating a change in the business ecosystem.
Business transformation is a change management strategy that encompasses any shift, realignment, or adjustment in a company’s operations. The goal is to improve the company’s alignment with its business strategy and vision by changing processes, people, or systems (technology) in accordance to the type of change being brought over.
The types of business transformation
Business transformation is divided into four categories: business process, business model, domain, and cultural/organizational.
Business Process Transformation
Businesses nowadays are focusing a lot on business processes. Data, analytics, APIs, machine learning, and other new technologies provide businesses with useful new opportunities to reinvent processes. Process transformation may add tremendous value, and technology adoption in many areas is quickly becoming a must.
Business Model Transformation
Businesses are in persuasion of digital technologies in order to change traditional business paradigms. Business process transformation focusses on a business, whereas, business model transformations focus on the fundamental building blocks of a business answering the question of how value is delivered in a company. Corporations that achieve business model transformation open up huge new prospects for growth in the market.
Domain transformation covers the portion where a business can change its entire business goals with respect to its focus in the market. Technological advances are redefining products and services. Many executives are unaware of the very real potential for these new technologies to open up entirely new markets for their firms and it is frequently this type of transformation that provides the most opportunity to generate new value.
A very long and unending digital transformation requires the employees to work together with the right mindset to cope up with the digital world. Certified B2B enterprises recognize that digital requires agile workflows, more interests in testing and learning, decentralized decision-making, and a greater reliance on business ecosystems.
Factors influencing business transformation
New technologies, implementations and integrations are a must to achieve business growth and a good business transformation strategy is essential if that path is summoned.
Every organization has the desire to drive efficiency. However, when the existing business processes don’t drive efficiency, then there is a need to change the business strategy.
Merger or acquisition
When two or more organizations with different approaches and cultures come to an agreement to merge, there might be great difficulty in adapting to the working environments. Hence business transformation is key here.
A change inside an organization to cut outgoings, whether in specific areas or across the board, may be triggered by high expenditures or a need for cost savings.
High customer expectations
Customers are the focal point for any business. If it comes to the table that there is no customer satisfaction or probably even have high and raising expectations from the business because of the previous customer experience, then there is a necessity undergo business transformation.
SAP business transformation
For companies to turn into SAP intelligent enterprises, there are a lot of modifications that must be implemented on a regular basis. To be more explicit, the existing SAP system must be regularly updated and upgraded with new implementations and integrations. Only then an organization or business will be able to stay current and compete with competitors who are continually installing implementations.
These implementations might be minor, such as custom updates, or major, such as an SAP ECC to SAP S/4HANA transformation project. In any event, business transformation is essential for each integrated release to ensure that all business processes and functions in the previously available SAP system are compatible with the new integrations.
But this process of business transformation is an extremely tedious process, which raises the question “Is there any way to eliminate the tedious work in this business transformation journey?
To answer this question, SAP introduced the business transformation as a service model as part of the RISE with SAP initiative. Many people mistake RISE with SAP for a single product. It’s essentially a collection of products presented by SAP as one holistic offering to assist organizations to undergo effective business transformation. They include
- SAP S/4HANA Cloud Suite
- System Hosting Options
- Business Technology Platform (BTP)
- SAP Business Network Starter Pack and
- Embedded Tools and Services
It provides a holistic transformation to an intelligent enterprise on your terms and on your schedule. With a simplified engagement and guided route through your business transformation, you can eliminate complexity. With the accelerated value provided by RISE with SAP and SAP’s powerful partner ecosystem, you can transform every element of your organization. SAP will provide quick time to value and the ability to thrive in the face of change, all without requiring large upfront investments. Click HERE If you wish to know more about RISE with SAP.
Keeping up with the technological advancements
As days, months and years advance, so will the technology, and so will all the factors which influence transforming your business. Although 80% of large-company executives see the need for transformation, only 33% are confidence that it can be accomplished in the next five to ten years. According to studies from thought leaders like McKinsey and Harvard Business Review, up to 70% of business and digital transformation initiatives fail. Hence it is highly important for all the SAP led businesses to find the right business transformation strategy.
Summarizing the above, in this blog post we covered the definition of business transformation, forms of digital transformation, factors impacting the above, and SAP Business Transformation headlining RISE with SAP
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