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Mind the Gap – Can your Digital Operating Model Support your Digital Strategy?

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Mind the Gap – Can your Digital Operating Model Support your Digital Strategy?

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Young, fast and agile digital disruptors are increasingly posing competitive threats to incumbents. Many legacy companies have responded to these threats by creating a forward-looking digital business strategy.

The problem they often encounter, however, is that the weight of an old, out-of-date operating model is a drag on the new strategy.

In this PoV, we detail the elements of an effective digital operating model. Such a model—or models—is critical to executing digital business strategies successfully, overcoming disruption and creating value.

Young, fast and agile digital disruptors are increasingly posing competitive threats to incumbents. Many legacy companies have responded to these threats by creating a forward-looking digital business strategy.

The problem they often encounter, however, is that the weight of an old, out-of-date operating model is a drag on the new strategy.

In this PoV, we detail the elements of an effective digital operating model. Such a model—or models—is critical to executing digital business strategies successfully, overcoming disruption and creating value.

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Mind the Gap – Can your Digital Operating Model Support your Digital Strategy?

  1. 1. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. CAN YOUR DIGITAL OPERATING MODEL SUPPORT YOUR DIGITAL STRATEGY?
  2. 2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. THE RACE TO DIGITAL Young, fast and agile digital disruptors are increasingly posing competitive threats to incumbents. Many legacy companies have responded to these threats by creating a forward-looking digital business strategy.
  3. 3. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. AN OLD DRAG ON A NEW STRATEGY The problem they often encounter, however, is that the weight of an old, out-of-date operating model is a drag on the new strategy.
  4. 4. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. CLOSING THE GAP BETWEEN YOUR STRATEGY AND OPERATING MODEL Such a model — or models — is critical to executing digital business strategies successfully, overcoming disruption and creating value.
  5. 5. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. KEY ELEMENTS OF AN EFFECTIVE DIGITAL OPERATING MODEL These four elements can be highly leveraged to deliver business benefits in a digital context: • Organization: Creating structural agility to enable speed • Incentives: Driving the right behaviors • Culture: The missing glue • Capabilities: Establishing a digital foundation for success
  6. 6. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. TAKING ACTION Traditional companies need to learn how to adapt operating models to the specificities of different functions. • Based on Accenture research, 75% of incumbents agree that successful digital operating models will be flexible, dynamic and customer-centric. • 81% acknowledge the need to manage multiple operating models in parallel.
  7. 7. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. FOUR KEYS TO CREATING A FLEXIBLE AND ADAPTIVE OPERATING MODEL: Re-shape organization structures and governance to allow for speed. Digital innovations hubs — or a centralized "Digital Hub" — can help traditional companies get the speed they need to keep up with the fast pace of digital disrupters.
  8. 8. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. FOUR KEYS TO CREATING A FLEXIBLE AND ADAPTIVE OPERATING MODEL: Re-think board & C-suite incentive structures to help reallocate capital to fund new bets. Giving the C-suite flexibility to pursue strategic growth initiatives outside of optimizing traditional "cash cows" can provide the capital ad focus required to be successful.
  9. 9. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. FOUR KEYS TO CREATING A FLEXIBLE AND ADAPTIVE OPERATING MODEL: Invest in fundamental digital capabilities regardless of your digital strategy. Specific digital capabilities — such as rapid prototyping combined with a deeper empathetic understanding of customer needs — can provide a higher degree of certainty that your strategy will be successful.
  10. 10. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. FOUR KEYS TO CREATING A FLEXIBLE AND ADAPTIVE OPERATING MODEL: Transform corporate culture to accommodate open ecosystems, innovation, risk-taking, openness and customer obsession. Culture change that moves traditional companies away from "the way we've always done things" and embraces failing quickly can embed startup-like concepts into the corporate DNA.
  11. 11. Learn more about how selecting the right digital operating models can help overcome disruption and create value with our full report: @AccentureStrat Follow us on LinkedIn Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Mind the gap: Can your digital operating model support your digital strategy? JOIN THE CONVERSATION:

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