Business transformation

Second, 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.

As such, a business transformation project is likely to include any number of change management projects, each focused on an individual process, system, technology, team or department.

"[3] The need for business transformation may be caused by external changes in the market such as an organisation's products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense.

This management approach may also incorporate business process reengineering (BPR).

Other methods like Lean or Six Sigma are rooted in incremental improvement rather than paradigm shifts in the way things are done: Business transformation is achieved by one or more of: realigning the way staff work, how the organisation is structured, the core product or service portfolio of the business and how technology is used.