What You Need to Know About Business Process Transformation. At its best, business transformation is a move to own the change that is sweeping an industry. Business transformation is a common term for a dramatic program of change that typically involves everyone in an organization. With Mentor’s help, Tele2 (Netherlands) were able to achieve: In 2007, BBVA faced changing customer expectations, and  industry disruption from new entrants, meaning BBVA had to adapt and evolve its financial offering. A primary metric driving the organization is how much water is saved by its clients annually, which now stands at 188 billion gallons, against a 2030 target of 300 billion gallons. In Mexico this figure was 29.6%, Redefined organisational structures to nurture change and innovation, 2,400+ customers signing up to the service with TalkTalk and Sky since the beginning of 2016, York placed as one of the top digital infrastructure cities in the UK, Broadband speeds up to 100x faster than the UK average, Programme to be expanded to cover 40,000 more premises by 2019, Estimated 2000,000 use the line on an average weekday, Extra lifts and escalators for people with mobility problems, 500+ customers onboarded in Germany, Austria and Hungary within 3 months of launch, Increase in digitally managed revenue to more than 50%, Net Working Capital reduced by almost €200 million (35%+ drop), New innovation process established – lean, agile, customer-centric. It’s no secret that transformation is one of the biggest challenges facing organisations today, with some grappling with multiple changes at any one time. They’re awkward and expensive, demanding complex, high-speed interactions between internal functions and major suppliers. For example, when leaders ensure that frontline staff members feel a sense of ownership, the results show a 70 percent success rate for transformations. Over the next ten years the city invested $4.5 billion in the Second Avenue Subway system, achieving: In 2014, the manufacturing industry was characterised by steel supply chain inefficiency – typified by long delivery times, incorrect delivery times, high inventory levels. We looked at the shift to combat climate change, and we became one of the few companies to wholeheartedly make this profound decision, to be one of the first to go from black to green energy.”. When both principles are used, the success rate rises to 79 percent. When the firm now known as Ørsted divested its oil and natural gas businesses and began phasing out coal, that created a giant earnings gap that urgently needed to be filled. Each of these companies developed new-growth businesses outside its traditional core which have become a significant share of the overall business. Over the years I’ve developed a list of key principles that must be observed to ensure that business transformations are successful. Ecolab, #16 on our list, is a prime example. VALUE: Judge change by how digital transformation helps create the next business; Since digital transformation doesn’t happen overnight, it also doesn’t hurt to show short-term wins along the way. Strategic Vision: Make sure you develop the right strategic vision, so you have a clear idea of where you’re going and how you’re going to get there. Let’s take a look at examples of digital innovations in marketing, sales, and service that build closer customer relationships and empower employees across all industries. You can use the following examples to inspire and demonstrate business outcomes that are based on actual transformation journeys. That’s why strategic transformation may be the business leadership imperative of the 21st century. Manhattan is the most densely populated county, placing high demand on transport infrastructure. “We broadened our vision and our purpose changed,” Baker says. All of this growth helped Tencent become the first Asian company to surpass $500 billion in market valuation. But the biggest failure factor is NOT what you think! Examples of digital transformation in retail. As of 2005, shortly after its IPO, Tencent defined its purpose in terms of “implementing our Online Lifestyle strategy, which strives to cater to the basic needs of our users.”. At HBR, we believe that a well-designed index can provide useful insights, even though by definition it is a snapshot of a bigger picture. Southwest, not United. In 2014, Tele2 (Netherlands) wanted to accelerate the launch... 2. Here’s a shot of the whiteboard for your reference! Such transformations are never easy. For inspiration, here are 5 excellent examples of brands that are driving success through digital transformation. Which business transformation principles am I talking about? 1000. The transformation traces back to 2016 when the first Microsoft Surface 3s were made available to schools in regional and remote areas. Our aim was to identify the global companies that have achieved the highest-impact business transformations over the past decade, using the same methodology as our 2017 study. Necessary cookies are absolutely essential for the website to function properly. Here are five company examples that show successful transformations, across a range of industries and locations. They will impact the customers. Published on October 19, 2016 October 19, 2016 • 156 Likes • 20 Comments In 2019, Tencent refined its mission once again, in response to the growing global backlash against technology’s dominance in our lives, boiling it down to: tech for social good. The combined company is now one of the world’s leading suppliers of hardware, software, and chemistry that helps manufacturers and service firms become more efficient users of water. In this post, we’ll review 5 digital transformation examples from industrial enterprises making big changes and seeing incredible results. DBS, Netflix, Alibaba among top 20 firms globally that have successfully transformed their business. However, digital transformation takes on different forms, depending on the industry, and encompasses unique business challenges and goals. Talktalk, alongside partners Sky and CityFibre, chose York as the first UK city to deploy its Ultra Fibre Optic Broadband. Each of above success factors involves transformation in itself. Find out how these companies succeeded where others failed. In 2014, Tele2 (Netherlands) wanted to accelerate the launch of a new mobile business with a capital cost of £150 million. Digital Transformation in the Enterprise 1. However, it’s the decision to infuse a higher purpose into the culture, one that guides strategic decisions and gives clarity to everyday tasks, that has propelled these companies to success. The first step in any successful digital transformation is to embrace the cloud and what it can do for your organization. For example, they began installing kiosks where customers can quickly customize their hamburgers. “As our teams widened their awareness of global issues, our pride has been enhanced.” So has Ecolab’s market value, which has surpassed $55 billion, placing it among America’s top 100 most valuable firms. ... AmerisourceBergen realized early on in their journey that business transformation can only be successful when a culture of innovation is established across the entire organization. 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