THURSDAY, March 28, 2024
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Operating model transformation in response to a changing world

Operating model transformation in response to a changing world

IN A current competitive world of the ‘Fourth Industrial Revolution’, a significant growth of digital disruption potentially offers businesses huge opportunities for better efficiencies and wider market insight, but, at the same time, create more competitors, and disrupt the traditional way of how enterprises design strategies and operate.

It is a challenge for leaders to reconsider whether their current business and operating models are still efficient for the changing environment.
Businesses should imagine how innovation can disrupt their existing operating model. Technology is no longer the single celled organisms or collective single-celled but it becomes functioning organic network that is engaged into every angles of business throughout strategy, and operational processes. The disruption impacts business model through 3 key areas; responding to customer needs, new way of working and new forms of value. 

Responding to customer needs
Customer is one of the most crucial factors changed by technology. Considering the rising of data and choice availabilities online, customers’ expectation and behavior vary over time given more knowledge, more data and more choices easily obtained. Business should be ahead of customers in terms of speed and various channels of services offering to meet dynamic needs of customers. 
To do this, operating model should be adopted beyond a product-channel orientation, but more into a customer-centric focus. Modernized and digitalized customer-center platform enables operation’s capability to speed up the response to customer in every service level, recognize and resolve problems in a timely manner. Omni Channel strategy, one of technology evolution for retailers, is a development of multi- and cross- channels which serve customer beyond e-commerce but more into customer experience. Customer’s online and offline shopping journey are automatically recorded and integrated into back office operation. Each customer’s shopping process could be closely tracked to generated buying history including item viewed and purchased, time spent and channels accessed, i.e. mobile device, browser or even at the store for future online/offline purchase and also items reordering. 
New Way of Working 
Technology creates a possibility of new collaboration, communication and information flow. Cloud-based, Chatbots, AI/Cognitive tools and other online applications enable more comprehensive ways to communicate, to access real time data and to fasten knowledge transfer across business units and organizations. Collaboration could be promoted within and across functions and also partnership with the external in order to maximize the resource pool, knowledge sharing and technology investment.
New operating model should be designed to promote a collaborative culture which builds more responsive service delivery network. Front-, middle- and back- office operations can be reorganized to perform as one team to enable a spread of information and personnel across all functions/business units. In parallel, for external collaboration, the model should be able to determine how much ecosystem alliance; partnership should be made to create a maximum benefit for organization as overall.

New Forms of Value
As mentioned above, the value of technology-enabled operating model create integrated and efficient sets of process and activities as well as talent and new technology enhancement. In addition, technologies such as interactive data visualization and business intelligence could enhance controlling and monitoring performance since it generates real time and precise management dashboard, streamlining information flow, visualized reporting and provide predictive information to support decision making. 
In the digital age, technology challenges companies to be leaner, faster, and well-operate at a maximum level. Even digital transformation and innovation might be a significant investment, Deloitte believes that it would create much greater return in a long term, just like what startups are investing. The result of new operating model development and a digital support for lean cost structure will potentially lead to business growth and the high value in all parts of the value chain. It depends on how ready your businesses are to ride the digital tide and get ahead of the changing world.

Contributed by KESSARA SAKMANEEVONGSA, Partner, Consulting Services, Deloitte Thailand
 

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