What is business transformation?
A business may undergo a transformation for a variety of reasons. It could be the result of new technology, market shifts, low profit and turnover resulting in cost cutting, or a merger and acquisition. These factors are critical for a company's success, necessitating a change in the business ecosystem.
Business transformation is a change management strategy that encompasses any shift, realignment, or adjustment in a company's operations. The goal is to improve the company's alignment with its business strategy and vision by changing processes, people, or systems (technology) in accordance to the type of change being brought over.
The types of business transformation
Business transformation is divided into four categories: business process, business model, domain, and cultural/organizational.
Business Process Transformation
Businesses nowadays are focusing a lot on business processes. Data, analytics, APIs, machine learning, and other new technologies provide businesses with useful new opportunities to reinvent processes. Process transformation may add tremendous value, and technology adoption in many areas is quickly becoming a must.
Business Model Transformation
Businesses are in persuasion of digital technologies in order to change traditional business paradigms. Business process transformation focusses on a business, whereas, business model transformations focus on the fundamental building blocks of a business answering the question of how value is delivered in a company. Corporations that achieve business model transformation open up huge new prospects for growth in the market.
Domain transformation covers the portion where a business can entirely change its business goals with respect to its focus in the market. Technological advances are redefining products and services. Many executives are unaware of the very real potential for these new technologies to open up entirely new markets for their firms and it is frequently this type of transformation that provides the most opportunity to generate new value.
A very long and unending digital transformation requires the employees to work together with the right mindset to cope up with the digital world. Certified B2B enterprises recognize that digital requires agile workflows, more interests in testing and learning, decentralized decision-making, and a greater reliance on business ecosystems.
Factors influencing business transformation
Some of the major factors influencing business transformation are
New technologies, implementations and integrations are a must to achieve business growth and a good business transformation strategy is essential if that path is summoned.
Every organization has the desire to drive efficiency. However, when the existing business processes don’t drive efficiency, then there is a need to change the business strategy.
Merger or acquisition
When two or more organizations with different approaches and cultures come to an agreement to merge, there might be great difficulty in adapting to the working environments. Hence business transformation is key here.
A change inside an organization to cut outgoings, whether in specific areas or across the board, may be triggered by high expenditures or a need for cost savings.
High customer expectations
Customers are the focal point for any business. If it comes to the table that there is no customer satisfaction, or that the customers have high expectations from the business because of the previous customer experience, then there is a necessity to undergo business transformation.
SAP business transformation
For companies to turn into SAP intelligent enterprises, there are a lot of modifications that must be implemented on a regular basis. To be more explicit, the existing SAP system must be regularly updated and upgraded with new implementations and integrations. Only then an organization or business will be able to stay current and compete with competitors who are continually installing implementations.
These implementations might be minor, such as custom updates, or major, such as an SAP ECC to SAP S/4HANA transformation project. In any event, business transformation is essential for each integrated release to ensure that all business processes and functions in the previously available SAP system are compatible with the new integrations.
But this process of business transformation is an extremely tedious process, which raises the question “Is there any way to eliminate the tedious work in this business transformation journey?
To answer this question, SAP introduced the business transformation as a service model as part of the RISE with SAP initiative. Many people mistake RISE with SAP for a single product. It's essentially a collection of products presented by SAP as one holistic offering to assist organizations to undergo effective business transformation. They include
1) SAP S/4HANA Cloud Suite
2) System Hosting Options
3) Business Technology Platform (BTP)
4) SAP Business Network Starter Pack and
5) Embedded Tools and Services
It provides a holistic transformation to an intelligent enterprise on your terms and on your schedule. With a simplified engagement and guided route through your business transformation, you can eliminate complexity. With the accelerated value provided by RISE with SAP and SAP's powerful partner ecosystem, you can transform every element of your organization. SAP will provide quick time to value and the ability to thrive in the face of change, all without requiring large upfront investments. Click HERE If you wish to know more about RISE with SAP.
KTern.AI for RISE with SAP
To accelerate the RISE with SAP business transformation with data driven hyper automation, KTern.AI was brought into existence. KTern.AI is an all in one product suite which is built for SAP digital transformations. It is a Digital Transformation as a Service (DXaaS) product which plays an important role in Business transformation. It is mainly designed to smoothen the transition for complex projects like SAP ECC to S/4HANA conversion projects, RISE with SAP projects, or any release for that matter, with the help of its five digital streams. These five digital streams address the five phases
1) Assess – Achieve your risk free SAP transformations, driven by rapid assessment
2) Govern – Ensure robust governance in your SAP Transformation projects
3) Orchestrate – Drive your SAP process orchestration with integrity and tribal knowledge base
4) Test – Ensure your business reliability data driven, governed SAP testing
5) Optimize – Save your costs and resources with streamlined SAP DevOps and Business Ops.
