What is the meaning of enterprise transformation

Enterprises in order to adapt to the pace of reform, to further realize the transition from a planned economy to a market economy, the original state-owned enterprises to the transformation of joint-stock enterprises, is the transformation of enterprises.

Small and medium-sized enterprises in the development of many new problems, new contradictions, some enterprises also appeared in the production and operation difficulties, these are inevitable phenomena in the process of transformation and upgrading. It is necessary to seize the opportunity to make full use of macro-policy, micro-development of the formation of the "push" mechanism, in the adjustment to enhance the promotion of small and medium-sized enterprises transformation and upgrading.

Adjustment of industrial structure is an important part of the realization of the transformation and upgrading of enterprises.

One is to develop and cultivate a number of basic and emerging industries. Continue to expand and strengthen the five leading industries, vigorously develop the equipment manufacturing industry, accelerate the development of high-tech industries, and explore the development of headquarters economy, building economy, virtual business.

The second is to transform and upgrade a number of traditional industries. Accelerate the construction of the four centers of commerce, finance, logistics, exhibition, etc., take the development of modern service industry as the strategic focus of industrial restructuring, modern service industry to enhance the manufacturing industry, to form a good situation of interaction between industry and trade.

Expanded:

Drivers

1. New Paths to Profitability

Many companies in the electronics, automotive, and chemical industries have transformed for this reason; having reached a certain point in terms of market share and company size, companies have found that their return on profits, and the value of their shares, is unsatisfactory. These companies, often choose to shed low-cost products in favor of innovative, differentiated products or focus on certain fast-growing markets.

2. Responding to Market Changes

With the reversal of supply and demand in the market, the entry of a large number of foreign giants into the market or the emergence of new business models, companies inevitably have to join in the fierce competition for costs, and at the same time have to differentiate their products based on a clear delineation of customer needs. This is more common in the retail and intermediary services industries.

3, mergers and acquisitions and reorganization

After mergers and acquisitions and reorganization of the entire company's operations to achieve smooth integration, is a very challenging work. Once the implementation of poor, often "institutional paralysis", so that valuable customers and good employees to lose trust and patience. At this point, it is necessary to implement organizational redesign and business process re-engineering.

4, enhance the vitality of the enterprise

Many small and medium-sized enterprises will encounter such a situation: although the senior management constantly emphasize the new vision, but always stay in the language, can not be transformed into practical action. How to make the enterprise's strategy y rooted in people's hearts and retain good talents has become an important part of the transformation of these enterprises.

Baidu Encyclopedia-Enterprise Transformation