[MBA China (Reuters) - take a minute, let's look view Schneider Electric Chairman and CEO Jean-Pascal Tricoire (Jean-Pascal Tricoire) brings new opportunities of digital technology.
“The connection is no stranger to us. We have been connecting our products to the Internet since 1995. But today, we are connecting everything that is connected to the network, from the power plant to the plug. In a word, All products will be linked together, all data will come together, and we use analytics to automate decision-making or assist decision-making. In the past, we used to focus on providing much-needed projects and services, but now Our online service is available 24/7. This means we can create new value, develop new capabilities, and provide many new services."
At the 2016 World Economic Forum in Davos, Zhao Guohua told the audience about Schneider Electric's transformation of its R&D organization to add software and data analysis products and services to meet customer needs. He also mentioned that the company has established an independent department to provide digital solutions for Schneider Electric and third parties. The development of software and digital solutions requires companies to change the content of research and development and the way they develop. “In the past, we usually set the specifications first and then spent two to three years developing the products. Now we have to put the products on the market quickly, even if it is a minimum viable product (MVP).â€
He also talked about partners: "When we started to digitize, we learned about connectivity and software. But when we started to introduce cloud concepts, we found that individuals couldn't do everything. The world is particularly advocating partnerships. The biggest gambling is to pick the right partner. Your success depends not only on you, but on the ecosystem you choose."
Founded in 1836, Schneider Electric has now adopted the digital business model in the same way as the newly established high-tech companies of the 21st century. In the process of moving toward digitalization, companies have changed the design of business models in many ways. Management decided to connect as many products as possible to the Internet, add information-based services, adopt an agile product development process, build a new digital service organization, and update the interaction between sales and customers. A long-established company has successfully transformed into a digital enterprise.
Many companies are facing digital disruption and are also considering digital transformation, hoping to use digital features to develop business models and roadmaps. In fact, they can learn a lot from the traditional companies that have already implemented digital transformation, such as Schneider Electric.
Some established companies have even improved before the digital wave emerged.
In order to keep pace with the market, the first generation of network companies redesigned their own business and operation models, which is also very valuable. The experience of these companies provides a new perspective for transformation and digital organization design, and companies that are about to commit to digital reforms can learn from them.
Wide range of designs
The Boston Consulting Group (BCG) and the Massachusetts Institute of Technology (MIT) Information Systems Research Center (CISR) collaborated on a two-year project focused on the design of digital organizations. We conduct holistic and individual research on more than 40 companies across multiple industries. Some of these companies, such as Schneider Electric, have been around for hundreds of years, while others were founded in the 1980s or 1990s. The youngest company in our research sample, Salesforce, was founded in 1999.
In terms of business and organizational design, we have a wide range of companies. One type of enterprise, such as video game maker Valve, is a flat organization, which is really flat. It has no boss or title. Employees use 100% of their time for independent projects on a group basis.
However, every member of the group can clearly know what they should do and what should be done within the specified time. As stated in the Valve employee handbook, “Although Valve employees do not have a fixed job description or limitation of liability, they always have a clear understanding of their current position at work.†Together with their colleagues, they effectively outline their own Job responsibilities are exactly in line with the goals of the group. As the needs change, the content of the work will change, but the temporary structure allows everyone to reach a consensus and know what they can get from each other. If someone moves to another group or the focus of the group changes, then everyone can switch to a completely different role based on new needs.
The other type of business operates on a highly formal, well-defined business system that has a very specific description of the operating model. Such systems have specific goals, directions, plans, guidance, role descriptions, policies, meeting schedules, and performance metrics. The Procter & Gamble Integrated Work System regulations even detail how long the manager must spend on the factory floor each day, the schedule of the shift schedule, and the hard tasks of the line operators.
Some commonalities of the digital wave
The goal of the BCG-MIT collaborative research is to understand the secrets of successful adaptation of various companies to the digital economy.
We listen to companies repeatedly mentioning how they change products and services, and how these changes have affected business and operational models. We also want to know how companies design the next round of "release." We have raised the following questions:
How can companies design to become more digital? What special management measures are needed to assist in redesigning for digitization? What aspects of the operating model need to be changed if the company wants to successfully digitize?
The answers we get are varied, but there are a few things in common.
The first thing in common: Since the 20th century, most of the successful companies we have studied have undergone important business transformations in some form, most typically redesigning the internal business model.
