Business Transformation in the Philippines and How it Empowers Companies

Micro, small, and medium enterprises (MSMEs) need to undergo business transformation that empowers them to innovate and leverage digital technologies. They represent 99.52% of all businesses in the country and serve as a significant source of employment, providing over 60% of the total jobs in the country. Without a doubt, their contribution to the country’s economic growth and stability is invaluable.

The COVID-19 pandemic and the current economic instability has brought unprecedented challenges and opportunities for micro, small, and medium enterprises (MSMEs). These disturbances disproportionately affect this sector, exposing its vulnerabilities and gaps in digitalization. If a business wants to survive and thrive, it must transform its business and improve digitalization to cope with the stresses and demands of the post pandemic market.

To understand how business transformation in the Philippines and how it empowers companies, we need to first distinguish it from digital transformation and explore their interrelationship.

Business transformation refers to a shift in how a business is conducted, be it changing its processes, tools, culture, strategy, and goals. Digital transformation is about changing the way the digital tools and platforms are used to conduct business, such as its systems, applications, data, and customer interfaces. Digital transformation is a subset of business transformation, as it involves aspects of business change.

In today’s rapidly evolving world, digital transformation is often a key enabler and driver of business transformation, as it offers opportunities for innovation, efficiency, competitiveness, and growth. Digital transformation involves not only adopting new technologies, but also creating environments where businesses can leverage innovation to drive positive business outcomes.

What makes digital transformation crucial for MSMEs?

Digital transformation offers several benefits for MSMEs, such as:

Automating the majority of repetitive tasks
Enhancing customer experience and service delivery
Expanding market reach and access by participating in global and online markets
Increasing competitiveness and innovation by using new tools and services

How are MSMEs performing in digital transformation?

According to a 2020 baseline survey on the business transformation of MSMEs in the Philippines conducted by DTI, most MSMEs still need to build their capacities to digitize their business operations. The survey found that only 26% of MSMEs have a website, 46% have a social media account, 12% use e-commerce platforms, and 9% use digital payments. Moreover, MSMEs cited they need to train their staff on the following digital related subjects:finance, marketing, content management, and the basics of e-commerce.

The survey also revealed that despite being a country with heavy internet usage and high social media consumption, the Philippines is still trailing behind in the adoption of technology compared to its regional neighbors. This relatively poor performance may be attributed to the country’s inadequate digital infrastructure, organizations not utilizing digital payments and online platforms, and bureaucratic restrictions hindering the efficiency and effectiveness of the country’s logistics systems.

What obstacles and opportunities for companies undergoing a digital transformation?

Some of the key challenges that MSMEs face in digital transformation are:

– Consistency and speed of internet connectivity: MSMEs rely heavily on telecommunications service providers for their online operations. If the Philippines wants to improve its internet connectivity, then it should look into how neighboring countries like Malaysia, Singapore, and Thailand implement their services consistently.

– Need for budget and investment: MSMEs need to allocate resources for acquiring digital tools and equipment, upgrading their systems and processes, training their staff, and complying with regulatory requirements.

– Lack of technologically trained talents: MSMEs need to hire or develop skilled workers who can manage their digital operations and implement their digital strategies.

MSMEs can look into these solutions to address the challenges with regards to digital transformation.

– Improving digital infrastructure: More investment into the technology and hardware used by ICT companies in the Philippines should be made to make it more affordable and consistent. Government must also review and rewrite regulations and policies to support the development of ICT infrastructure and services.

– Providing financial support: The government needs to provide more financial assistance and incentives for MSMEs to access digital technologies and platforms. It also needs to encourage more diversified financing instruments from banks and other institutions that cater to the needs of MSMEs.

– Enhancing skills development: The government needs to provide more training programs and online resources for MSMEs to enhance their digital and entrepreneurial competencies. A collaborative environment between MSMEs, academia, research institutions, and other stakeholders is needed to develop specific tools that address specific problems here in the Philippines.

