To become more effective, enterprises must fast-track projects to digitally connect their organizations. Building value and providing compelling customer experiences at lower cost requires more than a quick technology fix; it demands a business and technological commitment to a new target operating model (TOM). This operating model should offer a way of running the organization that combines digital technologies and operational capabilities to achieve improvements in revenue, customer experience and cost. Enabling digital capabilities via the TOM is an ongoing process that requires DevOps skills and agile development techniques. This is easier to achieve with partners that have the requisite capabilities to help with the creation of new digital assets.
The organization does not feel transformed because it is not taking advantage of a multicloud or hybrid approach
One of the challenges of applying digital technologies is that companies often fall into the trap of using them to simply improve existing processes. Many organizations have already made some investment in cloud infrastructure and SaaSand have realized some business benefits. Yet, operationally, the organization does not feel transformed because it is not taking advantage of a multicloud or hybrid approach to transform the technology fabric, and it has not changed its operating model.
An organization’s target operating model is the operational manifestation of its corporate vision and strategy – what it wants to do, how it wants to do it, and all the other associated execution details. Digital-era TOMs should be focused on the complete reimagining of the customer experience, an exercise that often reveals opportunities to simplify and streamline processes across the enterprise, potentially unlocking massive value. This can only be achieved where there is strong collaboration between business and IT units and an understanding of how DevOps and agile ways of working change the technology conversation. The best way to keep technology aligned with digital business goals is to pursue a multicloud strategy within a dynamic TOM.
This Pathfinder looks at how to overcome cloud technology ‘inertia’ by viewing cloud not as a destination for ‘digital stuff’ but as a way to think and act differently as a business. Transformation of the IT function requires integrating a new TOM with the technology necessary to achieve it, thereby taking an architectural approach to a multicloud strategy that can keep the digital momentum growing within the IT department.
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