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Rural entrepreneurship in Wales
Rural entrepreneurship in Wales

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4.1 Transformation model

Any organisation takes inputs and applies some sort of transformation process that results in a significantly different output.

Described image
Figure 19 Transformation process


Three types of input that might be transformed are:

  1. materials – the physical inputs to the process
  2. information that is being processed or used in the process
  3. customers – the people who are transformed in some way.

It is not just physical goods that are subject to this process of transformation. All organisations that produce goods or services transform resources. Many are concerned with the transformation of information (e.g. accountants, consultancy firms) or the transformation of customers (e.g. hairdressers, hospitals).

There are two types of resources that are used to perform the transformation process:

  1. staff – the people involved directly in the transformation process or supporting it
  2. facilities – land, buildings, machines and equipment.


Many transformation processes involve both goods and services. Some outputs are not desirable, e.g. waste products, the environmental impact of which must be considered.

The social impact of the transformation process must also be considered, locally as well as globally.