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
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