Digital transformation is no longer an option but a necessity for MSMEs in the Philippines. By embracing innovation and digitalization, MSMEs can improve their performance, competitiveness, resilience, and growth in the new normal.

Innovation is crucial for business success in today’s rapidly changing world. That’s why we are here to support you. We are a consulting firm with a team of experts who specialize in digital transformation and business transformation in the Philippines that empowers companies.

Whether you want to create or improve your online presence, e-commerce platform, digital systems, or staff skills, we can help you make it happen. Get in touch with us today and let us help you prepare your business for the next level.

Unlocking Success in Digital Transformation

Digital transformations are complex and challenging to implement successfully, even more so than traditional change efforts. Many companies are currently pursuing some form of change to leverage emerging trends or simply stay competitive. In fact, over 80% of organizations have failed with only 20% succeeding on such endeavors.

The most successful transformations are those that leverage technology to drive meaningful change, differentiating them from other change efforts. Here are 5 factors that can improve the chances of success.

1. Having digital-savvy leaders in place is crucial. Leaders who are knowledgeable about technology can steer the organization towards the right changes, ensuring that the transformation aligns with business objectives.

2. Building capabilities for the future workforce is equally important. Equipping employees with the right skills and training is critical for long-term success.

3. Empowering people to work in new ways is essential. This means enabling employees to take advantage of new technologies and work practices to increase efficiency and productivity.

4. Upgrading day-to-day tools with digital capabilities can unlock new efficiencies, reduce costs, and improve overall performance.

5. Effective communication is essential. Frequent communication through traditional and digital methods can keep stakeholders informed and engaged throughout the transformation journey.

Learning and adapting strategies from success stories can better insure your business transformation’s success. It’s time for organizations to reimagine their operations, leveraging the latest technologies to drive meaningful change and remain competitive.

Defining Business Transformation and How it Maximizes Business Efficiency

In need of a big change in how your business runs? Dive in this article titled Defining Business Transformation and How it Maximizes Business Efficiency.

Going through a business transformation means making changes that will boost your efficiency and help you achieve your goals and vision. These changes aim to maximize your business’ efficiency which can involve transforming your processes, reevaluating your strategies, or optimizing your systems in order to better align with your business goals and vision.

This article will provide valuable insights and information on what business transformation is and how it can help maximize business efficiency.

Why Do Businesses Need to Undergo Transformation?

There are many reasons why a business might consider a transformation, such as the adoption of new technologies, changes in the market, low profits and turnover, or a merger or acquisition. This huge undertaking requires a lot of planning and hard work, and it can be tough because of many reasons which we’ve outlined below.

Resistance to change: Employees may resist changes to established processes and ways of working, which can make it difficult to get buy-in and support for transformation.
Uncertainty: The unknown or uncertain outcomes of the transformation process may cause anxiety and hesitation among employees.
Unfamiliar with New Technologies: It may be hard for organizations to use new technologies and tools if they don’t know how they work or don’t have the money and people to make them work well.
Managing multiple stakeholders: Transformation often involves managing the expectations and interests of multiple stakeholders, including customers, employees, shareholders, and regulators, which can be difficult to balance.
Complexity: Business transformation often involves significant changes to a company’s operations, structures, and strategies, which can be complex and require careful planning and execution.
Time and resources: It takes a lot of time and resources to change how a business runs and operates especially if it isn’t used to changes. A business won’t succeed unless they spend some time, train and others, and use the necessary resources to make the change.

Changing your business requires its leaders and movers to learn more about it and what it involves. That means understanding the processes, the tools, and the challenges they might face as they transition.

What is Business Transformation?

Business transformation can involve changing how a company functions, how it structures itself, and how it makes its plans to achieve its objectives. A business can choose to undergo a business transformation due to different things, like new markets, new technologies, or new rules.

