Earlier in this series of posts I shared a resources that I recommend for the Business Transformation exercise.
Here are three things to keep top of mind.
1. Where to next?
Your business transformation exercise will document a current and potential future state for your business. It can be challenging to describe that future state that will likely have propositions (products and services) you do not currently offer and will need to develop or source. You need to visualise this first looking at the cost and value of your existing propositions and how they can be improved. For example, what is currently in your offer that carries a cost but is not highly valued by your customer? On the other hand, what is currently delivered by your industry that you can set a new standard for that will differentiate your proposition. Can you take your propositions into adjacent markets? What are the big issues your customers face but may be unaware of that they need your insight? This is a tricky one and most people try to solve the question with technology; in the case of the issue is derived from technology so the solution is surely more technology. That is a technology view of the world and if you are selling oranges (my favourite analogy) then your supply chain is much more important. Do you know what is current and happening with your customers’ supply chain.
2. Same team or new team?
Assuming you come up with some new ideas do you create a new team to go-to-market or go with the existing team? Always a tough question and you may find some help in resolving this question in a book with the title Escape Velocity by Geoffrey Moore.
3. What is important to you?
Do you ditch the current business model in favour of your future vision and what is the transition. If your market is undergoing a transformation, as the IT industry is with cloud computing, the future is going to present new opportunities and then the big ask is; do those opportunities better serve what is important to you. If that is to build the value of the business (for a listing or trade sale) then there is evidence that a business generating recurring revenue is more highly prized than a business that relies on resale. I have heard this from the lips of people that have made the transition from a resale to a recurring revenue business and it takes 2 to 3 years (from experience) for the transition so if it is right for you then start planning now and the first step is your business transformation exercise.
1. Success is perishable so plan for ‘where to next’
2. You need to know if your existing team is ready to be your future team
3. What is the end game for you?
I am pausing this series of posts on business transformation as I start the research for a book on this subject.