The company has separated many of its actions from the business and local offices and implemented them on the new service platform; designed and deployed global business processes under the premise of unified financial, human resources, customer relationship management and supply chain software packages; A product-oriented business unit – in many cases, shifting sales and marketing from business to industry or geographically dominant. The company also outsourced or transferred part of its business to the offshore holdings.
The second common denominator: all transformations are concentrated in the work systems within the enterprise. Many transformation project leaders use the “personnel-process-technology†framework to manage and coordinate change. At the employee level, the company redesigned its internal organizational structure, position, performance measurement and incentive system. The core business processes were changed to an end-to-end format that increased efficiency and, in some cases, facilitated outsourcing. In the technology world, enterprise design has changed the core business applications, databases, enterprise intelligence tools, and technology infrastructure.
Although these companies have transformed with the help of information technology, they do not necessarily need or take into account the emerging digital technologies, such as social networks, mobile communications devices, big data analytics, robotics, cloud computing and the Internet of Things. The main thing is that customer products and business models have not changed. So unsurprisingly, in 2012, many business leaders who had just undergone transformation (or undergoing transformation) were surprised to find that they had to make another radical change in order to become a digital company.
A big difference and advantage for them is that successful internal transformation provides them with a solid operating platform, based on which it is convenient for enterprises to establish digital services. Companies that are not involved in the first round of transformation need to change in more ways as soon as possible.
Five levels of digital enterprise
For the most part, the companies we study use new digital technologies in two ways.
In the first place, they apply digital technology to products and services. For example, Schneider Electric, John Deere, and Schindler Group, a company that manufactures elevators, elevators, and electric trails, can add networking devices such as sensors, microprocessors, radios, and GPS locators to their products. Provide customers with a variety of information-based services, analysis and insights. In some cases, informational data can facilitate the birth of new disciplines (such as precision agriculture) and new ecosystems (such as customer communities that provide answers to common questions).
In the second area, interactions with customers, employees, business partners, suppliers, investors, and regulators are increasingly digitized. For example, the medical platform KaiserPermanente can be restricted by location, and patients can contact doctors via the Internet no matter where they are, without having to communicate face to face.
The application of digital technology in these two aspects seems to be simple, but in fact each aspect requires a large number of design changes to the business and operational models.
Indeed, the companies we studied have clearly changed in five areas: customer experience, products and services, ecosystems, control and adjustment mechanisms, and ways of working.
1. Customer experience
For the most important business changes, many companies will mention the need for a more digital customer experience. In fact, in many cases, companies are beginning to redesign their business and operations models by reimagining the customer experience. Bernard Tyson, CEO of KaiserPermanente, another company at the Davos Forum, talks about the far-reaching changes that companies have made using analytics to increase customer engagement. These steps include providing online medical records, increasing transactional capabilities, and ensuring patient interaction with doctors.
The following features shape the way digital businesses handle customer experiences:
(1) Digital company considers the complete customer experience process
Design changes include the entire process of customer experience (understanding, purchasing, provisioning, using, billing, billing, and support). This involves all business units, products and service lines, as well as channels. If the partner ecosystem can provide such an experience, then the design changes can be applied to all participants.
(2) Digital companies integrate digital and real-world factors
Design objects include a full digital experience (such as watching videos on Netflix) and a semi-digital semi-realistic experience (such as re-downloading prescriptions using a mobile app and then going to a pharmacy to buy medicine).
(3) Customer experience has become the main driving force for product and service design
Companies actively coordinate product and service design with customer experience design. Some companies, such as the financial services company USAA, have realigned all product and service portfolios, transforming portfolios from product (such as insurance policies and mortgages) to customer life events (such as the birth of a child or moving to a new home).
(4) Digital companies rely on rapid access to customer data
All data about the customer and customer experience (individuals and similar customer segments) can be shared internally, providing a support for tailoring the customer experience. The data includes previous encounters and interactions, products and services used, and information from third parties such as partners or social media.
(5) They use the most advanced digital interface design
Regardless of the industry, from the customer's point of view, the simpler and smoother the digital experience, the better it can reach the level of Amazon and Apple. As a result, digital companies need to continuously improve all devices, including mobile phones, tablets, computers, all-in-ones, set-top boxes, and in-vehicle multimedia systems.
(6) Digital companies make full use of the media and the community
Digital companies create customer communities on social media such as Facebook and LinkedIn, allowing customers to interact with each other. Companies can learn and collect data from such interactions. Some companies build specific communities for their customers: for example, Intuit creates TurboTaxAnswerXchang for customers and John Deere provides Youtube videos.
