{"id":6108,"date":"2020-01-09T06:30:28","date_gmt":"2020-01-09T11:30:28","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=6108"},"modified":"2020-12-18T12:42:41","modified_gmt":"2020-12-18T17:42:41","slug":"how-to-redesign-your-operating-model-for-the-digital-age","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/how-to-redesign-your-operating-model-for-the-digital-age\/","title":{"rendered":"How to Redesign Your Operating Model for the Digital Age"},"content":{"rendered":"

\"\"Lean Management<\/a> plays a significant role in putting in place processes, capabilities, and tools to improve how businesses operate. But, now, in the Digital Age, emerging Digital technologies give us even more opportunities to further transform and improve operations. However, with increased opportunities, there’s also increased complexity.<\/p>\n

Tasks performed by humans are now more complex–be it accessing information in multiple formats from multiple sources or responding to changing market and customer dynamics at ever-increasing speed. As increasing number of tasks become automated or taken over by cognitive-intelligence capabilities, we need to learn from Lean Management.<\/p>\n

In the Digital Age, fast moving organizations must have a system to continually synchronize strategies, activities, performance, and health. Many organizations understand the need to change how they work and have embarked on numerous initiatives, yet few have been able to get beyond isolated success cases or marginal benefits.<\/p>\n

For us to successfully drive our business forward with a comprehensive\u00a0Digital Transformation<\/a>\u00a0project, we need to develop a\u00a0“next-gen” Digital Operating Model<\/a>. A robust Digital Operating Model rests on 4 core pillars (depicted below).<\/p>\n

\"\"<\/a><\/p>\n

Let’s take a closer look into each pillar.<\/p>\n

1. Autonomous, Cross-functional Teams<\/strong><\/p>\n

The focus here is to put together a team with the right combination of skills to build products and serve customers. We need to reconfigure organizational boundaries and revisit the very nature of teams by creating more fluid structures in which day-to-day work is organized.<\/p>\n

We can become nimble in how we build skills across their teams by making anchor hires for key roles, setting up rotational, and train the trainer programs, and committing to ongoing capability building and training for key roles.<\/p>\n

2. Flexible, Modular Platform<\/strong><\/p>\n

This second pillar is all about supporting a faster deployment of products and services. Our technology infrastructure should be based modular architecture that supports flexible and reusable technologies. This accelerates development and prioritizes the use of common components, leading to development efficiency and consistency.<\/p>\n

By building more flexible architecture, this also enables us to partner with an external ecosystem of suppliers and partners.<\/p>\n

3. Connected Management System<\/strong><\/p>\n

Through a connected management system, we can drive a culture of Continuous Improvement centered on customer needs. The connected management system is characterized by:<\/p>\n

    \n
  1. Continuous evolution to create feedback mechanisms with and between various operations and teams.<\/li>\n
  2. Metrics that are supported by joint incentives tailored to each level of the organization and reinforcing behaviors to support customers regardless of organizational boundaries.<\/li>\n
  3. Performance Management<\/a> becoming much more real time, with metrics and goals used daily and weekly to guide Decision Making.<\/li>\n<\/ol>\n

    4. Agile, Customer-centric Culture<\/strong><\/p>\n

    The final pillar is centered around fostering a Corporate Culture<\/a> that’s Agile<\/a> and based on Customer-centric Design<\/a>–one that emphasizes speed and execution over perfection.<\/p>\n

    Now, armed with an understanding of these pillars, the next step is to develop the implementation approach for our Digital Operating Model Transformation and embed it within the overarching Digital Transformation project.<\/p>\n

    For this, there are typically 4 approaches to Operating Model Transformation:<\/p>\n

      \n
    1. Innovation Lab<\/li>\n
    2. Digital Factory<\/li>\n
    3. Business Unit Accelerator<\/li>\n
    4. Enterprise Evolution<\/li>\n<\/ol>\n

      Want to learn more about next-gen Operating Models within the context of Digital Transformation? Take a look at our framework presentation on the topic,\u00a0Digital Operating Model Transformation<\/a>.<\/p>\n

      This framework is part of the\u00a0Digital Transformation Stream<\/a><\/strong>\u00a0(https:\/\/flevy.com\/browse\/stream\/digital-transformation<\/a>).<\/p>\n

      Do You Find Value in This Framework?<\/h2>\n

      You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives. Here\u2019s what some have to say:<\/p>\n

      \u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n

      \u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n

      \u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n

      \u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p><\/blockquote>\n

      \u201cAs a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant\u2019s toolbox.\u201d<\/p>\n

      \u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p><\/blockquote>\n

      \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n

      \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n

      \u201cSeveral times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients\u2019 benefits.\u201d<\/p>\n

      \u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

      Lean Management plays a significant role in putting in place processes, capabilities, and tools to improve how businesses operate. But, now, in the Digital Age, emerging Digital technologies give us even more opportunities to further transform and improve operations. However, with increased opportunities, there’s also increased complexity. Tasks performed by humans are now more complex–be… How to Redesign Your Operating Model for the Digital Age<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":6111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[84,82],"tags":[],"class_list":["post-6108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-information-technology","category-operations"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=6108"}],"version-history":[{"count":4,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6108\/revisions"}],"predecessor-version":[{"id":7746,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6108\/revisions\/7746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/6111"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=6108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=6108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=6108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}