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Adapt to survive

OVERVIEW

With growth elusive across industries and digital disruptors biting at their heels, traditional players are developing disruptive business models to compete. Yet many struggle because they do not fully align their operating models with these new disruptive business models.

To become more agile, traditional enterprises need digital operating models that integrate business, operations and technology into autonomous businesses-within-the-business called domains. These domains boost agility so companies can be truly disruptive in new areas while also supporting their traditional lines of business.

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KEY FINDINGS

Digital operating models need to be as adaptive and fluid as today’s market landscapes are:

  • Change is non-negotiable. New business models call for capabilities that radically change operating model requirements. But less than one-quarter of executives think their operating model can respond to changing market conditions.

  • Domains drive new value. Like independent businesses-within-the-business, domains bring together business, technology and operations to address the unique needs of customers, channels, products and revenue models.

  • Scale is the missing link. Domains make traditional players more agile and competitive in markets dominated by disruption. But only if companies go beyond organizing and implementing domains in limited or isolated pockets of the business.



75% of executives acknowledge that digital operating models must be flexible, dynamic and customer centered.

RECOMMENDATIONS

To evolve to digital operating models, companies should:

  • Define domains with precision. Companies must smartly bring together capabilities, assets and authority from across a disconnected enterprise.

  • Be deliberate about leadership. Companies should appoint a domain owner who is responsible for the end-to-end functioning of the domain.

  • Diffuse culture shock. Companies must support difficult conversations, new collaboration and agile ways of working.

  • Build the future workforce. Domains will require upskilling of current employees as well as gathering new talent via today’s workforce.

LEARN MORE ABOUT ACCENTURE STRATEGY
Companies risk 10-20% revenue growth without digital operating models to drive agility at speed.

AUTHORS

Nicholas Bayley

Nicholas Bayley

Managing Director – Accenture Strategy,
Technology Strategy


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Diana Bersohn

Diana Bersohn

Managing Director – Accenture Strategy,
Technology Strategy


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Aamer Chaudhry

Aamer Chaudhry

Principal Director – Accenture Strategy,
Technology Strategy

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Steve Poniatowski

Steve Poniatowski

Principal Director – Accenture Strategy,
Technology Strategy


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