Operating model transformation
A future-fit operating model transformation based on five interconnected design elements: dynamic ecosystems, digital DNA, talent flexibility, innovation platform, and enduring purpose designed to support both immediate and long-term value amid market disruptions and changing consumer preferences.
Your business challenge
Consumer products companies’ operating models must support a portfolio of existing and evolving business models. It should help you move faster, change direction more easily, create different partnerships, make smarter use of data, and deploy the capabilities and talent you need, where they can make the biggest improvement to performance.
So, how do you optimize the operating model you have today, while building what’s right for the future?
- How do you make the fundamental shift from enterprise-centric operations to one optimized for a dynamic ecosystem of integrated partners?
- How do you integrate insights across the value chain to drive better and faster decision-making?
- What is the right mix of organizational capabilities required to deliver future relevancy?
- How do you embed innovation into your company culture?
- How does your purpose, reflect and deliver on, the diverse needs of your stakeholders?
A redesigned operating model will help you deliver your existing business model while developing and supporting the broad spectrum of new strategies and innovations that future success requires:
- Consumer intimacy: Increased consumer understanding will help to proactively anticipate market needs and create long-term relationships with your consumers.
- Data-driven decision-making: Achieve lower cost of operations by optimizing current processes and systems and increase utilization through capabilities pooling. Get to market faster with new products through established platforms to ideate, test, pilot and scale grounded in data and analytics.
- Capability access: Market-based collaborations are enabled through internal and external ecosystem capabilities and trusted information exchanges. Increased agility will develop from the right mix of human, machine, and ecosystem capabilities.
- New revenue streams: Leverage in-house and ecosystem partners to develop new and multiple business models. Achieve long-term value through building and activating a pipeline of ideas aligned with the purpose of your business.
Solution features and functionality
We help you create the vision you need, assess where you are and navigate your way forward.
The transformation journey to the right future-fit operating model for your organization must be aligned to five key design elements that will foster profitable agility and scalable innovations, enable real-time decision-making, and reimagine how your people work, with your organization’s purpose at the core.
Each design element should not be considered in a vacuum. Integrating them will be critical to building an operating model that is adaptive and supports continuous pivots in the business.
We’re working with leaders across the consumer products industry to redesign their operating models and build them faster. Aligned to five interdependent design elements, your future-fit operating model will support the plurality of new business models that sustained success requires.
Through internal workshops and executive interviews, EY identified how operating models need to evolve to serve multiple future business models. EY's framework was stress tested with a global executive survey, undertaken in conjunction with MIT SMR Connections, of 370 consumer products leaders to assess their operating model priorities and transformation journey progress. This enabled us to develop a roadmap and maturity assessment that identifies what capabilities companies would need to develop to future proof their operations.
The solution is built on five integrated design elements (Dynamic Ecosystems, Digital DNA, Talent Flexibility, Innovation Platform and Enduring Purpose) that collectively transcend existing functional siloes and help enable a flexible enterprise that will drive value by serving multiple strategic priorities and evolving business models.
The framework can be used to assess where a company is in its transformation journey and where it needs to be, with an identified roadmap that can be adapted to suit differing levels of maturity. A personalized framework will reflect individual company priorities and, through a combination of workshops and capability building EY can leverage the right suite of solutions to help enable companies to develop and execute a clear transformation roadmap.
Traditional transformation frameworks are typically developed for functional areas of business or through an operational approach that looks at people, process, technology and governance. However, these approaches can create siloes and risk anchoring the business in the present rather than the future. EY has developed a framework that focuses on the capability areas that will need to be built across the enterprise to enable the operating model to continually evolve with new business priorities.
By applying the five design elements as a framework for transformation EY teams can help:
- Enable companies to deepen their understanding and relationship with consumers
- Lower operational costs by integrating functions more effectively
- Build new value pools by working closely with their network of ecosystem partners
- Drive long-term growth by using a consistent operational structure to serve multiple evolving business models
Our latest thinking
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