2. Transformation trends in Japan
There are many reasons companies are transforming. The most common objectives of transformations launched in the past 5-7 years, according to the study, were core business expansion (65%), followed by business efficiency (59%). The most challenging types of transformations involved a significant change in business strategy (33%) and cross-functional transformation (27%).
Looking forward, transformation objectives are shifting from core business expansion and business efficiency improvements, to significant business strategy changes (78%) and cross-functional transformations (76%), both of which tend to be larger and more complex.
It is commonly understood that change is difficult, and this study confirms it. Only 19% of transformations were completely successful; success defined as achieving the project’s objective, timeline and budget. 45% of transformations failed to meet any success criteria.