2, products and services
Businesses pay more attention to product and service design than the customer experience. Today, complex mechanized physical products (such as agricultural equipment, automobiles, and electronic management systems) install sensors, microprocessors, and data storage devices that can be accessed online or by wire. Enterprises have expanded their business, adding remote control and services based on data collection and analysis. Many companies are shifting from selling products to selling solutions.
Think about John Deere's 8R/8RT series tractors. The ExactEmerge 24-hour planter can move 10 miles per hour, sowing 80 seeds per second, and can strictly follow depth and spacing requirements. The tractor has 20 processors and more than 6 million codes. The planter has 77 processors that can send data to the tractor cab where it can be sent to the John Deere Run Center on the Amazon AWS Cloud Platform.
Tractor drivers and remote farm managers can make the necessary adjustments based on real-time data. Communication between machines can also be achieved to automatically coordinate farm operations. “The ability to acquire data at any lower cost, faster speed, wider range, larger scale, and flexibility gives us a significant opportunity anytime, anywhere.†John Deere, former vice president Patrick Pincus Patrick Pinchester said. “I call it the agricultural technology revolution. When you break through the barriers to agricultural technology, you seize the opportunity to truly advance agriculture.â€
Ecosystem design is another important aspect of digitalization. Amazon, Yibei and Apple were among the first companies to realize the power of the ecosystem. Schneider Electric executives realized they needed to design a partner ecosystem. The ecosystem includes customers, suppliers, business partners and researchers.
Intuit was born in 1983 as a “digital†company. It launched a multi-year transformation in 2011, creating a new customer ecosystem operating model based on interconnected services. Michel Yakovone, chief architect and senior vice president, described the next change: “The company started to upgrade from desktop to software (SaaS), and now it’s clearly moving towards cloud services, and we’re following Realize that it is no longer possible to succeed only by cooperation between business units.
We need all major customer centers and organizations to work together. This is really, very important. We believe this will ultimately drive business growth. So in the past four and a half years, we have switched from so-called institutional enterprises to ecosystems. The core members of this ecosystem are three types of stakeholders: our small company customers, accounting and consumers. This is a complete transformation. â€
By 2015, Intuit will connect customers, customers and accountants, customers and taxpayers through the Intuit community, question and answer mechanisms and blogs. Intuit now uses these services as a platform, coupled with its own software products, to jointly promote the construction of the ecological environment. Knowledge sharing in the community has also helped the company improve its "network effects."
John Deere’s leaders recognize that connecting their machines and operators with other software not produced by the company can greatly help farmers improve their productivity. SaaS agricultural applications, such as the Climate Cloud, are already online, in addition to topical big data applications such as weather forecasting, genomics, and agronomic research. The company expands its own products and allows its own software to serve third parties, ultimately forming a more comprehensive service plan. So its ecosystem includes farmers, John Deere dealers, software companies, seed and fertilizer manufacturers, and university researchers.
4. Control and adjustment mechanism
Many of the companies we study have standardized planning, control, and adjustment mechanisms to formulate comprehensive strategies, set goals, and ensure that the decisions of the various levels of the company are coordinated with each other and with the corporate strategy. Since today's companies no longer rely on levels to implement command and control as they have in the past, the normative mechanisms need to adapt to a flatter, more collaborative work environment.
Beginning in 1999, Salesforce began a management model called V2MOM (Outlook, Value, Method, Obstruction, and Evaluation Criteria) that guides management in achieving goals and helps employees focus on the company's strategic goals. For your own goals and expectations.
Mark Benioff, one of the founders of Salesforce, developed V2MOM and considers it a secret management weapon that can help companies achieve high levels of organizational coordination and communication during the extremely fast growth phase.
In his book "Behind the Clouds" he wrote: "At Salesforce.com, every step of our organizational management is based on our V2MOM management model. It is our core operating method; it allows us to define our own goals. And achieve the goal through effective organization; it takes into account our constant reform motivation. The collaborative architecture is particularly effective in a high-speed development environment. In the context of rapid development, we must maintain a close and unified development direction. Every company is challenging, but V2MOM is the glue that binds us together."
