In management, it has been said that Business Transformation involves making fundamental changes in how business is conducted in order to help cope with shifts in the market environment. However, this is a relatively narrow definition that overlooks other reasons and ignores other rationales.
A better understanding is achieved by considering that Transformation is generally a response to two things. First, there are underlying problems or causes of organisational pain that need to be addressed. They have to be properly understood but nevertheless, they are a key component. Secondly, there is a desire by the top management and other senior stakeholders to use the opportunity of addressing these causes in ways that fundamentally alter the paradigm of the organisation.