This transformation can be driven by different reasons, including market changes, technological advances, and regulatory changes. Usually, it is caused by internal organizational needs or external forces. Additionally, the pace or speed of how a company changes over a period of time can vary; it could take a long while or change in an instant especially if it needs to respond to a crisis.

According to a typology developed by the Harvard Business Review, there are four main types of business transformation depending on the speed of how it happens: slow-motion, sprinted, negotiated, and imposed.

Slow-Motion Transformations

Slow-motion transformation refers to initiatives introduced by organizational leaders with a long timeline for implementation. Examples include cultural changes and corporate turnarounds. The managerial challenge in this type of transformation is to keep focused on the direction and target of the change, which requires a long-term view and patience.

Kodak faced a major challenge in the 2010s as it had to adapt to the digital imaging market. The adaptation required significant operational changes, such as developing new products and adopting new technologies. The transformation was gradual and complex, and it is still in progress.

Toyota also underwent a slow transformation in recent years as it aimed to enhance its operational efficiency and competitiveness. The transformation involved changes to its manufacturing processes, supply chain, and product development strategies, and it is still ongoing.

Sprinted Transformation

Sprinted transformation, on the other hand, is characterized by an urgent challenge to the status quo and is introduced in response to internal needs. Examples include sudden corporate restructuring or the introduction of a new strategic initiative. The managerial challenge in this type of transformation is to build a powerful narrative to create the needed energy and motivation for change.

A famous example would be Facebook’s sudden transformation into Meta, to cater to its growing augmented and virtual reality focus. This sprinted transformation involved a swift shift in focus, with all Facebook and Instagram employees being told to apply for new positions in the emerging AR and VR teams.

During the 2020 pandemic, Starbucks underwent a sprinted transformation to shift its focus from in-store dining to drive-thru and delivery. The transformation involved rapid changes to the company’s operations, including the implementation of new technologies and processes to enable contactless payment and delivery.

Negotiated Transformation

Negotiated transformation is typically undertaken in response to external demands, such as regulatory efforts. It is characterized by a slow pace and extensive stakeholder management efforts. An example of this type of transformation is the sustainability transformation taking place at many companies today in response to increasing pressure from regulators and consumers to reduce environmental impact. The managerial challenge in negotiated transformation is to balance the interests of different stakeholders while also ensuring the desired direction is achieved.

In 2021, Wells Fargo had to change its business since it went into an unforeseen financial crisis. The regulators wanted Wells Fargo to manage its risks better and avoid the mistakes that caused the financial crisis. Wells Fargo worked with the regulators and made the changes they asked for. This helped Wells Fargo recover, surviving the 2021 crisis caused by the pandemic with better risk management techniques and tools in place.

Imposed Transformation

Imposed transformation, as the name suggests, is imposed on the organization by external forces, such as a merger, acquisition or bankruptcy, and is characterized by a fast pace. The managerial challenge in this type of transformation is to manage the integration process and ensure that the desired outcomes are achieved.

Lehman Brothers was a big financial company that went bankrupt in 2008 because of the financial crisis, leaking money, and piling debt. The company tried to fix its problems and save its business. It sold some of its things, changed how it managed its money, and tried to control its risks better.

Despite their best efforts, Lehman Brothers failed to avert the company’s bankruptcy. They filed for bankruptcy in September 2008, resulting in one of the most significant and prominent collapses in the financial industry’s history. The imposed transformation at Lehman Brothers was a dramatic and drastic measure that ultimately proved unsuccessful in saving the company.

Business Transformation Approaches

Businesses can use different methods to change and improve their performance and reach their goals.

Some of these methods are:

Holistic, cross-functional approach: This involves collaboration and buy-in from all levels of the organization, and it requires clear communication and strong leadership to ensure that all stakeholders are aligned and committed to the transformation process.

Agile approach: This involves using agile methodologies, such as Scrum, to manage the transformation process. Agile approaches focus on rapid iteration and continuous delivery, and they are well-suited to transformations that involve complex, uncertain environments.

