Digital strategy must address business operations, not just IT infrastructure

The term "digital" can encompass everything from cloud computing, to social networking, to data science, to IoT.

Organizational theorist and management consultant Geoffrey Moore explains how enterprises can focus on a singular point of action to drive digital transformation. To do this, it’s important that businesses push beyond changes to their infrastructure models and into the realm of their operating models.

Show Transcript

0:05
you know when we talk about digital there's a lot going on
0:08
it's cloud
0:09
getting mobile computing social networks data science Internet of Things it's
0:13
important to get a focal point for action as a business you can't just do
0:16
everything all at once so how do you how do you sort this out and the framework
0:20
we found most useful is a hierarchy of models at the bottom of the hierarchy
0:25
it's the infrastructure model and that's where the technology actually gets
0:29
bought that's where it gets installed and it's it's where it gets implemented
0:32
and if all you do is just change things at the infrastructure layer of your
0:36
business what you will have done is you will reduce costs increased efficiency
0:40
which is a good thing but if in a world of digital transformation
0:45
it's important that you go beyond the infrastructure model and address your
0:49
operating model
0:50
this is what the world is actually changing this is what <operand> twenty
0:52
</operand> is changes is what Airbnb has changes what mobile banking mobile
0:56
mobile travels has changed and the goal here is to use the technology to
1:01
re-engineer your business processes to make them more modern
1:05
so we call this modernizing your operating model in order to keep up with
1:08
the digital transformation at the very top of the frame because it is a more
1:12
competitive advantage type of play when you say look with this new digital
1:15
infrastructure
1:17
maybe we should consider a new business model maybe the data about our our our
1:22
products is as valuable as the products themselves maybe we can do predictive
1:25
maintenance
1:26
maybe we can do predictive advertising particular selling
1:29
so that's a business model change and a business model level you're going to
1:33
change your operating model and that's going to require you to change the
1:36
infrastructure model
1:37
so that's the most dramatic change the most dramatic transformation
1:41
I think for most companies right now the operating model the middle layer of this
1:45
framework is the place to focus first make sure that's modern and then you
1:48
have a lot of alternatives going forward from there