Business transformation is needed to respond to various challenges today, such as the challenges from the Covid-19 pandemic. The term business transformation has also become the most widely used jargon these days. However, McKinsey stated that only 26 percent of companies succeeded in carrying out the transformation, while the remaining 74 percent failed.
In Indonesia, PT Sreeya Sewu Indonesia or Sreeya has been named the company with the best business transformation in 2021 by SWA magazine and Swanetwork. The CEO of Sreeya, Tommy Wattimena, shared his experience and insight in transforming Sreeya into MBA ITB students in a guest lecturer session on Monday (6/9/2021).
Tommy explained, Sreeya is engaged in the poultry industry, such as breeding, slaughtering, and processing. Before, the company lost billions of rupiahs due to various factors, such as inefficient business processes and low product quality. However, under business transformation by Tommy, Sreeya managed to transform into a profitable business and was awarded as the business with the best transformation.
There are at least five things that Sreeya does in transforming. Tomy explained that the first was knowing the company’s vision and mission.
“The company must have a clear vision and mission; the company must know where to go,” added Tommy. He added that the second is the company must have good leadership.
Third, the company’s business model should be different from others. Tommy highlighted that many businesses have the same business model, making it difficult to distinguish them from competitors and eventually, a price war ensues. “The biggest problem is that it makes no difference from one business to another,” he said.
Furthermore, the fourth and fifth points, which are also important in business transformation, are efficient business operations and culture or human capital. “The most important thing in transformation is culture,” added Tommy.
Apart from these five points, digitalization also plays a vital role in business transformation. Currently, many businesses experience losses or go bankrupt because they do not take advantage of digital facilities in their business. In Sreeya itself, Tommy is aware of this. Thus, Sreeya utilizes digital platforms to transform, such as blockchain, computer vision, IoT, demand-supply planning, sales force automation, human resource digitalization, optimal chicken revenue management, and transport management systems.
