The current tech landscape is characterized by surging technologies such as artificial intelligence, machine learning, cloud computing, and the Internet of Things. But though technological advancements and digital operating models promise significant benefits, challenges exist. These obstacles affect organizations’ efforts in achieving true agility and digital transformation. How then can businesses effectively navigate them to achieve their desired outcomes? This article delves into the key points from a panel discussion at Avasant’s recent Empowering Beyond Summit (EBS) 2024.
Businesses must continuously evolve to stay competitive in an era marked by relentless technological advancement and shifting market dynamics. Central to this evolution is the adoption of digital operating models that drive agility and innovation. At EBS 2024, a group of experts shared insights on how integrating technology, transforming organizational culture, and prioritizing customer experience are crucial for navigating the digital landscape. The discussion was moderated by Shobit Patnaik, Avasant Partner, and the panel included Nora Osman, President/CEO of Norvana, Richard Kabrt, Vice President at WNS North America, Ganesh Kumar, SEVP at OFG Bancorp, and Patricia Sedeno, SVP Global Financial Shared Services at Sony Music.
The Need for Speed in Technological Advancements
Patnaik set the stage by emphasizing the unprecedented pace of technological change. Drawing a parallel with a Netflix series about an alien invasion, he highlighted how the human race’s rapid technological advancements could outpace even an advanced alien civilization. This analogy illustrates how quickly technology is advancing. Its rapid pace could potentially outrun even the most advanced civilizations. This highlights the urgent need for organizations to keep up with technological advancements to remain competitive and relevant.
“It’s the pace of change that we are living through today that is phenomenal. It is disrupting value streams and operating models,” Patnaik noted. He also emphasized that digital operating models are not merely about implementing technologies but about fundamentally transforming the way organizations operate, engage with customers, and foster innovation. Therefore, as technology advances, barriers to entry into various industries reduce, increasing competition. Companies that swiftly innovate and adopt new technologies have an advantage. But IT leaders must remember that with rapid tech progress comes increased customer expectations for personalized, efficient, and innovative services. And organizations must adapt quickly.
The Human Centric Approach
Prioritizing human and customer-centric approaches in transformation initiatives is essential for driving organizational agility. Kumar emphasized understanding customer needs to tailor digital solutions, thereby enhancing satisfaction and business growth. Sedeno highlighted the importance of employee engagement in embracing new technologies, to ensure smoother implementation and operational flexibility. Furthermore, Osman stressed on leveraging data analytics to personalize customer experiences, enabling swift strategy adjustments.
Mega coffeehouse chain Starbucks adopts this approach by using technology to enhance both customer and employee experiences, creating a cohesive digital ecosystem. Through its mobile app and loyalty program, Starbucks provides a seamless and personalized experience, allowing customers to order and pay ahead, customize their drinks, and earn rewards. This not only improves customer convenience but also fosters loyalty and continued business. Additionally, Starbucks enhances employee experiences by providing digital tools that streamline operations and improve communication, ensuring employees are engaged and working efficiently.
By focusing on the needs and experiences of customers and employees, organizations can ensure their digital initiatives have a meaningful and lasting impact. As Kumar noted, “At the end of the day, it’s about people. Technology is just a tool to serve them better.” This human-centric focus is crucial for leveraging digital operating models to enhance agility and resilience in a rapidly evolving business landscape.
Balancing Innovation and Risk Management
Balancing innovation with risk management is a critical challenge for organizations today. The need for structured innovation within defined boundaries to mitigate risks is evident, especially in regulated industries such as banking. “We believe in exploiting technology to advance the business,” said Kumar. He also highlighted the importance of focusing on specific strategic goals and addressing internal organizational changes through HR and performance management, to align with innovation efforts. This approach minimizes unnecessary risks and ensures that all parts of the organization are prepared for technological change.
From a financial perspective, Sedeno underscored the need to prioritize long-term strategic goals over short-term financial returns. “By focusing on long-term objectives, companies can better navigate the uncertainties that come with digital transformation, ensuring they remain agile and adaptable,” she said. Additionally, Osman stressed the importance of robust communication to manage the risks of transitioning to new operating models. By ensuring everyone in the organization understands and is part of the mission, companies can foster a culture of psychological safety and encourage open dialogue about potential issues and challenges.
For example, Microsoft recognized that the transition to a cloud-based, SaaS model in Microsoft 365 required a significant shift in how they approached change management. David Johnson, principal product manager architect at Microsoft, said, “Microsoft 365 started changing every day, and we needed to figure out how to keep up.”
To deal with this, the company leveraged tools like the Microsoft 365 Message Center to keep customers informed about upcoming changes and their potential impact. They also encouraged IT administrators to regularly review docs.microsoft.com—an official Microsoft platform providing technical documentation, guides, tutorials, and references for Microsoft’s software products and services—to stay up-to-date. These insights highlight the importance of an integrated approach in balancing innovation with risk management, ensuring sustainable growth and resilience.
The Future of Operating Models
Looking ahead, digital operating models may require several critical approaches. Osman emphasized the importance of adaptability, customer-centricity, and technological integration. She also advocated for automating routine tasks to allow teams to focus on more creative and strategic work, ultimately improving customer service. Kumar underscored the necessity for continuous adaptation and innovation to meet evolving customer expectations. He also reiterated the importance of agility in reassessing and refining digital strategies to stay ahead in a competitive landscape.
Meanwhile, Sedeno highlighted the significance of integrating intelligent automation and data analytics to create personalized customer experiences. She emphasized using data to understand and anticipate customer needs, thereby fostering loyalty and satisfaction. Lastly, Kabrt noted, “I think the biggest coming change in operating models will be personalization because the tools we have now allow that rapid adaption to your individual needs and situation, be it a stakeholder in the company or external client.”
Despite highlighting various approaches, the consensus of the discussion was that customer-centricity remains paramount. The ability to adapt, innovate, and use technology effectively to meet customer needs was seen as crucial for organizations aiming to thrive in the digital age.
Conclusion
The current tech landscape demands that organizations embrace transformative digital operating models centered around agility, innovation, and customer-centricity. Success hinges on more than just adopting innovative technologies such AI and cloud computing. It also requires a cultural shift toward embracing change and prioritizing human insights. By effectively balancing innovation with risk management strategies, focusing on long-term strategic goals, and harnessing data-driven insights to personalize customer experiences, organizations can navigate the complexities of the digital landscape with agility and resilience. Looking ahead, the ability to continuously innovate and adapt will be pivotal for organizations aiming not only to survive but to thrive in a rapidly evolving business environment. This is an ongoing challenge, but organizations must remain dynamic and responsive in the face of technological advancements and shifting market demands.
By Teneka Carrington, Avasant