The technological sea change for businesses is fundamentally transforming what “services” mean, and how to profitably deliver these services to customers amid the so-called digital transformation has become a major challenge as a result.

Some of the biggest promises of the tech-led digital transformation are the possibility of revolutionising customer experience, realising new opportunities, and creating new revenue streams, all while improving organisational efficiency and driving costs downwards.

A trend unlike any other

These promises make it hard to ignore the potential value of digital transformation for businesses, and it is a trend that all who wish to survive in the long-term are having to face.

The trouble is that while businesses are somewhat adept at facing new trends, digital transformation is a trend unlike any other due to its widespread impact; there is no magic bullet or one-size-fits-all approach.

Facing it creates significant challenges for businesses that are so widespread, in fact, that it leads to 70% of all digital transformation initiatives failing to meet their goals. This is especially prevalent in businesses with siloed departments that cannot, will not, or do not move in unity.

Nowhere is this more evident than in IT.

While traditional IT could once upon a time put legitimate pressure on business leaders to slow down and control risks, the risk-averse rarely come out on top in the era of digital business. Time is critical in most markets, and slow-to-adapt IT may represent a huge risk in itself as a result.

In many cases, IT departments fail to recognise this, and due to the lack of unified understanding between IT and organisational leaders, the organisation begins looking to external solutions to address their digital transformation challenges and capitalise on opportunities.

Rising to the challenge

An approach to digital transformation without internal unity where the assumption of stakeholders is one along the lines of, “It’s the CTO’s job” or “That’s for X department to figure out so we don’t need to worry about it” is one that is doomed to fail.

Equally doomed to fail is an approach that views operational changes as an optional bolt-on to your organisation’s digital transformation goals or assumes or hopes for smooth cooperation across siloed functional groups without giving it anything more than a passing thought.

So, how can businesses achieve their digital transformation goals without being held back by fragmented incentives and accountabilities?

By starting with an understanding that digital transformation is about far more than technology; it is also about looking at your operating models that sit at the core of your organisation and making sure they align with digital goals.

What is an operating model?

An operating model defines how a business’s people, processes, and technology are organised to achieve strategic objectives.

It is essentially a blueprint that shows the organisation who is responsible for what, who is doing what, and when to create and deliver value. It contains many elements that affect everything from strategy to tools and processes, and it acts as the bridge between strategy and operations. A strong model is key to successful operations for any business.

Modern digital operating models help organisations achieve strategic goals by placing the customer at the core and connecting the dots between organisational leaders and tech-led operational departments to ensure that digital comes first. Digital operating models can therefore better serve the modern customer because key processes and infrastructure have been realigned to support them.

Models that prioritise digital are more effective at delivering continuous improvement because IT and organisational leaders work more closely together from concept to implementation, ensuring that expectations are met.

Changing IT operating models

While your organisation’s overarching operating model acts to serve your customers, your IT operating model is different. It is a combination of your organisational structure and the processes that cover your IT department’s day-to-day. It affects the whole IT lifecycle from strategy and project management to infrastructure and support services. In essence, it:

It is essentially how the IT segment of your organisation is set up to serve its primary user, the organisation itself.

Just like your other organisational operating models, your IT operating model is not a static entity and shouldn’t be treated as such. It needs to evolve according to the changing needs of your business, and this is why Chief Information Officers (CIO) and other key IT executives are facing constant pressure to optimise and adapt them — and the savviest are leveraging digital transformation to do it.

How digital transformation is helping to lead this change

Digital transformation has changed the role that IT plays in modern organisations. IT is now much more integrated than it ever has been in the delivery of business value.

Organisational leaders that recognise this are therefore reinventing their IT operating models by using digital transformation as a tool to determine how tech consumer groups interact with IT, identify how changing business conditions might impact the use of these tech services, and optimise their IT operating models in response by using the information that they gather.

Fundamentally, any changes made to your IT operating model should be geared towards breaking down silos and improving the delivery of technology services and, consequently, the overall satisfaction of stakeholders with IT services.

While there is a lot that can be said for digital transformation, it is more than just a buzzword. It is a lucrative opportunity for businesses of all shapes and sizes to reinvent their IT operating models and win more in the digital age.

To take full advantage, you need a partner that will help you transform your IT operating model and realise its full, untapped potential by matching it with your business’s long-term strategic goals.

If you’re ready for your IT to start bringing innovation to your business, start by talking to one of our experts today.