Why should enterprises carry out strategic transformation?

From the perspective of internal active transformation:

1. The internal motivation of starting a business: continuous pursuit of progress and change, which usually belongs to the active upgrading strategy. As long as entrepreneurs take the initiative to initiate and change earlier than the external environment and faster than their competitors, the success rate is usually relatively higher.

2. Goal-driven: The actual development results of the enterprise can't reach the strategic objectives planned by the company, but actively seek strategic reconstruction and strategic upgrading to ensure that the upgraded strategy can be realized. Usually, the success rate of this strategic upgrade is relatively high.

3.？ Self-adaptive environment-driven: enterprises actively adapt to the strategic upgrade of consumption trends, technical iteration and business logic reconstruction. Usually, the focus of this upgrade is the upgrade of business strategy, and the success rate is relatively high.

4.？ Ability and mechanism drive: when the ability, resources, organization and guarantee mechanism do not match the strategy, the enterprise actively strengthens the strategic realization ability, resource guarantee ability and strategic guarantee mechanism. Although this strategic upgrade is active, it belongs to the strategic upgrade at the level of change. When it comes to change, the success rate is very low.

From the perspective of external passive transformation:

1.？ Product or technology logic changes, forced to upgrade: for example, cars and motorcycles upgraded from petroleum power to new energy power; The manufacturing business is upgraded to automatic manufacturing; Traditional management moves towards digital management and so on. Although this kind of upgrade is forced by the industry environment, enterprises follow up quickly and use scientific system methodology to promote the upgrade, and the success rate is usually higher than the average.

2. Competitors are forced to upgrade passively: both existing competitors and potential competitors take the initiative to launch competitive challenges, thus forcing the company to upgrade its competitive strategy. If there is no very good guarantee mechanism, the success rate is low, and even the company develops from initiative to passivity, which becomes a watershed. This is a very dangerous upgrade situation. Generally speaking, all companies should avoid entering this strategic upgrade scenario.

3. Iterative passive upgrading of business models and consumption trends: for example, the emergence of mobile Internet, big data, cloud computing and 5G technology, the rise of the middle class, and the great changes in the consumption concepts and behaviors of new consumers after the 1990s. If the company's insight into the environment is not keen, it will lead to the backwardness of the company's business model. This backwardness is usually irreversible after reaching a certain order of magnitude, and the success rate of this strategic upgrade is low.

Many enterprises attach great importance to strategic management, but it is a pity that the later landing guarantee, upgrading ability and mechanism construction ability failed to keep up, leading to strategic failure. By analyzing a large number of successful and failed strategic upgrading cases of Chinese and foreign enterprises, this paper briefly analyzes how enterprises use scientific methodology and system theory to upgrade their strategies.

1.？ First of all, we should have a scientific and systematic strategic management theory. We can take strategic management masters and strategic management theory and methods as the theoretical basis and tools for strategic management and upgrading of manufacturing enterprises. You can search Ansoff, Chandler, Michael Porter, Peter Senge, Schumpeter, Drucker and other related books for learning. These are outstanding strategic management scientists.

2.？ Secondly, it is necessary to upgrade the strategic management system and its guarantee system. We have scientific and systematic strategic theories and tools to guide strategic upgrading. Then there is the question of upgrading or something. Strategic upgrading usually includes two parts: one is the strategy itself, namely business insight and strategic planning, such as product strategy, marketing strategy and manufacturing strategy; The other part is the management system to ensure the strategic landing, which is the key to the problem, that is, how to ensure the strategic landing and realize the success of strategic upgrading. The lack of the latter is the reason why the final strategic upgrade of most enterprises is unsuccessful.

This system usually has two important subsystems: one is the main system of strategic management, that is, the strategic management system, and the other is the object system of strategic guarantee, that is, the guarantee system of strategic upgrading. The main body is to ensure that the company is on the right path and direction; The goal is the key to ensure the realization of the strategy, that is, to ensure whether the correct strategy can be effectively implemented. The two complement each other, are interrelated, are the main body of each other, and are indispensable.

3.？ Finally, cultural upgrading is the guarantee for the success of strategic upgrading. Culture is the soul of an enterprise and the systematic expression of entrepreneurship in the company. Strategic upgrading is actually a journey of cultural reconstruction and ideological change, and the most difficult thing to change is the change of ideological knowledge and mental model, which is why countries, companies and other organizations need to upgrade their culture before major changes and transformation and upgrading. It should be emphasized that entrepreneurship is the key and decisive factor for the success of strategic upgrading. The strategic upgrade inevitably stems from the characteristics of entrepreneurs (top leaders) such as self-denial, breakthrough and change, and is also the result of top leaders' strategic determination, self-change, innovation, breakthrough and error correction ability, consciousness and action.