What Is a Digital Operating Model?
An operating model serves as the bridge between strategy and execution, articulating the organization of resources and the use of those resources in meeting organizational goals.
A digital operating model (DOM) builds upon this notion to describe the resources, processes, and technologies used in performing digital operations and in delivering digitally enabled experiences. More than any other management tool, a DOM answers the “how” of digital transformation and enables the velocity, coordination, and customer focus that CX leaders require.
“Structure follows strategy as the left foot follows the right.” —Henry Mintzberg, management theorist, professor, and author
Since the start of the digital revolution, businesses have been evolving their operations to meet changing demands. Digitalization, rising consumer expectations, regulatory swings, and environmental pressures are but a few of the forces driving operating model change today. To keep up with these changes — and encroaching digital natives — organizations must adopt core digital models built to deliver agility and customer focus.
For many organizations, developing a digital-first mindset and implementing a robust DOM at the heart of the business is a critical step on the path to digital mastery. The DOM should consider the company’s digital strategy, its market situation, and available assets and resources.
A comprehensive DOM is comprised of six core components: structure, governance, processes, people, systems, and performance. Each component must be thoughtfully designed to respond with agility to customer priorities, supplier realities, and business needs. When fundamental factors and needs change, the model should too.