4 Signs Your Business Is In Need For a Transformation7:07 AM
Markets are cyclic. Industries are suffering very highly-disruptive forces. Macroeconomic growth is slowing down. All of these are signs o...
1. Declining RevenuesEvery business is there to make money. If it is not making money, then something has to be wrong. Rethinking your Value Stream Mapping is not enough to find out why your business is not making money. A complete Transformation might be needed to change completely the way you add value to cut down your costs and focus on your real customers needs to deliver value efficiently.
2. Rising Operational CostsOperational costs consume margins and reduce the bottom line. Reducing such costs is what makes every manager sleepless. This is where Business Transformation becomes handy. Transformation is not just about slashing jobs to reduce compensation cost. It is about the redesign of Operational Processes to ensure the expected quality is delivered to clients at lower costs. Transformation is about redesigning and continuously improving business processes.
3. Rising CompetitionWhen an industry declines, competition consequently increases. Differentiation would be the key to sustaining and growing market share in such circumstances. Without Continuous Business Transformation, your business model will possibly be easily copied by competitors and products or services may be offered at a price less than what your company offers, which leaves no reasons for your clients to choose you instead.
4. Emerging substitutesLooking at the classical example, Kodak, which was a highly profitable business. However, Kodak did not react to a simple emerging product that threatened their business, namely the Smartphone. As a result, Kodak struggles until today to sustain a profiting business.
You might think that your business is doing alright, but with any signs of the above, the danger is coming, and your business must react fast.
What are your business struggles? Is your company already transforming its business? Do you have any Business Transformation success stories to share? Feel free to share with the readers any useful thoughts.