Vendavo-Glossar

Commercial Transformation

What is Commercial Transformation ?

Commercial transformation is the process of making fundamental organizational changes to marketing, sales, and pricing capabilities to provide actionable strategy and focus that drives revenues, increases margin, and grows your business. 

High-performing companies systematically assess their organizational capabilities to allow executives to take meaningful actions to improve results. They regularly identify their own strengths and weaknesses and map them on to their short- and long-term goals. This review process identifies gaps that are the foundational opportunities for transformation and improvement. 

Commercial transformations are large, multi-year, fundamental shifts that organizations undertake to create additional shareholder value. To drive organizational change this dramatic often involves the creation of an office of transformation reporting directly to the CEO. This provides the momentum to drive change to completion. 

Transformations fall into several different categories. The most common are outlined below, but the list is far from exhaustive: 

  • Digital transformation—Using data and technology to unlock hidden value by replacing outdated manual or on-premises applications with cloud services. It also includes leveraging technology to more rapidly design, build, and distribute new offerings themselves. 
  • Business process transformation—Simplifying and automating repetitive process tasks with technology to allow employees to focus on higher-value activities.  
  • Cultural transformation—These are powerful but very difficult for most organizations to implement successfully. Corporate culture evolves organically over many years. The personalities of the leaders, organizational structure, and how people are rewarded, recognized, and disciplined all play a critical role. This extends past messaging to the internal branding of the company. 
  • Organizational transformation—Assessing the reporting structure and staffing levels of all departments. Examining in-house skills and experience, to identify overlap and missing capabilities. Other objectives may include increasing cross-functional coordination, right-sizing the headcount, and simplifying the reporting structure. 
  • Management transformation—Upscaling the management structure by empowering individuals to take on project ownership and at the lowest level possible. This moves decision making to the right place to quickly develop consensus and speed up action across the organization.