As the CEO of Salesforce, Benioff will develop the company's most advanced V2MOM based on the management team's reaction. His direct reporting team will have its own V2MOM, which is in sync with Benioff's own V2MOM. In the end, this will extend to everyone - everyone has their own V2MOM. The method and evaluation criteria at each level are the result of communication between the employee and the supervisor. In general, the major decisions about the next step of development are made by the highest level of the company, and how to implement it is determined by the entire company.
5, working methods
Several of the companies we have studied have been specifically reformed in terms of working methods, which has a lot to do with corporate culture and institutions, as well as business process reengineering. The way of working refers to the way in which employees within the company cooperate, rather than specifically referring to inputs, activities, turnaround time or output.
Speed ​​is a key factor for companies to consider: digital companies are moving fast. In large integrated companies, this means reducing internal levels, and achieving level equality depends on multi-party collaboration. For many companies, this is a major change in institutions and culture that is difficult to implement. Corporate executives need to give the right guidance, establish basic boundaries, and empower employees to achieve the best results through collaboration.
The most common new approach is to adopt a part of the agile methodology. Agile work methods include cross-disciplinary teams, short-term sprints to achieve certain valuable goals, new roles such as “agile coaches†and “product ownersâ€, and other different concepts of concepts and methods of working with traditional methods. Especially in big companies.
We have observed that many large companies have adopted agile concepts in general rules rather than specific approaches, with a particular emphasis on integrating agile teams with other parts of the company. The success of large companies in adopting the agile concept is impressive and impressive. Enterprise productivity has tripled; employee engagement measured in quantitative surveys has also increased significantly; new product performance can be sold in weeks or months instead of quarterly or annually; innovation rate increases; product defects or The number of rework is reduced. As companies begin to apply agile principles beyond software development, agile is part of a sustainable development.
Another goal of changing the way we work is to increase employee collaboration. For example, Salesforce encourages everyone to collaborate through digital and real-world approaches. The organization of the enterprise is a traditional pyramid type, but it runs like a flat organization. People don't want to work in command-and-control organizations. The most advanced three or four layers should play the role of the network. All employees can work together to help each other achieve their respective V2MOM goals.
John Wookey, executive vice president of industrial applications, said: "I report to the president, but I will also report to the product manager because I am building products. I meet with those who run the service every two weeks. The staff of my team will also attend some work meetings of the sales department. I will attend the weekly meeting of the cloud service executives. Our company has a hierarchy, but in practice it is more like a work network."
Lean methods and concepts also have an impact on the company. Although it is already a big business, Intuit will also adopt the "lean startup company" way of working. Eric Reese writes in detail in his book Lean Startup: How Entrepreneur Today Can Use Continuous Innovation to Create a Completely Successful Business, This Way of Working “Provides for Creating and Managing Startups A scientific approach that can bring products that customers want to market faster."
Several of the companies we study focus on changing their corporate culture. At the beginning of Intuit's transition to an ecosystem-based enterprise, CEO Brad Smith decided to “renew†Intuit's corporate culture and values, which helped focus on change. One of the values ​​he emphasized is a win-win situation. This is very different for Intuit. Intuit has previously advocated winning in the business sector. Today's win-win values ​​are more in line with the ecosystem they want to build and support across departments and product lines.
Every month, Smith will sponsor an Intuit forum, and 400 top-level leaders will participate in this 90-minute video conference. Each meeting includes a CEO speech—Smith has a guiding opinion or a recent experience from outside. After he finished speaking, he was a senior comment on the company's performance, involving key stakeholders—employees, customers, partners, and shareholders—and carefully reviewed one of the company's six priority strategies. Each forum will inspire the sense of responsibility and responsibility of the entire company, and the 400 leaders will pass on the spirit to their team.
At the Davos Forum, Mark Benioff referred to Klaus Schwab's book The Fourth Industrial Revolution and told the audience that the fourth industrial revolution began with a very important point — - That is trust. He believes that employees need to be aware that unless the customer trusts the company, they will not buy the company's products.
He stressed that this will be a huge change. “You will re-establish the level of trust between you and your employees, between you and your customers, between you and your key stakeholders, between you and your shareholders... between you and your partners. This is a The corporate culture revolution above trust. Because when we talk about trust, talk about development, and talk about innovation, we must follow this order."
How to implement digital business design
There is no such thing as a correct digital business design. However, because digital companies are more integrated and automated than traditional ones, their design must be more explicit, even if the design is just as helpful as setting guidelines for consumer-centric innovation.
