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Defining the Operating Model
 for the Digital Enterprise

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Earlier this week at the IOM Summit in Cologne, I gave a talk entitled ‘Defining the Operating Model for the Digital Enterprise’ that outlined what I think are the two key foundations of a digitally transformed enterprise...

Published in: Business

Defining the Operating Model
 for the Digital Enterprise

  1. 1. Defining the Operating Model
 for the Digital Enterprise IOM Summit, Köln, September 2016 Lee Bryant POST*SHIFT
  2. 2. POST*SHIFT ConsultingSoftwareResearch
  3. 3. SOCIAL TECHNOLOGY ‣Social Business strategy ‣E2.0 / SocBiz platforms ‣Use cases / process surrounds ‣Adoption & awareness Social technology is an enabler for the future of work ORG DESIGN ‣Agile / podular teams ‣Networks and communities ‣Open / data-driven working ‣Customer / market pull SOCIAL TECHNOLOGY FUTURE OF WORK ‣New roles and tasking ‣Network-centric leadership ‣Business model innovation ‣New business structures ORG DESIGN SOCIAL TECHNOLOGY
  4. 4. Social tech in the workplace: necessary but not sufficient http://www.margolis.co.uk/enterprise-social-networks-study
  5. 5. Progress happening, but internal structure still a blocker
  6. 6. The world is changing faster than our organisations
  7. 7. Connected products require a connected company
  8. 8. As products change, so must the organisation
  9. 9. Agility is now the number one change goal for large orgs Source: Jon Husband's logo for Wirearchy
  10. 10. We have some great new theories and models of the organisation…
  11. 11. Circle-based structures (e.g. Medium) SUB-CIRCLE:
 Dedicated to a function SUPER-CIRCLE: 
 Responsible for the overall purpose ROLE: 
 A task related to a function
  12. 12. Tribes & Guilds Model (e.g. Spotify) TRIBE SQUADGUILD CHAPTER
  13. 13. Autonomous Business Units model (e.g. Haier) CUSTOMERS VALUE CREATING FUNCTIONS: Marketing, R&D, Manufacturing etc. SHARED SERVICES PLATFORM: IT, HR etc. SERVANT LEADERSHIP: Execs, Management
  14. 14. But in large firms, any new model hits major barriers • leadership culture & hierarchy • central departments & bureaucracy • top-down approach to change  • digital skills & employee culture • poor / centralised tech • competing owners of topics • focus on tech, not the org & people
  15. 15. But in large firms, any new model hits major barriers • leadership culture & hierarchy • central departments & bureaucracy • top-down approach to change  • digital skills & employee culture • poor / centralised tech • competing owners of topics • focus on tech, not the org & people
  16. 16. Here’s how I think you can overcome the biggest barriers…
  17. 17. … by helping create the two key foundations of the adaptive enterprise…
  18. 18. 1An Organisational
 Operating System that embodies core services in a shared platform 2A distributed
 Operating Model that enables evolutionary improvement
  19. 19. 1A new Organisational
 Operating System
  20. 20. (why organisations should be more like software)
  21. 21. FrameworkFrom vertical integration to pace layering, services, APIs
  22. 22. Platforms and a service-oriented architecture
  23. 23. Platforms and a service-oriented architecture
  24. 24. Iterative & agile approaches beat central planning
  25. 25. Connected software: more value from human interaction
  26. 26. Amazon: great example of ‘business as a platform’
  27. 27. But this is not just confined to tech firms
  28. 28. But this is not just confined to tech firms
  29. 29. Platforms are the most viable alternative to hierarchy
  30. 30. Digital Enterprise needs a better way to coordinate work
  31. 31. From puppets to actors…
  32. 32. Platforms: the stage on which people & teams can shine
  33. 33. SHARED SERVICE PLATFORM A service-oriented architecture for the organisation
  34. 34. Platform services as a base for app-like user experiences
  35. 35. Platforms enable new management methods
  36. 36. Platforms enable new management methods
  37. 37. Rules, processes, directives can be embedded in software
  38. 38. AI needs connected data and service platforms to work
  39. 39. Platforms for people and things to work together
  40. 40. ESNs, intranets, data and collaboration systems are a good starting point for creating the service layers required by the platform
  41. 41. 2A new distributed
 Operating Model
  42. 42. 38 Market V U C AVolatility: unexpected and unstable market conditions Uncertainty: lack of information to foresee changes Complexity: many interconnected parts and variables Ambiguity: casual relationships are unclear or unknown A VUCA future needs constant adaptation / evolution
  43. 43. How can we use our existing ESNs & intranets to become more adaptive?
  44. 44. A human sensor network for distributed transformation Sheeren mosaic 2 by Paul Wells
  45. 45. Existing adoption metrics alone don't tell us very much
  46. 46. Structure • Decentralised • Resilient • Adaptive & Emergent • Networked • Service-oriented Culture • Open • Customer-centric • Innovative • Experience-led • Passion & purpose Practice • Agile & Iterative • Data-driven • Collaborative • Task-focused • Podular © Postshift LLP, 2014 Target organisational capabilities, not adoption metrics
  47. 47. ‘Quantified self’ continual improvement for the organisation
  48. 48. Some practical small steps for owners of internal platforms
  49. 49. Gather and share stories of change Princess and the Frog by Joana Coccarelli
  50. 50. Recruit and animate an internal change agent network
  51. 51. Consider scale & intimacy: networks / communities / teams
  52. 52. Ask the org what new capabilities it needs at each level
  53. 53. Always be capturing ideas, pain points, needs & data
  54. 54. Write agile user stories for new organisational capabilities
  55. 55. Coordinate & measure change actions that target them
  56. 56. Do > Observe > Think: distributed, agile transformation
  57. 57. We need to go beyond simple communication use cases for internal systems and make the case that they should become part of the platform for a new organisational operating system
  58. 58. thank you for listening :) { }Please continue the conversation with us: • @leebryant / @postshift • lee@postshift.com • www.postshift.com POST*SHIFT
  59. 59. Additional image credits and references https://flic.kr/p/foH23g https://flic.kr/p/6ukbKf https://www.flickr.com/photos/davegray/6865783407/ https://www.flickr.com/photos/davegray/8614115016/ https://www.flickr.com/photos/mattpaish/8110496706/ https://developmentofwindows.files.wordpress.com/2014/09/windows3.jpg http://www.engadget.com/2015/10/04/daimler-self-driving-truck-test/ https://www.flickr.com/photos/peasap/655111542/sizes/l/ https://www.flickr.com/photos/81133120@N06/14911009117 https://www.flickr.com/photos/tinkerszone/3948664111/ https://www.flickr.com/photos/89850576@N08/8164065982/ https://www.flickr.com/photos/dplanet/94442623/ http://www.slideshare.net/RachelDavies/spa-conference-implications-of-conways-law https://www.flickr.com/photos/330thbg/14303493780/ https://www.flickr.com/photos/nate2009/12436753284/ https://www.flickr.com/photos/fabolous/15728923718 http://mergy.org/wp-content/uploads/wpid-IMG_20131030_082022.jpg http://intenseminimalism.com/2010/the-dot-loop-the-simplest-process-possible/ https://www.flickr.com/photos/blakespot/3029273217/ http://www.telegraph.co.uk/sponsored/china-watch/business/12006363/zhang-ruimin-haier-group.html http://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey- global-survey-results http://news.nationalgeographic.com/2016/05/financial-times-meet-the-cobots-humans-robots-factories/

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