CIO BLOG: The integration of Business and Technology strategies requires a new operating model to efficiently execute in a true Digital Enterprise. Organizations need to reinvent by merging Business Operations and Technology with the goal of leveraging digital assets for competitive differentiation.
Operating model takes strategy as input and outputs plan to execute efficiently. Digital operating plan takes advantage of the Organizational unique Business and Technical capabilities to deliver customer focused products and services.
A successful implementation of this digital operating model requires an innovative technology strategy tightly integrated with Business objectives along with strong Governance for seamless execution. Change management is also critical for breaking down departmental barriers and transition from legacy to modern technology.
The Three Digital Operating Model Components:
Governance & Accountability: Framework for empowerment with accountability to reward innovation, and continuous improvement to develop a results-driven organization.
- Unified vison and strategy with defined roles and responsibilities for focused execution.
- Cultivate a continuous improvement mindset (Hire top talent and empower employees)
- Leverage Information technology best practices for security, risk, and resource management
People & Culture: Business and Information Technology teams need to collaboratively engage with all stakeholders, including customers and partners, to innovatively develop products and services.
- Develop Cross-functional teams to integrate Business and Technology
- Enable faster decision making by eliminating bureaucratic processes
- Encourage and empower employees culturally to take risks
Technology & Innovation: Adoption of the right technology to enable faced paced business transformation.
- Modern technology platforms to support faster execution of Business strategies
- Digital process automation for efficiency and value generation
- Differentiated products and services for exceptional customer experience
“DIGITAL OPERATING MODEL REQUIRES ORGANISATIONS TO BUILD CROSS-FUNCTIONAL BUSINESS, AND TECHNOLOGY TEAMS TO ANALYZE, PLAN, BUILD & EXECUTE TOGETHER”
True integration of business stakeholder knowledge on strategy, process, products, and customers coupled with technology team skills of DevOps, artificial intelligence, automation, and data science enables the development of services that can digitize and differentiate your Business.
Information technology departments need to OPERATE efficiently for fast-paced execution:
Digitization is not easy – It fundamentally changes the way we operate and impacts critical business processes. Building a digital operating model requires strong Executive support and buy-in from all stakeholders.
Integrated Information Technology and Business teams executing a multiyear technology roadmap aligned with Business goals leveraging a digital operating model can provide the following advantages:
- Provide unique customer experience
- Develop capabilities faster than competitors
- Automate processes for efficiency
- Integrate seamlessly with partners and vendors
- Leverage data for informed decision making
- Execute with vigor for timely delivery
Efficiencies gained with digital strategy, and operating model will ensure Organizations continuously generate value for their customers and stay relevant in the modern world.