{"id":956,"date":"2020-05-24T17:07:43","date_gmt":"2020-05-24T16:07:43","guid":{"rendered":"https:\/\/codify.in\/?post_type=encyclopedia&#038;p=956"},"modified":"2022-06-01T10:46:49","modified_gmt":"2022-06-01T09:46:49","slug":"transformation","status":"publish","type":"encyclopedia","link":"https:\/\/codify.in\/de\/glossary\/transformation\/","title":{"rendered":"Transformation"},"content":{"rendered":"<p>Innosight&rsquo;s Scott Anthony paints a beautiful picture by saying that transformation is <i>&ldquo;[a] fundamental change in form or substance, like liquid becoming gas or a caterpillar becoming a butterfly.&rdquo;<\/i> For organizations this implies that their future manifestations will bear little or no resemblance to their past forms, which also differentiates transformation from (incremental) change or turnaround management.<\/p>\n\n\n\n<p>You will notice though that in everyday business parlance the term (business) transformation denotes many things. The three most common description patterns are shown in the table below. If we refer to transformation we usually mean the second and third levels in terms of a &lsquo;<a href=\"https:\/\/codify.in\/de\/glossary\/dual-transformation\/\" target=\"_blank\" title=\"Two simultaneous transformations which mutually reinforce each other. Typically one focuses on the core business (Transformation A) and one on new business opportunities at the edges (Transformation B).\" class=\"encyclopedia\">dual transformation<\/a>&rsquo;. However, when organizations buzz about &lsquo;<a href=\"https:\/\/codify.in\/de\/glossary\/digital-transformation\/\" target=\"_blank\" title=\"A fundamental change in how an organization uses digital technologies to deliver value to its customers and possibly reinvent itself in the process.\" class=\"encyclopedia\">digital transformation<\/a>&rsquo;, they tend to actually mean only level one: operations transformation <span class=\"zp-InText-zp-ID--2420821-PKTARH6X-_-2420821-U27SGN2F--wp956 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:PKTARH6X},{2420821:U27SGN2F}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': 'comma', 'and': '' }\"><\/span>.<\/p>\n\n\n\n<figure class=\"wp-block-table\">\n<table>\n\t\t<thead>\n\t\t\t<tr>\n\t\t\t\t<th>Level<\/th>\n\t\t\t\t<th colspan=\"2\">Definition of &lsquo;Transformation&rsquo; for a Company<\/th>\n\t\t\t<\/tr>\n\t\t<\/thead>\n\t\t<tbody>\n\t\t\t<tr>\n\t\t\t\t<td>1<\/td>\n\t\t\t\t<td>Operations Transformation<\/td>\n\t\t\t\t<td><p>Doing things better, faster, or cheaper, e.g. by &lsquo;going digital&rsquo;: digitalize existing operations.<\/p>\n\t\t\t\t\t<p><em>Example: Shift to remote work (as catalyzed by COVID19), digitalization of paper forms into online services<\/em><\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t<tr>\n\t\t\t\t<td>2<\/td>\n\t\t\t\t<td>(Core) Transformation A:\n\t\t\t\t\t<p>Operational Model&nbsp;<\/p>\n\t\t\t\t<\/td>\n\t\t\t\t<td><p>Doing what we currently do in a fundamentally different way: change some aspects of the <a href=\"https:\/\/codify.in\/de\/glossary\/business-model\/\" target=\"_blank\" title=\"A narrative of how a business works and makes money: it describes how it creates and delivers value to its customers at an appropriate cost and how it captures its share of value in turn.\" class=\"encyclopedia\">business model<\/a> and a large amount of the operational model.<\/p>\n\t\t\t\t\t<p><em>Example: Netflix postal shipping to streaming&nbsp;<\/em><\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t\t<tr>\n\t\t\t\t<td>3<\/td>\n\t\t\t\t<td>Transformation B:\n\t\t\t\t\t<p>Strategic Transformation<\/p>\n\t\t\t\t<\/td>\n\t\t\t\t<td><p>Change the essence of what we are doing: radically alter the business model.<\/p>\n\t\t\t\t\t<p><em>Example: Amazon Retail to Cloud Computing, Apple Computers to Consumer Gadgets, Fuji Film to Cosmetics<\/em><\/p>\n\t\t\t\t<\/td>\n\t\t\t<\/tr>\n\t\t<\/tbody>\n\t<\/table>\n<figcaption>Three levels of transformation<\/figcaption>\n<\/figure>\n\n\n\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>A profound or even radical change to an organization&#8217;s form and structure, which supports a departure towards a new future direction.<\/p>\n","protected":false},"author":2,"featured_media":0,"template":"","encyclopedia-category":[132,134,136],"encyclopedia-tag":[296,297,298,192,210],"coauthors":[142],"class_list":["post-956","encyclopedia","type-encyclopedia","status-publish","hentry","encyclopedia-category-digitalization","encyclopedia-category-innovation","encyclopedia-category-new-work","encyclopedia-tag-business-transformation","encyclopedia-tag-digital-transformation","encyclopedia-tag-dual-transformation","encyclopedia-tag-innovation-system","encyclopedia-tag-innovation-system-design"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia\/956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia"}],"about":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/types\/encyclopedia"}],"author":[{"embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/users\/2"}],"wp:attachment":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/media?parent=956"}],"wp:term":[{"taxonomy":"encyclopedia-category","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-category?post=956"},{"taxonomy":"encyclopedia-tag","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-tag?post=956"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/coauthors?post=956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}