Transformation is a comprehensive change in strategy, organization, people and perspective of doing business. The change that happens in only one of these is not a transformation.
Transformation can be initiated for many different purposes, but its biggest output is sustainable growth. The transformation that does not result in growth is incomplete or incorrect.
In our opinion, transformation should be organized around a business, product, customer or project that will bring growth and transformation together. Developing and growing a properly determined business / product, penetrating a properly determined customer, winning and completing a properly determined project, can be the driving force of transformation and a concrete example of the new era. It can bring new business perspectives, new skills and new high potential employees.
For us, the transformation is two-phased. The first phase is simplification and cost reduction while the second phase is growth focused. In the first phase, the necessary funds are provided for both simplification and for the second phase by reorganizing the business portfolio. In the second phase, the business model is developed according to the profitability of the business and the market situation. The new business model is implemented with successive "blitzkrieg" in which few "asymmetric battles" are initiated and executed.
Asymmetric battles are intelligent, extraordinary moves and uprisings used by players with limited resources in their disproportionate struggles against huge players with unlimited resources. In order for the transformation to have great effects with low resources, the projects that implement the new business model should be selected and managed with the understanding of "asymmetric battles".
The golden rule of successful transformation in fast changing and uncertain environments with limited resources is that implementation projects are determined and executed rapidly in small numbers that are compatible with the business model and each other. Just like a "blitzkrieg". New implementation projects are determined and carried out according to the experience gained from the implementation projects and the changing and uncertain environment conditions. Thus, the transformation proceeds in successive waves consisting of a small number of implementation projects.
We think the transformation is bipolar. While the main business is developed at one pole, new businesses are developed at the other pole.
Digital transformation is the transformation powered by emerging digital technologies. Technologies such as artificial intelligence, internet of things, cloud computing, big data and augmented reality provide opportunities to develop new strategies, products and services.
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While utilizing these new possibilities offers new opportunities it also protects from disruptive threats.
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Many companies show resistance to transformation and do not take advantage of transformation opportunities. This is not because of mismanagement. Transforming the company is one thing, managing it is another. The companies of yesterday and today are focused on implementing the current strategy / business model. Optimizing the current strategy / business model, increasing the short-term return and / or staying afloat by increasing its effectiveness and efficiency is the main goal of the management. However, economic, social, political and technological developments, epidemics and many other factors rapidly change the environment and the sector in which the company operates. Customer needs, competition conditions, employee expectations change. All this turbulence in the environment where the company does business requires a change in the current strategy / business model, or even the development of new strategies / business models. But management is focused on the current strategy / business model. And the blind spot created by the management's view of change prepares the ground for the disruption of companies.
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