Flying High in Digital Transformation: The Operations Ecosystem

Editor's Note: Take a look at our featured best practice, Digital Transformation Strategy (145-slide PowerPoint presentation). Digital Transformation is being embraced by organizations across most industries, as the role of technology shifts from being a business enabler to a business driver. This has only been accelerated by the COVID-19 global pandemic. Thus, to remain competitive and outcompete in today's fast paced, [read more]

Also, if you are interested in becoming an expert on Digital Transformation, take a look at Flevy's Digital Transformation Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

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We are living in a Digital Age. Digital Transformation Strategy has become essentially important for any organization to remain competitive, across all industries.

Organizations that have excelled in Digital Transformation have achieved mastery of the 4 critical Business Ecosystems.

1. Customer Solutions Ecosystem
2. Operations Ecosystem
3. Technology Ecosystem
4. People Ecosystem

In this article, let us focus on the Operations Ecosystem. Mastering the Operations Ecosystem will enable organizations to gain the momentum to fly high.

The Operations Ecosystem

The Operations Ecosystem encompasses the physical activities and flows that support the Customer Solutions Ecosystem.  It is the solution enablement and Value Chain efficiency layer. It includes the organization’s external partners – the contract manufacturers, their logistics partners, and academic.

The Operations Ecosystem is the spine of the Digital Leader’s Value Chain.  The functions that support the Digital Leader in addition value to its relationships with consumers operate here.

The Five-fold Benefits of Operations Ecosystem

When Digital Leaders have achieved a high degree of maturity in both Operations and Customer Solutions Ecosystem, the benefits are five-fold.

1. Transparency – When transparency is achieved, there is a complete end to end view of the Operations Ecosystem.

2. Real Time Data-sharing – Information can be seen immediately by all value chain members leading to synergy of actions.

3. Extended Collaboration – Collaboration with partners such as suppliers develops organically.  This becomes deeper and more synergistic as the solutions in the value chain require.

4. Immediate Responsiveness and Flexibility – There is a real time response to demand changes from end customers. Likewise, there is prompt action at the planning and execution level across all tiers.

5. Connectivity – The seamless integration of internal and external product life cycle management, supply chain management, and customer information enables a well-connected end to end value chain from production creation the consumer.

With the benefits gained from digitally matured Operations Ecosystem, organizations can direct delivery of high value driven Customer Solutions offering. This is made possible as Operations Ecosystems are managed by an integrated planning and execution layer than can facilitate delivery of results. A smoothly functioning Operations Ecosystem provides a seamless transition among suppliers, logistic providers, manufacturers, and customers.

Organizations just need to gain mastery of the Operations Ecosystem to reap its benefits and remain competitive in the world where Digital Leaders are gaining ground.

Interested in gaining more understanding on Operations Ecosystem?  You can learn more and download an editable PowerPoint about mastery of the Operations Ecosystem within Digital Transformation here on the Flevy documents marketplace.

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Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.

For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).

Learn about our Digital Transformation Best Practice Frameworks here.