What Does Business Transformation Mean?

Forbes - Apr 2nd, 2025
Open on Forbes

A recent study by SAP and Oxford Economics has highlighted the pressing need for organizations to establish a clear and unified understanding of business transformation. According to the study, two-thirds of respondents find the term 'business transformation' often misunderstood, and 45% state it is not even part of their organization's vocabulary. Despite the evolving nature of its definition, 96% of respondents agreed on a common understanding proposed in the study: business transformation involves a strategic evolution of a business's operating model across dimensions like people, processes, applications, and data. This clarity is essential for aligning organizational efforts towards common strategic goals, leading to a successful transformation journey.

The significance of achieving consensus on what business transformation means cannot be overstated. As the business landscape continues to change rapidly, developing the ability to transform is crucial for remaining competitive and agile. Business transformation management, which includes aligning goals and strategies, securing employee buy-in, and enhancing digital adoption, helps organizations navigate changes effectively. By focusing on core pillars such as people, processes, applications, and data, companies can improve operational efficiency and productivity. Cultivating transformation skills prepares organizations to thrive amid change, unlocking new value and ensuring sustainable growth.

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RATING

6.6
Fair Story
Consider it well-founded

The article provides a comprehensive overview of business transformation, emphasizing the importance of achieving a shared understanding and alignment within organizations. It is well-written and timely, addressing a topic of significant interest to business leaders and professionals. However, the article's reliance on a single study without direct access or detailed methodology limits its accuracy and transparency. Additionally, the lack of diverse perspectives and potential downsides creates a somewhat one-sided narrative. While the article is informative and engaging, it could benefit from more balanced discussions, additional sources, and greater transparency to enhance its credibility and impact.

RATING DETAILS

7
Accuracy

The story provides a comprehensive overview of business transformation, citing a study by SAP and Oxford Economics. It claims that a significant percentage of respondents find the term 'business transformation' misunderstood, and that achieving a shared understanding is essential for strategic alignment. These claims are supported by the cited study, although the story does not provide direct access to the study for verification. Additionally, the definition of business transformation and its distinction from digital transformation are broadly accurate but lack specific references to external sources or studies that could enhance verifiability. The story's accuracy could be improved by directly linking to the full study and providing more detailed data or case studies to support its claims.

6
Balance

The article primarily presents a positive view of business transformation, emphasizing its necessity for achieving strategic goals and maintaining competitiveness. While it acknowledges the challenges of achieving consensus on the definition of business transformation, it does not explore potential negative aspects or failures of transformation initiatives. The lack of diverse perspectives, such as those from organizations that have struggled with transformation, creates a somewhat one-sided narrative. Including a broader range of viewpoints or expert opinions could provide a more balanced discussion of the topic.

8
Clarity

The article is generally well-written and structured, with clear language and a logical flow of information. It effectively explains complex concepts like business transformation and digital transformation in an accessible manner. The tone is neutral and informative, making the content easy to understand for a general audience. However, the article could benefit from more explicit definitions and examples to enhance comprehension further. Overall, the clarity of the article is strong, with minor room for improvement in providing more detailed explanations.

7
Source quality

The article references a study conducted by SAP and Oxford Economics, which are reputable entities in the field of business and economics. However, the article does not provide direct links to the study or additional sources, which limits the ability to assess the full quality and reliability of the information presented. While the organizations involved in the study are credible, the reliance on a single study without corroborating sources may affect the depth of the analysis. Including a wider variety of sources or expert opinions could enhance the article's credibility.

5
Transparency

The article lacks transparency in terms of providing direct access to the study it references, which is crucial for verifying the claims made. It does not disclose the methodology of the SAP and Oxford Economics study or provide any context about the sample size or demographics of the respondents. Additionally, potential conflicts of interest, such as SAP's vested interest in promoting business transformation, are not addressed. Greater transparency regarding the basis of the claims and any potential biases would improve the article's trustworthiness.

Sources

  1. https://news.sap.com/uk/2021/06/grow-rise-with-sap-and-fly-how-were-helping-fast-growth-midmarket-companies-to-transform/
  2. http://www.ilanet.com.br/cgi-local/portal/bin/view/Ilanet/WebIndex
  3. https://www.seidor.com/en-gb/blog/sap-business-one-wins-forbes-erp-manufacturing-award
  4. https://arquiconsult.com/en/forbes-evaluates-d365-bc-as-leading-cloud-erp-for-smb/
  5. https://www.bpxglobal.com/en/news/bpx-was-awarded-the-prestigious-forbes-diamonds-2025-prize/