Architecting an operating model for digital transformation

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new-operating-model-for-the-digital-transformation Architecting an operating model for digital transformation

We have found that for organizations to build value and provide compelling customer experiences at lower cost, they need to commit to a new operating model. This operating model is a new way of running the organization that combines digital technologies and operations capabilities in an integrated, well-sequenced way to achieve improvements in revenue, customer experience, and cost.

What is digital operating model?

The Digital Operating Model is one of the enablers designed to help organizations to renew the customer experience in the digital era. Adopting a “Digital First” mindset— putting digital at the heart of the business—enables banks to redefine their relationship with their customers

An operating model describes how people, process and technology are organised to achieve strategic objectives.

Deloitte Insights defined an operating model as simple but comprehensive: An operating model represents how value is created by an organization—and by whom within the organization.

What is the purpose of an operating model?

The primary purpose of a Target Operating Model is to enable the application of a corporate strategy or vision to a business or operation. It is a high-level representation of how a company can be best organized to more efficiently and effectively deliver and execute the organization’s strategy.

What is operating model transformation?

Operating model transformation helps maximize efficiency, and so this helps grow revenue. As you gain more customers, a lean and responsive operating model means that you can service your customers better.

Digital or not, executives must make decisions about changes to their business in four key categories — value proposition, customer, capabilities, and finance.

What does a target operating model include?

Target operating model is a blueprint of a firm’s business vision that aligns operating capacities and strategic objectives and provides an overview of the core business capabilities, internal factors, and external drivers, strategic and operational levers, organizational and functional structure, technology, and

What is the difference between business model and operating model?

An operating model is like the blueprint for a building….. An operating model describes how an organization delivers value, as such, it is a subset of the larger concept ‘business model’. A business model describes how an organization creates, delivers, and captures value and sustains itself in the process.

You’ll Learn:

  1. What is the role of the operating model in digital transformation
  2. How to design a new operating model
  3. 4 steps to design a new operating model

Resources:

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