Lean approach: This involves using lean principles, such as continuous improvement and waste reduction, to drive the transformation process. Lean approaches focus on maximizing value and minimizing waste, and they can be effective in transformations that involve process improvements.

Design thinking approach: This involves using design thinking principles, such as empathy, experimentation, and prototyping, to drive the transformation process. Design thinking approaches focus on understanding customer needs and creating solutions that meet those needs, and they can be effective in transformations that involve product or service innovation.

These approaches thrive in specific business needs, goals, and the nature of the business transformation itself. All of them can increase a business’ efficiency by improving facets of its structure, introducing new principles, and practicing new methodologies. Businesses may want to ruminate about what they want and need before picking the transformation method that fits them best.

How Business Transformation Increase Business’ Efficiency

Businesses want to be more efficient when they change and improve. They can do many things to make this happen, such as changing how they work and organize themselves, using new technologies and tools, to the implementation of new strategies and initiatives.

Business Transformation Processes

There are various ways that businesses can optimize their processes as part of a transformation ordeal. This includes some of the processes we’ve listed below. Businesses can make more informed decisions on how to improve efficiency by familiarizing these different processes.

Streamlining processes: Businesses can review and optimize their processes to eliminate waste and inefficiencies, streamlining the way work is done and improving productivity.
Automating tasks: Businesses can use new technologies and tools to automate mundane and repetitive tasks and processes. Employees can use the freed-up time on activities that add value to the business.
Adopting new technologies: Artificial intelligence and machine learning boosts efficiency and reduce the time and resources needed to complete repetitive tasks.
Redesigning organizational structures: Businesses can restructure their organization to better match their goals and objectives. If businesses can eliminate bottlenecks and inefficiencies, then communication and decision-making can be improved.
Improving communication and collaboration: Businesses can foster better communication and collaboration among teams and departments. This can reduce wasted effort and improve the exchange of information and ideas.
Adopting agile methodologies: Agile methods such as Scrum can improve a business’ adaptability to change and deliver value faster and more effectively, thanks to its unobtrusive systems.
Leveraging data and analytics: Data and analytics can help business leaders make smarter decisions and identify areas for improvement in their operations and processes.

How Does Business Transformation Maximize Efficiency?

Business transformation can deliver many benefits, such as higher efficiency, reduced expenses, superior customer experience, increased competitiveness, and more agility. These changes are essential to keep up with changing market conditions, customer needs, and technological advances.

Improved efficiency: Business transformation can help streamline processes, eliminate waste, and reduce the time and resources required to complete tasks, leading to improved efficiency and productivity.
Reduced costs: By streamlining processes and eliminating waste, businesses can reduce costs and improve profitability.
Improved customer experience: Business transformation can help businesses better understand and meet the needs of their customers, leading to improved customer satisfaction and loyalty.
Enhanced competitiveness: Business transformation can help businesses deal with changing market conditions and employ new technologies and strategies to strengthen their competitiveness and prepare for future success.
Increased agility: Business transformation can help businesses respond more quickly to changing circumstances and take advantage of new opportunities as they arise.
Improved employee engagement: By involving employees in the transformation process and creating a culture of continuous improvement, businesses can improve employee engagement and retention.
Enhanced reputation: Successful business transformation can enhance a company’s reputation and credibility, attracting new customers and partners.
Improved sustainability: Business transformation can help businesses adopt more sustainable practices and reduce their environmental impact.
Improved innovation: By embracing change and encouraging a culture of innovation, businesses can drive new ideas and solutions that can lead to growth and success.
Greater scalability: Business transformation can help businesses scale their operations and expand into new markets, leading to increased growth and revenue.

In today’s dynamic and competitive business world, you need to transform your business to stay ahead of the curve. Business transformation means making significant changes to your operations, structures, and strategies to enhance your performance and competitiveness. This can be vital for any organization that wants to remain competitive and succeed in today’s dynamic business environment.