These five phases work together to help firms accelerate their RISE with SAP activities. SAP intelligent enterprises may confidently embark on their business transformation with KTern.AI tribal knowledge base, non-invasive, and integrity-driven experience. There are three pillars of KTern.AI that play a major role in Business Transformation. They are Digital Process, Digital Labs, and Digital Mines.
RISE with SAP for process governance
KTern. AI Digital Process is primarily focused on better modelling and simulation of your business processes in response to changes, thereby enhancing your company's efficiency. It consists of all the business processes that have been recorded as part of the system. It adds a lot of value to the table such as
1) Streamlined tracking and monitoring of Business Process activation, implementation, and orchestration of the enterprise operations
2) Analytical wizards for custom process profiling by objects, stakeholders, application, scope of optimization, impact and custom to standard process adaptation insights in S/4HANA
3) Enablement advisory with automated training scenario and stakeholder recommendations in view of the process transformation
It has a number of features which helps in carrying out the RISE with SAP transformations, one being the process cockpit. Here you have a list of all the business processes where you can reimagine your processes in a holistic way and steer your transformation programs better. There is also a process modeler where you can change the workflow of your business processes for better performance.
You can also perform complexity analysis for the RISE with SAP projects. KTern.AI does the analysis of the entire system and finds out the parameters that will pose as a risk during your transformation. So the user can know what will happen if he/she chooses any of the Digital transformation approach and can handle the risk much better.
RISE with SAP for process testing
In addition, KTern.AI Digital Process integrates with two of its other streams, Digital Labs and Digital Mines, to research and appropriately endure the business transformation path.
Digital Labs is essentially a repository that houses all of the test cases for each business process. It is in charge of managing the entire test lifecycle. It adds value in a variety of ways.
1) Industry best practices aligned test lifecycle, to minimalize the testing effort
2) Transparent, organized, collaboration enriched hierarchical signoff wizards for test phase closures and approvals
3) Continuous testing for SAP product upgrades designed specifically for rapid, disciplined testing in SAP digital transformation journey
It is common knowledge that testing all test cases related to each business process is critical, especially during an integration or implementation project. These test cases are manually generated, manually tested for issues and risks, and manually repaired in other circumstances.
However, with the assistance of KTern.AI Digital Labs the entire scenario is completely reimagined. Without the need for manual test case generation, KTern.AI Digital Labs generates all possible test cases to be tested by scanning the entire system. This is one of its primary UVPs. All the RISE with SAP initiatives for complete business transformation may be readily streamlined with the support of the value supplied by Digital Labs.
RISE with SAP for process change impact mining
Speaking of Digital mines, it provides its value in
1. Value engineering of the business process and optimization insights to run streamlined enterprise operations
2. Intelligent SAP DevOps for accelerated and safe release management.
3. Business process enrichment suggestions with automated optimization bots for running streamlined operations with improved customer and employee experience
With the support of its autonomous enterprise release impact, also known as AERI, it plays a key role in business transformation for RISE with SAP. All the business processes and test cases involved are thoroughly scanned with the help of its digital bots prior to a transformation project. This is done to identify the processes and test cases that will be impacted by the release. This is termed as change impact mining.
You can also perform fit gap analysis here. The test cases which are available in the test repository, which might mot be compatible during the transition are called fits. There are always test cases pertaining to certain business processes which might be impacted during the transition, but will not be available as part of the test repository. These test cases are known as gaps. With the help of AERI bots, these new test cases are also generated in this analysis.
Keeping up with the technological advancements
As days, months and years advance, so will the technology, and so will all the factors which influence transforming your business. Although 80% of large-company executives see the need for transformation, only 33% are confident that it can be accomplished in the next five to ten years. According to studies from thought leaders like McKinsey, up to 70% of business and digital transformation initiatives fail. Hence it is highly important for all the SAP led businesses to find the right business transformation strategy.
Are you in search of an efficient way to drive your business transformation? If so, click HERE to schedule a demo with us. Too inquisitive to know more? Contact us and we can answer all your questions!