A discussion on structural and operational
approaches for businesses in the digital
marketplace.
Most
discussions around enterprise excellence focus on performance drivers developed and refined in industrial sectors, drivers that include simplification and standardization together with the elimination of waste, waiting
time and re-work.
The emphasis is on the right day to - day work processes to enable an organization to achieve significant measurable performance improvements in cash flow and cost efficiencies by improving flexibility and speed to market, quality and reliability, and customer value.
But the emphasis on how work is carried out day to
day tends to obscure the importance of attending to how the business is
organized.
An organisation can pursue structural advantages by
ensuring that the follow key components are in place.
The
“right” Business Model
The
“right” Operating Model
The
“right” Asset Footprint to support the Operating Model
The following is a list of structural questions for Executives pursuing a future in the digital marketplace.
Is my organization aligned to the local, regional and global business models and priority markets?
How do
I strike a balance between global presence and local responsiveness?
Does my Supply Chain network (manufacturing and distribution) align
with market demands, including?
Meeting customer requirements and being endorsed
for doing so
Compliance with local, regional and global
regulations and licensing requirements
Shareholder expectations that they will thrive in
the digital market place
The provision of employment opportunities for the
millennium generation
Do I
know what my core and non-core business processes are at each level of my
organization?
Does
my business model include redundant activities?
Are
any of the redundant processes non-core to the business?
Do I
have the right capabilities to drive the business forward?
An organisation can pursue operational advantages by ensuring that the follow key components are in place.
The required ability to respond to market shifts (Speed and Agility)
The ability to adapt processes, organizations and
assets to meet changes in customer demands (Flexibility)
The ability to maintain rigorous process execution
across the enterprise to drive sustainability (Discipline)
The following is a list of
operational questions that Executives pursuing a future in the digital marketplace should be asking themselves.
What
degree of flexibility do I need in adapting my processes and organization to
accommodate market shifts and changes in customer demands?
How
much discipline is needed to support process execution?
What
are the critical processes that drive my primary value chains?
Do I
need the ability to adapt my processes and organization to changes in customer
demands?
What
is my productivity requirement?
How
successful has my process ownership program been?
Are my
day to day process challenges local issues or are the same issues dealt with
globally?
Do I
track performance at the process level?
Businesses that will thrive in the digital marketplace will be characterised by the following attributes.
Optimal global and local processes that support the organizations core
value chains
The
ability to identify and remove non value added processes
The
maturity and integration of their digital information systems
The
ability to identify, secure and retain unique talent
The
degree to which their governance model enables the following:
The internal DNA of the business
will need to reflect the following:
Cultural
characteristics that allow for discipline, agility, speed and an ability to
rapidly change in line with market trends and competitor innovations
Leaders
that can drive change on a scale and at a speed we have not seen before
Employees that can embrace customer expectations or be
prepared to pay for it in a very public manner.
For more information visit us on the web at http://mdms.asia or contact me directly at desmond@mdms.asia
