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
Customer recognition of the businesses agility, flexibility and level of service
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.
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