Digital companies rely heavily on software to promote end-to-end seamless experiences; store, process, analyze data; bring new products and services to market. Therefore, companies need to carefully consider the various types of interactions that will be used for integrated systems—such as computer, enterprise-resource-planning software protocols, refineries, and transportation systems.
The first step in designing a digital enterprise is to have a digital business strategy. As digital technology continues to offer a range of new opportunities, the best digital strategy needs to have a clear direction while retaining a response to the external environment and expected changes. Therefore, digital business strategies are more forward-looking than traditional business strategies.
For example, Intuit re-defined itself: from the beginning it was a desktop software company with multiple independent products, but now it provides connectivity services for individuals and small businesses. Management uses cloud computing, remote technology and data analytics capabilities to implement the company's current strategy: “We make business life easier.â€
Similarly, John Deere is also transforming from a company that sells and services large equipment to a company that "is committed to serving things that are closely tied to the land." John Deere developed this strategy by recognizing the opportunities offered by new technologies and data-centric capabilities that can help farmers find more efficient ways to grow.
These forward-looking strategies provide leaders with the direction to reach consensus on the most valuable digital technology applications. They help everyone in the business realize the opportunity and realize their vision, avoiding the whirlpool of technology for the technology itself.
Once a company is engaged in a digital strategy or vision, management must identify and implement an operational model that can help the company achieve its strategy, including traditional considerations such as policies, processes, organizational structures, and performance assessments, including us. Design aspects discussed: customer experience, products and services, ecosystems, control and adjustment mechanisms, and ways of working.
A particularly important point is the establishment of a clear accountability mechanism that regulates the delivery and operation of software modules that enable interoperability and big data management. As software becomes the driving force of the enterprise, companies need talent and good processes to manage complex integrated systems and huge amounts of data. A well-designed operating model can make it easier for companies to develop or acquire key skills for centralized management.
Some companies have a high degree of unity and concentration in designing extremely detailed operational models. These companies generally have a central team responsible for design change. Some central teams are senior leadership teams, while others are transformation or business architecture teams. Techniques for designing operational models include drawing business design blueprints and long-term planning routes.
Other companies will lead hundreds of (or even thousands) managers and experts through high-level policies and guidelines that are responsible for small design changes within the organization. The companies we study take steps to ensure transparency, consistency and collaboration in the way we work. They will also ensure that local design decisions are aligned with the company's overall strategy, identifying and quickly resolving conflicting design decisions.
Regardless of the approach taken by the company, the senior leadership team needs to clarify the company's strategy and operating model and encourage everyone in the company to do their part.
Schneider Electric's chief information officer, Elway Kourell, was asked to raise teamwork awareness when designing and improving new operating models. Kurel does not have a large team of architects or designers. He only works with two people, and the three play only a catalyst.
He explained his behavior like this: "The reason I don't want the team is that if you have your own team, then other departments will feel that they have nothing to do with this. So what I need to play is just the role of the coordinator. Department leaders need to design their own operating models, but we need some unified central thinking when designing all the businesses that will have an overall impact on Schneider Electric, and in order to achieve greater scale and purposefully build the commonality of the entire enterprise. ."
Since 2013, Kurel has worked with his colleagues to design new operational models by defining and documenting clerk patterns, corporate culture, organizational structure, roles, decision making, and delivery. Many of Schneider Electric's business and operational model changes involve existing business, national and corporate functions. However, to advance digital services with physical products, the company created two new divisions: Digital Customer Experience and Digital Services.
In short, management must achieve three points in order to design a successful digital enterprise:
Establish a forward-looking business strategy that will guide the adoption of digital technology to meet customer needs.
Evaluate the company's existing operating model gaps and identify the necessary changes in roles, processes, management, and work styles. Establish an ecosystem to ensure the implementation of the strategy.
Assign a team to design changes and monitor implementation.
To ensure a successful new operating model, management also needs to continuously collect feedback from the entire enterprise. Feedback helps the design team make adjustments, continuous improvement and improvement. Companies also need to continue to improve product and service design with a test-learning approach. In this way, they will find their strengths and ways to build a great organization in the digital economy.
Copyright Notice:
This article reprints the news from the interface. If the original author does not want to use the relevant materials on this website, please inform the site in time, we will deal with it in the shortest time, contact 010-57277590.
Mixed Wool Scarf,Wool Blend Scarf,Cashmere Blend Scarf,Thick Wool Scarf
Inner Mongolia Jinshitaihua Cashmere Accessories Co.,Ltd , https://www.thcashmer.com