Strategic transformation changes an organization’s competitive set and finds new things to do in new markets, in a completely different way.
Strategic Transformation is often used in association with Business Transformation and Change Management, but it is more radical in nature. Business transformation and change management suggest significant changes to business models, business plans and even the metrics an organization will use to measure success.
However, strategic transformation is even more fundamental in its approach. It moves beyond operational model changes that are core transformations whereby a company continues to do what it has been doing except in a completely different way. (A useful example is Netflix’s move from DVD shipments to streaming video.)
Strategic transformation examples include, as Scott Anthony points out, Google expanding from content, search and advertising to driverless cars. Or, Apple moving from competing against Microsoft, IBM and Dell in manufacturing laptops to mobile devices that take on Sony, Nokia and Motorola.
Business transformations are bold, seismic shifts that organizations make to accelerate change and growth beyond typical incremental advancements. The scope is broad and strategic, such as switching to new business or operating models.
If poorly conceived, the entire business is at risk. If executed well with a sound corporate strategy that is supported by a customer-centric organization with the right go-to-market plan, the rewards are significant.
Outside factors such as pandemics will continue to drive significant transformations that will also shape the future of the type of leadership organizations will need. Change is permanent, but companies are not. The mighty do fall; just because you were terrific in the past doesn’t mean you will be in the future. The question for business leaders today is, are you bold enough to bring disruptive change and drive a true business transformation for your organization?
At TechCXO, we can provide the skill set to help an organization define what and how to accomplish its goals and address all three types of transformation.
Our strength is the expert advice provided but equally important the ability to deliver, execute, and implement the organization’s decisions to bring about the type and level of change the organization desires. Our effort may include helping you find ways to strengthen your current core business while at the same time helping you create tomorrow’s core business.