Organisations often transform a series of inputs. Returning to a previous example, imagine you are attending a class to learn how to make a chair. It is not simply the wood that is being transformed – tacit information about how to make a chair is being made explicit and you are, hopefully, acquiring a new set of skills and perhaps even a feeling of well-being. You can categorise transformation as follows:

• manufacture – the physical creation of products
• transportation – involving the movement of materials or customers
• supply – involving change of ownership
• service – involving the way customers are treated or the storage of materials.

The overall transformation process will typically involve a series of smaller transformations with different inputs. Taking a real example, social enterprise, Social Bite, operates sandwich shops and deliveries in order to address homelessness. Amongst other things, it involves:

• the transformation of raw materials through food preparation
• customer service which goes beyond meeting basic needs as the customers know that through their purchases they are helping the homeless
• the supply of sandwiches to different locations
• supporting the transformation of its employees through the employment and training of the homeless.

Next you will look in more detail at the resources and capabilities of your business.