World Library  
Flag as Inappropriate
Email this Article

Business transformation


Business transformation

Business transformation is about making fundamental changes in how business is conducted in order to help cope with a shift in market environment.[1]


  • When business transformation is used 1
  • Components 2
  • Transformation examples 3
  • References 4

When business transformation is used

The need for business transformation may be caused by external changes in the market such as an organisation's products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense. This management approach is widely used:[2]

  • to increase revenue or market share
  • to improve customer satisfaction
  • to cut costs


Business transformation is achieved by realigning the way staff work, how the organisation is structured and how technology is used. Typically organisations go through several stages in transforming themselves:[3]

  • recognising the need to change and gaining consensus amongst stakeholders that dramatic change is necessary
  • agreeing what form the change should take, the objectives of the change and a vision that describes a better future
  • understanding what the organisation is changing from and what needs to change in detail
  • designing the new organisational way of working and its support and management
  • testing and implementing changes, usually in waves, typically over a number of years
  • bedding in the change so that the organisation cannot move back to how it was and achieves the intended benefits

Transformation examples

Examples of organisational transformation include:

  • General Motors transformation and restructuring[4]
  • BBC's Delivering Quality First programme[5]
  • British Airways strategic transformation programme in response to low cost airlines[6]


  1. ^ Harvard Business Review January 2007 Kotter
  2. ^ McKinsey Survey 2010
  3. ^ Harvard Business Review January 2007 Kotter
  4. ^ Transformed GM back in the game 2010
  5. ^ BBC website October 2011
  6. ^ British Airways simple route to business transformation 2005
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from World Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.