Managing business transformation to deliver strategic agility

Abstract For some time, it has been claimed that information and communication technologies (ICTs) provide the means for transforming the way business is conducted in many industries, but our understanding still remains unclear how this form of change can be managed. This paper seeks to explore ICT‐based business transformation and in trying to understand better this concept, it is established that there is no ‘one best way’ to set about change. Moreover, every transformation programme is unique, presenting distinct opportunities and challenges. While there are a number of ways in which executives can seek to better understand how they can engage in business transformation, the true measure of successful business transformation is in the nature of its implementation. Even in those organizations where there is a universal recognition that business transformation is important and responses are implemented, performance may still suffer. This syndrome, which is common in organizations, has been described as ‘active inertia’ and can be characterized as an organization's inability to take the appropriate action in the face of shifting market and business changes. The emphasis here is on the term ‘appropriate’ rather than ‘action’ per se. The paper develops a framework which illustrates that successful ICT‐based business transformation programmes are generally founded upon changing behaviour, changing thinking, and changing perceptions of all key personnel. Copyright © 2008 John Wiley & Sons, Ltd.