Transforming an Enterprise uses the same practices as starting up an Enterprise

The teams are stressed; incidents are multiplying.

Our Baker worries about having made a poor investment.

Starting and Transforming an Enterprise rely on the same mechanisms. If the Baker managed to resolve the difficulties linked to Starting the Enterprise, he is more than capable of resolving those linked to Transforming his Enterprise, in particular to the merger.

The Baker gets his confidence back.

  1. Disruptive Transformation and Enterprise start-ups

    1. Innovation for all Products

      Innovation can concern the elements that make up the Offer (Goods, Information, Services) or the Operation Model.

      • To innovate in Goods, we have to use sciences that affect Goods: physics, electronics, chemistry, energy...
      • To innovate in Information, we have to use IT
      • To innovate in Services, we have to use Process modeling and IT
      • To innovate in the Operation Model, we also have to use Process modeling and IT

      If we want to make enterprises such as Google, Amazon, SalesForce or SAP emerge, we must know how to invest not only in classic engineering sciences, but also in software or Process modeling.

    2. Innovation in the Large Enterprise or in the start-up

      We often compare the large enterprise, which benefits from strong notoriety, a loyal customer base, considerable economies of scale, an international Market and reliable products, to the small, innovative enterprise, which demonstrates its originality but does not have the means to impose itself on the international markets.
      And yet, carrying out a disruptive Transformation in a large enterprise can be just as difficult, even more difficult than starting up an Enterprise.

  2. The same practices are used in the Large Enterprise and in the Start-up

    Whether we carry out a disruptive Transformation within a Large Enterprise or whether we start up a new, innovative Enterprise, we use the same basic practices:

    • Model new Products and Services
    • Choose a Transformation Model
    • Equip ourselves with a Foundation
    • Set up Operation and Transformation Resources
    • Know how to build a financial Model
    1. Know how to create new Product Models

      Whether the innovation is a Product innovation or an Operation Model innovation, we have to know how to build new Models, in particular the associated software.

      The large, innovative enterprises have kept control of the building of their business software: Google, Microsoft, Facebook, Amazon, SalesForce... develop and maintain their own business software, even if they often use commodity software packages to manage their Resources.

      The best software developers are some of the most well-paid employees.

      Small teams made up of excellent experts in Modeling are one of the keys to success.

    2. Choose a Transformation Model

      Before we throw ourselves into the Transformation Project or Enterprise start-up, we have to decide with which Approach and with which Tools we would like to build the Operation Model or Offer Model: we have to choose the Transformation Model.

    3. Equip ourselves with a Foundation

      As explained previously, if we want to have consistency and fluidity between the different Enterprise activities, we need to define an Enterprise Architecture, which is the framework that the different Solutions will fit into. Good Interfaces enable the Solutions to exchange without us having to duplicate the information or re-enter it.
      If we want to build an agile Enterprise, we have to equip ourselves with a Component bank which speeds up the process of Building new Models.
      Enterprise Architecture and Components are part of the Foundation.

    4. Set up Operation and Transformation Resources

      Separate Operations and Transformation: it is a necessary condition for Agility.

    5. Know how to build a financial Model

      see the corresponding scene

  3. What is more difficult in the Enterprise start-up

    1. Find financing

      Unlike the large enterprise, the start-up struggles to find financing because it represents a considerable risk.

    2. Find and convince customers

      The Image and notoriety of the Enterprise start-up is often a handicap in promoting new offers: how can we make people know that we provide an innovative Offer?

    3. Gather all competences together

      Launching a new Offer requires us not only to call on engineering and marketing competences, but also sales, legal, financial, accounting competences... which are available in the large enterprise but are often lacking in the small one.

  4. What is more difficult in the Large Enterprise

    1. Difficulty to innovate

      The governance of Large Enterprises favors continuity, security, the principle of precaution... but stifles innovation: it is difficult to transgress the rules to imagine new value propositions. Even when innovation is present, the road is difficult: the Kodak laboratories had invented digital photography, but the Enterprise floundered because it did not know how to call its traditional Model into question. Innovation is necessary but it is not enough: the Enterprise, and especially its top management, has to take hold of and carry the Transformation to its end.

    2. Change management

      The social body of the Enterprise does not like change, in particular when the Enterprise is prosperous, because change of any kind requires an effort, a calling into question of the hierarchies in place: how do we explain that we have to change Model when the current Model works?
      Even if the Enterprise employees are convinced, we also have to convince the customers and partners who like to keep their habits: see the difficulty that Microsoft has to impose Windows 8.

    3. Migration from the old Model

      Migrating Enterprise information from an old Model to a new one can prove to be extremely complex.

    4. Internal procedures

      The unwieldiness of a large enterprise can be incompatible with fast decision-making.

    5. Self-satisfaction

      The Employees should be proud of their Enterprise. But this pride occasionally borders on self-satisfaction: the fact of belonging to a large and powerful enterprise leads some to ignore the initiatives of others, especially if they are a lot smaller.

    6. Negative notoriety

      Notoriety can be positive or negative; in the second case, it is difficult to get back on one's feet and it is often better to start again from scratch by setting up subsidiaries that have an unsullied image.
      Some Enterprises, like Adidas or Monoprix, have succeeded in transforming and modernizing their image.

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