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How a Business Operating System Leads to Digital Transformation Success

For many organizations, digital business holds the key to future growth; however, the challenges associated with the full integration of digital business can be overwhelming and costly. To avoid becoming a digital business in name only, CIOs need to be able to deliver on the chosen corporate strategy. It is not enough to be in possession of a portfolio of innovative ideas and projects—digital business requires delivering results in spite of the rapidly changing internal and external environment.

A Business Operating System--the business equivalent of an in-car navigation system--helps you by providing a map for the design and visualization of your journey. Your progress along the way is provided by an enterprise performance management framework, which aligns a diversity of measurement schemes to indicate where you stand. The real-time data that comes from the business operational intelligence component of the BOS creates situational awareness to let you know if there are any traffic jams or other hazards impeding you on your chosen route. The dynamic aspect of the BOS gives you the opportunity to recalculate your route and take a different, more efficient path to your desired destination.

A Tale of Two Companies

Two companies competing for market share in the health insurance industry noticed that increased access to digital technologies has altered the expectations of the customer. Both companies aimed to win over market share; both companies understood the need to invest in innovation and customer satisfaction. Company A decided to invest in a Business Operating System. Company B did not.

From the new strategy to win market share by putting the customer first, Company A derived a number of objectives such as facilitating self-service anytime, anywhere. When Company A proceeded to align internal operations with their strategic objectives, it became apparent that this global health insurance provider employed a significant number of people whose sole purpose was to answer the phone and direct them to the information they needed. Additionally, it became clear that Company A possessed a number of different legacy systems that covered the capabilities they desired to help them achieve their goal to increase customer satisfaction. Therefore by creating insight into their current and desired situations, Company A was able to save money by reusing existing systems & reducing unnecessary personnel, while increasing customer loyalty by offering more self-service opportunities.

Meanwhile, based on the conviction of someone near to the CIO, Company B began investing aggressively in the latest technologies that promised to bring increased focus on the customer. Not only did the purchase of new technologies have significant financial impact, but it came with a backlash of low user adoption. With little insight into who was engaging with their customers, and with what systems, Company B made little headway on its goal to become more customer centric.

Just six months into their transformations, both companies were hit with new regulations regarding the storage of sensitive customer data. Because Company A was using a business operating system in which all processes for handling customer data had been clearly defined and communicated to all their 22 global locations, the audit was straightforward. In spite of Company B’s investment in the latest technologies, their failure to document and communicate their processes for handling sensitive data left them vulnerable to massive fines.



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