Transformation processes: what is important for Ukrainian business

Global trends present international companies with a challenge: either you change or you will disappear. If earlier Ukraine used to implement changes with some delay, today the rapidly changing world does not allow anyone to stand still.

What representatives of Ukrainian business understand under the transformation? According to the survey results, the majority (60 percent) of respondents believe that transformation is a simultaneous, direct impact on business as a system in order to achieve transition to a new level of maturity.

At the same time, 25 percent of respondents view transformation as a fundamental change in the company's strategy, and only 15 percent consider transformation as a timely implementation of innovations. It is worth mentioning that representatives of Ukrainian business perceive transformation as an in-depth and comprehensive process that guarantees transition to a higher level of service quality.

As mentioned earlier, entrepreneurs named competition and search for opportunities in new markets as the main drivers of transformation.  Most of respondents (44 percent) selected this option when answering the question “Which of the drivers could trigger the transformation of your business?” Interestingly, the impact of global trends and attitude/position of an owner were selected as transformation drivers by 20 and 17 percent of respondents, respectively.

As we can see, Ukrainian business believes that changes require achievement of a balance between external and internal processes. Other transformation drivers were not so popular among the respondents: 10 percent selected technology, 6 percent selected changes in legislation, and 3 percent – the need to attract investments.

Transformation is a gradual and complex process; therefore, it requires dedicated priority setting. At least 50 percent of Ukrainian entrepreneurs want to change operational and business processes in a company first. This was the top response given by respondents to the question “Transformation of which business area do you consider the top priority?” The companies also understand the need for changes in human capital management (15 percent of respondents from HR sphere) and implementation of new technologies (13 percent).

Financial, tax, reputation and communication spheres scored 10 percent each, sharing the fourth place in the top priority ranking. However, only 2 percent of respondents selected the change of legal structure as their priority.

Complex Business Transformation team of Deloitte Ukraine believes that in order to achieve a meaningful transformation of business the changes should cover all areas of its activities. Deloitte Complex Business Transformation practice offers a wide range of services for Ukrainian companies and facilitates coordination of focused, single-step actions directed toward business as a system.