Government Insurance NGO Oil Industry

The next-generation operating model for the digital world

Companies need to increase revenues, lower costs, and delight customers. Doing that requires reinventing the operating model.

Companies know where they want to go. They want to be more agile, quicker to react, and more effective. They want to deliver great customer experiences, take advantage of new technologies to cut costs, improve quality and transparency, and build value.

Shift #1: From running uncoordinated efforts within siloes to launching an integrated operational improvement program organized around journeys

Shift #2: From applying individual approaches or capabilities in a piecemeal manner to adopting multiple levers in sequence to achieve compound impact

The problem is that while most companies are trying to get better, the results tend to fall short: one-off initiatives in separate units that don’t have a big enterprise-wide impact; adoption of the improvement method of the day, which almost invariably yields disappointing results; and programs that provide temporary gains but aren’t sustainable.

We have found that for companies to build value and provide compelling customer experiences at lower cost, they need to commit to a next-generation 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 step-change improvements in revenue, customer experience, and cost.

The next-generation operating model for the digital worldA simple way to visualize this operating model is to think of it as having two parts, each requiring companies to adopt major changes in the way they work: The first part involves a shift from running uncoordinated efforts within siloes to launching an integrated operational improvement program organized around customer journeys (the set of interactions a customer has with a company when making a purchase or receiving services) as well as the internal journeys (end-to-end processes inside the company). Examples of customer journeys include a homeowner filing an insurance claim, a cable-TV subscriber signing up for a premium channel, or a shopper looking to buy a gift online. Examples of internal process journeys include Order-to-Cash or Record-to-Report.

The second part is a shift from using individual technologies, operations capabilities, and approaches in a […]

read more – copyright by www.mckinsey.com

  1. SwissCognitive

    The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/MXRhZoJZFR

  2. SIBMedu

    The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/0RwvN2QhBJ

  3. Angel J Salazar

    RT @SwissCognitive: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/MXRhZoJZFR

  4. REYYAN DEMIR

    RT @SwissCognitive: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/MXRhZoJZFR

  5. Boris Nell

    RT @SwissCognitive: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/MXRhZoJZFR

  6. Impact HUB Firenze

    RT @DalithSteiger: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/z0kM72QboM

  7. Lynn Martin

    RT @andy_fitze: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/H9CT7VKnpF

  8. Angel J Salazar

    RT @andy_fitze: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/H9CT7VKnpF

  9. Lin-sideB

    RT @andy_fitze: The next-generation #Operating_Model for the #Digital_World

    #McKinsey #News
    https://t.co/H9CT7VKnpF

Leave a Reply