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Business transformation under uncertainty: understanding the value of strategic flexibility

Business transformation under uncertainty: understanding the value of strategic flexibility Firms that grow through mergers and acquisitions often need to deal with duplicate and disparate business functions. Specifically, firms often need to transform and optimise their business processes through simplification, standardisation, consolidation, insourcing and/or outsourcing. In order to decide whether and how to perform these transformation initiatives, firms need to estimate the value of different transformation approaches. Conventional valuation approaches tend to focus on foreseeable cost savings. In this study, we propose that in a turbulent global business environment, the value of strategic flexibility, which may be embedded in different business transformation approaches, should be explicitly incorporated in such valuation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Services Operations and Informatics Inderscience Publishers

Business transformation under uncertainty: understanding the value of strategic flexibility

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd. All rights reserved
ISSN
1741-539X
eISSN
1741-5403
DOI
10.1504/IJSOI.2010.031048
Publisher site
See Article on Publisher Site

Abstract

Firms that grow through mergers and acquisitions often need to deal with duplicate and disparate business functions. Specifically, firms often need to transform and optimise their business processes through simplification, standardisation, consolidation, insourcing and/or outsourcing. In order to decide whether and how to perform these transformation initiatives, firms need to estimate the value of different transformation approaches. Conventional valuation approaches tend to focus on foreseeable cost savings. In this study, we propose that in a turbulent global business environment, the value of strategic flexibility, which may be embedded in different business transformation approaches, should be explicitly incorporated in such valuation.

Journal

International Journal of Services Operations and InformaticsInderscience Publishers

Published: Jan 1, 2010

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