Business transformation is the fundamental change to the way a business operates, whether that be moving into a new market or operating in a new way It is an approach that attempts to align an organisation's activities relating to people, process and technology

Technology

Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...

 more closely with its business

Business

A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 strategy

Strategic management

Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments...

 and vision

Strategic planning

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues...

. This fundamental change aims to meet long-term objectives.

Business transformation is achieved by aligning the areas of people, process and technology to achieve significant change, eg. such as (for example) 50% increased revenue or 25% improved customer satisfaction or a 20% cut in costs as seen in the BBC's transformation programme Delivering Quality First.

It can be defined as:

• changing appearance - by improving services to customers
• changing shape – by review and reappraisal of what a business should do, by working with partners and by making better use of all types of resources
• changing form – by improving the way the business works, and embracing new organisational structures, skills, processes and technology