What drives transformation and change in enterprises? Why do they need to change?
In a dynamic environment:
- customer needs change, prompting changes to the products and services offered
- competitors introduce new offerings which change the perceived value of products and services offered
- new opportunities emerge for offering different products and services
Each of these require changes to products and services offered and, in all likelihood, require changes to the enterprise capabilities which produce and deliver these products and services.
Each will require changes in operation and changes in performance.
Is the performance of your enterprise satisfactory? Could it perform better? Does it need to perform better?
How do you measure the performance of your enterprise? How do you know whether the current levels of performance are adequate? How do you know these performance levels can be sustained?
Exploring enterprise performance will require exploration of outputs and outcomes, both at the enterprise level and at the capability level.
This is a starting point for grounding what might be a much needed or much valued transformation of your enterprise. The question of performance can be approached in numerous ways – this particular topic is about two models to explore which will enable you to:
- evaluate your enterprise
- develop a transformation strategy (if necessary)
- execute your transformation program
- realise measurable and sustainable improvements in enterprise performance
Exploring business models
Business models provide a means of exploring external demands for change.
To understand the essential elements of business models, you may wish to explore the following articles:
From these, I hope that it is evident that business models provide a means of developing a shared view of:
- the products and services an enterprise intends to offer
- the value proposition of these products and services to prospective customers
Exploration of these issues can lead to identifying changes in enterprise performance to offer:
- different products or services
- enhanced customer experience in using the products and services
- lower cost (and price) products and services
This can be the beginning of identifying critical changes which an enterprise needs to effect.
Exploring operating models
Operating models provide a means of exploring internal demands for change.
To understand the essential elements of operating models, you may wish to explore the following articles:
From these, I hope that it is evident that operating models provide a means of developing a shared view of:
- the capabilities required by the enterprise to pursue its intended business models
- the capability gaps which need to be addressed and which may be evident through issues in capability performance
Given the fractal nature of enterprises and of these two models, they provide a highly effective means of exploring internal and external demands for change and transformation which can lead to realising improved enterprise performance.