Leads Resources can help you create a tailored strategy for optimizing your operations, structures, and strategies. By partnering with us, you can set your company up for success and improve your efficiency through business transformation.

Our website offers more articles and information but if that’s not enough feel free to book a consultation with our team today. Whether it be about business transformation or other business needs, our team of skilled advisors are available to assist you.

Want to know more about Business Transformation? Here are our resources:

Business Transformation Typology by the Harvard Business Review https://hbr.org/2022/06/4-types-of-business-transformation
Toyota’s Business Transformation https://www.youtube.com/watch?v=cY_Old9bLhY
AirBNB’s Business Transformation https://www.youtube.com/watch?v=75J8Xd2tvGY
Wellsfargo Business Transformation https://www.youtube.com/watch?v=Fd1i2XB_cus
Lehman Brother’s Business Transformation https://www.youtube.com/watch?v=BnDbdQa_r38

8 Digital Transformation Trends for Consultants

Consultants must be well-versed in digital transformation tools to remain competitive.<br />

Digital transformation has become a game-changer for businesses across the world, with hybrid work environments and remote communication now the norm. As a result, consultants must be well-versed in digital transformation tools to remain competitive.

In 2023, we expect the following trends disrupting the consulting industry in 2023 and onwards.

Remote Communication and automation tools will continue to thrive.
Tools used to accelerate and automate transactions between consultants, clients, and the market will have higher demand. In-person and onsite transactions will only be considered as the last option especially when remote and other automation tools are available.

Businesses Adopting a Lean Digital Transformation Strategy
Efficient businesses with lean strategic, tactical, and operational improvements of organizations create more value for their customers with less cost. Lean offers a more efficient organization with larger growth and greater innovation even during a recession.

Increased Demand for Expertise In Niche Areas
The shift in focus from high-value short-term projects to longer-term strategy development makes the role of specialists more valuable and vital. They are especially in high demand in workplaces requiring a technical approach to operations and culture.

Combine Your Niche With the Right Digital Solutions
When technology is used correctly, it can help companies achieve their business goals and deliver measurable results. Leveraging the benefits of digital transformation requires creating a strategy, getting the input of stakeholders, and deeply understanding business needs.

Clients’ ROI is often made with Sustained Margins
The promise of Sustainable Return on Investment (S-ROI) is a rigorous financially oriented framework that combines well-established analytical techniques with a proven approach to collaboration and dialog. S-ROI identifies and weighs critical potential impacts of a proposal, and engages stakeholders in a process of non-adversarial analysis and optimization.

Increased Demand For Automation and Technical Consulting Firms
Automated decision-making, predictive analytics, machine learning, and codeless software will play major parts in creating strategy, alongside the need to streamline and automate repetitive administrative tasks in order to improve productivity and efficiency.

Clients Will Seek Consulting Advice To Focus On Core Vs Non-Core Activities
Organizations are having a fundamental rethink of the core/non-core issue, and that will have profound consequences for consultants and consulting firms in the future. “Core” activities are generally defined as strategic tasks that improve customer value and drive profits. “Non-core” activities are generally defined as day-to-day routine tasks that add little value and are not a profit center.
The reason behind this shift to core activities is largely technology-driven: in the past, technology was up against the corporate wall, it was generally considered a non-core activity, handed over to third parties to deliver a better service for less. But today, technology is more likely than any other factor to be a core activity. This means that organizations will increasingly rely on third parties to do core work.

Digital Transformation for Core Consulting Activities
To remain competitive, consultants must develop skills to deal with and adapt to the fast-evolving digital and technology market. As more and more companies seek digital transformation, today’s successful consultants excel at highly adopted technological implementation – from project start to finish.

In 2023, we expect to see an increased demand for SMEs, lean digital transformation, niche expertise, digital solutions, ROI, strategic consulting, and a shift in focus from non-core to core activities. Consultants who can adapt to these trends and leverage technology to provide value to their clients will be at the forefront of the industry.