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Why Do Companies Pursue a Business Transformation?

Typically, companies pursue Large Scale Business Transformation when they have determined that their existing Business Model is not sustainable. They require large scale changes to their

  • Internal Operating Model
  • Customer Relationship Model

Most Companies are Reacting to External and Internal Pressures

  • External
    - Shareholder expectations
    - Trade concentration
    - Industry consolidation
    - E-Business
    - Mature markets
    - Parallel Imports
    - Free trade zones
  • Internal
    - Sales Growth
    - Profit Margin
    - Working Capital
    - Fixed Capital
    - Cost of Capital
    - Tax Rate

Business benefit of a business transformation

  • The majority of the benefits come from business operating model changes, not process improvement or technology implementation
     - Cross-country optimization
     - Shared service centers
     - Exploiting economies of scale
  • However, process improvement and technology implementation are absolutely necessary
     - To enable the business operating model changes
     - To create a sustainable solution
  • At Lodestone we have conducted a multitude of assignments in different industries to help clients design and implement full scale business transformations or elements thereof