Moving at the speed of market
Moving at the speed of market
Insight

Moving at the speed of market

Your company is only as fast as its operating model. Accelerate your business by blurring the lines between business and tech.

Market speed—or running the enterprise faster to produce products and services at speed and scale—creates dominance in today’s digital world. To function at market speed and gain a competitive advantage, companies need to complete three distinct changes to their business: a digital transformation of their operating model, a cultural shift, and a new transformational role for the CIO.

Blurring the boundaries between business and tech

Some companies may have already begun their digital transformation. In recent surveys, we found at least two-thirds of organizations have at least five percent of their IT spend outside of IT, and nearly half have more than 10 percent.

To run at market speed, companies need to integrate IT with the business. Automation can complete many of IT’s traditional repetitive tasks and activities, freeing IT and its technologists to complete value-add activities and drive change. But change can be hard. While 95 percent of companies are focused on transformation, over 80 percent of executives who are leading those transformations wonder if their business can build a new digitally-enabled operating model. CIOs cite lack of skills, talent and resources as threats to successful implementation.

A new focus on the customer

As business and technology merge into a single operating model, the business becomes a “connected enterprise,” which aligns the back, middle and front offices to better serve the customer. This requires IT to measure its success based upon customer value, satisfaction, experience, retention, revenue and profitability. Focusing on these areas helps the organization achieve market-speed operation.

The creation of a connected enterprise signals a cultural shift that delivers an operating model with an end-to-end integrated value chain that is “decidedly human.” It enables IT to focus on creative, human-centric value-add activities that are critical to providing customers with an enhanced experience.

CIOs, authors of the new operating model

While IT’s new culture requires collaboration, empathy, and an openness to blend roles, it also demands a transformational CIO who will not just embrace new concepts and principles but author and champion them in the new operating model. To redefine the relationship between people and what they do, the CIO needs to become a forward thinking, servant leader, able to develop people across the organization as technologists. These employees will no longer be confined in silos. Armed with the skills necessary, they’ll rise above traditional roles to self-organize and deliver for the customer. 

Enabling people to make decisions, experiment and innovate, without the fear of the failure, will help the CIO find the talent necessary to succeed. Sharing and integrating teams, skills and people needs to take priority over the organization’s reporting structure in order for the business to embrace its new operating model.

Where to begin

Driving integration and moving at market speed challenges the business and IT to create a strong procedure that includes taking advantage of automation to break down barriers. Building a connected enterprise and embracing a new culture toward openness and integration begins with the CIO shifting focus to the customer.

Learn more about achieving market speed operations in the Future of IT podcast “The Market Speed Organization.”