Perhaps all of the 2020 Vision and Strategic Plans that I’ve been seeing in development for the past 5 years will be coming to fruition exactly as planned this year, and perhaps not. But if you want to fundamentally transform your business or are already in the process, this article may be useful to you. The full version for Forbes is available is available
“Transformation” may be the most overused term in business today, but a majority of so-called transformative initiatives are actually subtle changes or simply cost reductions masquerading as revolution.
A true transformation effort can occur when customers buy something that is fundamentally different or of greater value from what has been sold before and pay more for it, or when customers buy the same things, but with easier acquisition efficiency, at lower costs. In both cases, the customer experience must change significantly to be considered “transformative.”
An example of a profitable business transformation occurred at a company called Vology (formerly Network Liquidators). Until 2010, Network Liquidators sold refurbished IT equipment to brokers and resellers. Tightening margins and market shifts made it clear to CEO Barry Shevlin and the leadership team that the company needed to move in a completely different direction if they wanted to thrive. Network Liquidators went from a discounted product approach, competing largely on price, to become Vology, a company providing managed IT services focused on all facets of customer technology needs, from data centers to security and support. The result has been an increase in revenues generated from services growing from 0% to an expected 50% in 2020, with EBITDA margins doubling in the same time period. That is truly transformative!
Executives who truly want to transform their business should adhere to the three principles I outline in the complete version of
this article published by Forbes