Business Transformation and Change

BUSINESS TRANSFORMATION AND CHANGE

Table of Contents
Introduction 2
Key Factors Driving Change 2
Leadership Style 3
Change Management Strategies 3
Progress Analysis 4
Conclusion 5
References 6
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Introduction
Business transformation is an important concept in today’s changing business environment.
Globalization has opened scopes and opportunities for overseas business interactions all across
globe. The changing trends and patterns in business needs and demands signify an important
change in the way businesses are dealt (Roome & Louche, 2016). In order to keep up with the
changing business environment, it is absolutely necessary for all organizations to bring specific
changes in the organizational processes in order to meet the new requirements of the time. A
business transformation is referred to the process of changing an organization’s systems and
operational processes with new modernized systems and devices in order to reap added benefits
to the organization.
In order to develop an in-depth analysis of the concept of business transformation, this paper
takes up the incident of Stena Line Company of ferries and discusses the process of business
change in details (Nohria, 2017). The CEO of the Company, Gunnar Blomdahl, had recognized
the need to bring in relevant changes in the business organization and invested a significant
amount for increasing the look and size of the operation. However, it is not enough to apply
changes in an organization; it is also necessary to govern the execution of changes in the process
of transformation and assess the improvement of the organization.
Key Factors Driving Change
The key drivers of change in an organization are inclusive of the dynamics of internal and
external business environment. A successful innovation strategy requires understanding the
specific needs and requirements of the corresponding business market (Alvesson & Sveningsson,
2015). As per the incidence of Stena Line, the increase in the use of ferry as a mode of travel has
increased their business opportunities; however, inefficient understanding of the changes
required has left their innovation incomplete and inefficient. The various factors that drive
change in an organization need to be assessed carefully by the CEO of the Company, in order to
achieve success in the transformation process. The key factors driving change in organizations
are briefly discussed below:
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Commoditization: Commoditization of products and services is a key factor that drives change
in an organization (Carayannis, Sindakis & Walter, 2015). With the increase in demand for
products and services the price of the same falls down significantly, causing monetary loss for
the organization. Therefore, it is necessary to analyze the corresponding business market that
would provide sufficient information about the external conditions of the organization and
indicate towards the relevant changes.
Digital Revolution: The digital revolution is another key factor driving changes in
organizations. The digital boom has led to increased access to information regarding Companies
and organizations-- giving rise to more options and opportunities, when it comes to buying and
selling (Kane, Palmer, Phillips, Kiron & Buckley, 2015). The easy access to information through
the internet makes it suitable for the consumers to compare the products and services offered
with similar alternatives with lower prices.
Social Media: Social media is another key factor that plays a vital role in driving changes in an
organization. Social media provides an open platform for multiple business interactions,
including sharing reviews of used products and services. It is a vital source of promotion as well
as criticism (Hwang, Ramakrishnan & Wood, 2015). Social media is also an important platform
that can be used to gather relevant information about the corresponding business market and the
consumers. In order to present the organization as per the demands and expectations of the
present consumers, it is necessary to have an in-depth understanding of the business environment
and bring in relevant changes in the operational processes.
Globalization: Globalization is another major factor that has made the world a smaller place for
business interactions. Free trade amongst countries all over the world not only offers a larger
market for the products and services produced, but also provides a larger scope for buying for the
customers. Customers now can compare different products regarding their pricing, utility and
convenience before deciding on their purchase (Singla, Ahuja & Sethi, 2017). The availability of
alternative sources in the market increases the stiff competition amongst the various market
forces. It also forces the organization to take up relevant changes that would make their products
more suitable and attractive for the target consumers.
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