The traditional approach of sporadic transformation project sprints is becoming outdated as innovation continues at a breakneck pace. CXO needs to facilitate organizations to go beyond digital transformation as opposed to merely focusing on upgrading and/or implementing new tech platforms. Businesses need to continuously re-imagine customer opportunities and experiences, reconceptualize internal business processes, and gear operations toward improved outcomes, growth, and cost optimization to deliver more robust strategic collaborations as part of the NextGEN ecosystem.
The organizations should embrace the philosophy of Perpetual Business Transformation (PBT) in that continuous improvement leads to ongoing innovation and the ability to extend beyond internal and external barriers to achieve business excellence. The purpose of the PBT is to harness innovation to reconceptualize an organization's value chain, people, and customer experience leading to new revenue streams, business models, policies, and values. The PBT is about looking at the holistic ecosystem and transforming current business models, where as Digital Modernization may only focus on bringing an organization "up to speed" with the latest technology. The PBT has the power to fundamentally alter the direction of business and foster new trends such as "Convenience culture" and "Digital-led economic recovery".
Customer centricity, continual innovation, and a long-term perspective are the three guiding principles of the Perpetual Business Transformation. By leveraging the PBT framework, contemporary organizations can escape diminishing returns on conventional technology focus areas and consequently achieve optimal outcomes that have a tangible impact on the bottom line.
The PBT Operating Framework
The PBT Framework can be used to continually assess customer needs, identify opportunities for business transformation, and conceive, implement, and deploy innovative solutions that realize business benefits. A focus on business value at each of the four phases of the PBT framework is significant when integrating the PBT framework into an organizations' DNA via an agile approach.
Organizations should embrace the philosophy of Perpetual Business Transformation (PBT) in that continuous improvement leads to ongoing innovation and the ability to extend beyond internal and external barriers to achieve business excellence
Evaluate to Grow - The value of the PBT lies in responding to the needs of empowered consumers and in driving more responsive, agile, and innovative models. Design Thinking and User Experience (UX) are ideal for facilitating innovation and supporting the holistic PBT process. Professionals can consequently review and assess current competencies to identify the disparities and most significant impact areas.
Innovate to Transform – Investigating internal and external capabilities to provide solutions to meet the company's rapidly increasing demands across customer experiences, personalization, big data, causal analysis, social monitoring, and more.
Renovate to Run - While developing internal competencies and organization frameworks to augment the transformed solutions, leverage the capabilities of partners and service providers to implement the identified innovations.
Deploy to Realize - Empower organizations to attain a more collaborative and agile culture by reducing the number of silos and embracing the need for continuous change.
Perpetual Business Transformation: Five key elements
Business transformation is not a destination; it is a perpetual journey. Although a long-term view and strategic plans are fundamental, organizations must take a flexible approach that is mindful of the propensity of disruptive technology to significantly change the roadmap at any given time. Fostering a change culture enables an organization to be flexible, agile, and nimble in response to fluid customer needs and expectations. Culture spans the following activities:
1. Customer experience (CX) – Concentrating on customer needs throughout the customer experience beyond the accessibility of products/services to managing desired outcomes of products/services
2. Technology adoption – Avoid short-lived trends and technology hype , and focus on business applications that deliver clear value. Leverage off-the-shelf platforms that can kickstart transformations as opposed to focusing effort solely on developing in-house capacities.
3. Entrepreneurial mindset - Taking an all-inclusive view of digital transformation initiatives, concentrating on small bets and specific strategies to progress quickly and gain implementation momentum. Introducing agile ways of working within a company can help it find new and inventive ways of resolving challenges.
4. Accountability through performance metrics – Establish a transformation-focused office that operates according to clear performance metrics a) to support stakeholder accountability b) identify areas of deficiency through education, research, liaising with subject matter experts, and other activities.
5. Governance to achieve value - To support an efficient level of alignment across the organization's business transformational endeavors and identify business pain points, leverage existing practices, intellectual knowledge (CoEs,...), and Application Innovation Services (AIS) to support the development of continual business value.
Approaching Perpetual Business Transformation through the lens of conventional technology support and operations can impede the transformation of an organization. As digital transformation projects have reached what seems to be their endpoint, organizations are becoming more susceptible to digitally native competitors, who are continually operating in search of new approaches by which they can disrupt the market. Therefore, organizations must modify how they view transformation, considering it a continuous process instead of a destination. Businesses can achieve constant innovation by evolving and driving change within their field. The PBT provides a perfect framework for organizations striving for continuously staying business relevant.