Transcription of FEATURE - Deloitte
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FEATURE - Deloitte
FEATUREA rchitecting an operating modelA platform for accelerating digital transformationAnne Kwan, Maximilian Schroeck, and Jon KawamuraPART OF A Deloitte SERIES ON DIGITAL INDUSTRIAL TRANSFORMATION2 FIGURE 1 What makes a strategic transformation succeed or fail?Sources: Marcia Blenko, James Root, and Nader Elkhweet, When weak operating models happen to good strategy, Bain Insights, April 2, 2015; Ron Carucci, Executives fail to execute strategy because they re too internally focused, Harvard Business Review, November 13, Insights | of UNSUCCESSFUL TRANSFORMATIONSGap between strategy and execution; culprit is usually an obsolete/misaligned operating modelCharacteristics of SUCCESSFUL TRANSFORMATIONS64 percent build their budgets around and allocate specific company resources to their strategies60 percent do not link budgets to strategies, meaning resources and capabilities are not aligned to goals77 percent translate their strategy into operational mechanisms, monitor progress, and make changesExecutives leave old organization designs in place, inhibiting change in responsibili-ties and processesCompanies with top-quartile operating model indicators have five-year CAGRs 120 basis points higher than those in the bottom quartileIntroductionAcross a broad spectrum of sectors, artificial intel-ligence (AI), digital, the Internet of Things (IoT), process automation, and other technologies are shifting value from manufacturers and distributors to co
pla and ho ill e in in these maretseg hich cstomers and pricing 3 hat capailities are needed hich capaili - ties must be built, refined, or oght 4 o shold capailities e configured? Where should ... and pl nning Roles, decision rights, and ... • -transformation:, , , , , and .
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