- Organizational challenges are hampering digital transformation (DX) initiatives.
- The organization’s existing digital factory is failing to deliver value.
- Designing a successful digital factory is a difficult process.
Our Advice
Critical Insight
To remain competitive, enterprises must deliver products and services like a startup or a digital native enterprise. This requires enterprises to:
- Understand how digital native enterprises are designed.
- Understand the foundations of good design: purpose, organizational support, and leadership.
- Understand the design of the operating model: structure and organization, management practices, culture, environment, teams, technology platforms, and meaningful metrics and KPIs.
Impact and Result
Organizations that implement this project will draw benefits in the following aspects:
- Gain awareness and understanding of various aspects that hamper DX.
- Set the right foundations by having clarity of purpose, alignment on organizational support, and the right leadership in place.
- Design an optimal operating model by setting up the right organizational structures, management practices, lean and optimal governance, agile teams, and an environment that promotes productivity and wellbeing.
- Finally, set the right measures and KPIs.
Accelerate Digital Transformation With a Digital Factory Research & Tools
Start here – read the Executive Brief
Read our concise Executive Brief to understand the importance of a well-designed digital factory.Besides the small introduction, subscribers and consulting clients within this management domain have access to:
- Accelerate Digital Transformation With a Digital Factory – Phases 1-3
1. Build the case
Collect data and stats that will help build a narrative for digital factory.
- Digital Factory Playbook
2. Lay the foundation
Discuss purpose, mission, organizational support, and leadership.
3. Design the operating model
Discuss organizational structure, management, culture, teams, environment, technology, and KPIs.
Workshop: Accelerate Digital Transformation With a Digital Factory
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
1 Build the case
The Purpose
Understand and gather data and stats for factors impacting digital transformation.
Develop a narrative for the digital factory.
Key Benefits Achieved
Identification of key pain points and data collected
Narrative to support the digital factory
Activities
1.1 Understand the importance and urgency of digital transformation (DX).
1.2 Collect data and stats on the progress of DX initiatives.
1.3 Identify the factors that hamper DX and tie them to data/stats.
1.4 Build the narrative for the digital factory (DF) using the data/stats.
Outputs
Identification of factors that hamper DX
Data and stats on progress of DX
Narrative for the digital factory
2 Lay the foundation
The Purpose
Discuss the factors that impact the success of establishing a digital factory.
Key Benefits Achieved
A solid understanding and awareness that successful digital factories have clarity of purpose, organizational support, and sound leadership.
Activities
2.1 Discuss
2.2 Discuss what organizational support the digital factory will require and align and commit to it.
2.3 Discuss reference models to understand the dynamics and the strategic investment.
2.4 Discuss leadership for the digital age.
Outputs
DF purpose and mission statements
Alignment and commitment on organizational support
Understanding of competitive dynamics and investment spread
Develop the profile of a digital leader
3 Design the operating model (part 1)
The Purpose
Understand the fundamentals of the operating model.
Understand the gaps and formulate the strategies.
Key Benefits Achieved
Design of structure and organization
Design of culture aligned with organizational goals
Management practices aligned with the goals of the digital factory
Activities
3.1 Discuss structure and organization and associated organizational pathologies, with focus on hierarchy and silos, size and complexity, and project-centered mindset.
3.2 Discuss the importance of culture and its impact on productivity and what shifts will be required.
3.3 Discuss management for the digital factory, with focus on governance, rewards and compensation, and talent management.
Outputs
Organizational design in the context of identified pathologies
Cultural design for the DF
Management practices and governance for the digital factory
Roles/responsibilities for governance
4 Design the operating model (part 2)
The Purpose
Understand the fundamentals of the operating model.
Understand the gaps and formulate the strategies.
Key Benefits Achieved
Discuss agile teams and the roles for DF
Environment design that supports productivity
Understanding of existing and new platforms
Activities
4.1 Discuss teams and various roles for the DF.
4.2 Discuss the impact of the environment on productivity and satisfaction and discuss design factors.
4.3 Discuss technology and tools, focusing on existing and future platforms, platform components, and organization.
4.4 Discuss design of meaningful metrics and KPIs.
Outputs
Roles for DF teams
Environment design factors
Platforms and technology components
Meaningful metrics and KPIs