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

Companies 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.

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.

New operating model is a 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.

Instead of working on separate initiatives inside organizational units, companies have to think holistically about how their operations can contribute to delivering a distinctive customer experience. The best way to do this is to focus on customer journeys and the internal processes that support them.

Companies fall into the trap of simply trying to improve existing processes. Instead, they should focus on entirely reimagining the customer experience, which often reveals opportunities to simplify and streamline journeys and processes that unlock massive value. Concepts from behavioral economics can inform the redesign process in ingenious ways.