Transformation or Change is very critical and essential in any business. The moment stagnancy sets in, business moves on a downward trajectory. There are various reasons for this which can be external or internal to a business. Identification of this phase at the right time is the key to the future of your business.

External Factors include Market Saturation, Technological advancements making the product obsolete, change in the customer needs, an aggressive competitor, etc. Internal factors include, business strategies, organisational structure, efficiencies of the supply chain & functional processes, team, etc.

Business Transformation is all about adapting to the change or bringing about a change which directly impacts the business such that the business moves out of the stagnancy phase has better sales, optimised processes & costs and better bottom line.

Lets take the example of Nokia’s Mobile Division.

From 40% of global market share in 2007 to selling off the Mobile division to Microsoft in 2015, there were various factors at play. It is not so that Nokia was unaware of Apple’s iOS. Nokia had been developing another OS for its phones. Nokia was just unable to respond to Apple’s iPhone due to bureaucratic hurdles internally and the fear of committing errors while advancing among the middle level management. (Researchgate). The organisation structure developed through the years was such that the information did not move freely and timely in a phase when the competition was armed with disruptive tech. This paralysed the decision making process. There was also a power struggle in the top management which left the middle management team directionless. With these factors hammering internally, Nokia couldn’t counter the threat from Apple and other Smart Phone manufacturers. Which resulted in sizeable drop in the market share and strain on companies finances which further led to layoffs and ultimately selling the division to Microsoft.

Identifying the weak links and responding to changes in external and internal business environment is critical and if done correctly can make the business a market leader or even pull your business out of a downward spiral.