In addition to new market opportunities and change in customer preferences, as a known fact, technology is also changing very fast. In view of the…

CA Intermediate · Financial Management and Strategic Management · MTP · September 2026
In addition to new market opportunities and change in customer preferences, as a known fact, technology is also changing very fast. In view of the same, 'Twaran', having a small and mid-sized business, wants to use latest digital technologies for improved procedures and products. The primary aim of the firm is to have a competitive edge in the evolving business landscape through digital transformation. The entity would like to deal with regular changes firmly, along with transforming its management techniques. Identify the strategy required for digital transformation. Also state the most preferred practices to be followed by the entity.

Suggested Answer and Working Notes:

To enable successful digital transformation, the appropriate strategy for 'Twaran' is a Change Management Strategy. It is essential to effectively manage the organizational, procedural and cultural changes brought about by the adoption of new digital technologies. Following are the five best practices for managing change in small and medium-sized businesses: Begin at the top: Change should be initiated and driven by unified, focused leadership. A committed top management can create and promote a culture that inspires the organization to embrace change. Ensure that the change is both necessary and desired: Before initiating digital transformation, decision-makers must understand its necessity and long-term impact. Without a proper strategy, introducing too much change too quickly can be counterproductive. Reduce disruption: It is essential to minimize employee disruption during transformation. This can be done by: Communicating changes early. Equipping employees with tools and training. Empowering change agents like project managers. Involving IT teams proactively. Creating an environment conducive to change. Encourage communication: Promote open and continuous two-way communication. This ensures that employees feel heard and involved and that concerns are addressed timely. Effective communication also promotes innovation and collaboration across departments. Recognize that change is the norm, not the exception: Businesses must treat change as a continuous process, not a one-time project. Being change ready helps the organization to adapt, sustain performance and stay aligned with evolving customer expectations.

Topics: Part-A: Financial Management

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