What are we talking about when we refer to strategy and transformation in large companies?
If we think about the business history of the large company segment, many disruptions have swept away companies that seemed untouchable and solid because they did not know how to or were unable to adapt in time. We talk about strategy and transformation when a large company must redefine its business model to do just that, adapt and remain competitive in its sector. In my experience, in recent years there has been no transformation without the use of technology.
What is the main objective?
The objective, although it may sound straightforward, is to survive. Being competitive, growing in the sector with new models, improving operational efficiency, customer experience and, ultimately, ensuring the long-term sustainability of the business. Today, there is talk of having ‘strategic resilience’, withstanding change and emerging stronger
McKinsey points out that companies that lead well-structured transformation processes increase their EBIT by between 20% and 30% in the first three years.
What are its key components?
For me, everything revolves around three axes: people, processes and business. Transformation usually goes through different stages:
- First, start with a strategic diagnosis to understand the environment, internal evaluation of the operating model, culture and risk analysis.
- Then define a clear vision for the business and its purpose: the capabilities needed to achieve the defined objectives, competitive advantage and capabilities to be developed with your plans.
- From there, the complex part is adapting the organisation, designing an efficient operating model by digitising processes, breaking down silos and aligning teams.
- For all of this, the size of the team and the culture are decisive factors. Cultural transformation, visible leadership, training in new skills and the search for talent to move from PowerPoint to execution.
- None of this can be implemented without the technological infrastructure for digitisation or the integration of AI.
- Finally, prioritisation, measurement and continuous adjustment.
How is this linked to digital transformation?
Today, digitisation is the key mechanism for executing strategy, creating new business models, being competitive in the long term and redesigning processes to make them more efficient.
For example, converting and structuring data well with Big Data to make better decisions, moving repetitive manual processes to automated ones, evolving towards flexible architectures in the Cloud, etc.
All of this will lead to reduced costs, shorter response times, anticipation of consumer behaviour, fewer errors and the unleashing of talent, increasing the company’s productivity.
What role do new technologies and their evolution play in the strategy and transformation of large companies?
They are the key to reinventing these models, enabling them to compete better, make better decisions, adapt sooner and create long-term value.
When we talk about AI, 5G, Edge Computing, Big Data, IoT and cybersecurity, we are talking about the strategic integration of technologies to achieve clear benefits: scalability, speed, adaptability, personalisation and resilience.
