Transitioning to a Product-Centric Organization? | Deloitte US has been saved
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Organizations are finding themselves in the midst of continuously evolving customer needs, and the release cycle of products, features, and services is shrinking to keep up with these demands. It is in the hands of leaders to agree on the type of company they want to lead: customer-focused, product-leading, geographically organized, function-centric, process-driven, or syndicated. The majority of companies are embracing the product-centric operating model to improve responsiveness and help accomplish business outcomes. But to realize the model’s benefits, companies must be willing to adopt a more agile mindset
As companies scale to serve customers across multiple channels, they can become more complex, resulting in slower response, disconnections between different customer interactions, and loss of a holistic view of the customer. As a result, functional silos emerge that can create operational boundaries with more handoffs between teams, which ultimately reduces flow and quality.
Not only does this result in an increased cost to serve customers, but more importantly, it impedes customer value delivery and reduces operational efficiency.
One way to overcome these issues is to adopt a product-centric operating model. So, what are the key elements in designing a product-centric model? While they vary based on organizational culture and current maturity, we’ve found the following five practices can help successfully drive operational transformation:
The transformation to a product-centric operating model takes time—sometimes years. In addition to the factors mentioned here, other considerations, such as funding models, talent gaps, and organizational change management, must be addressed. However, it’s important to remember not all operating model elements are created equal. Organizations that prioritize building effective practices for customer-centricity, product mindset, flow, persistent teams, and feedback loop are more likely to realize faster transformation.
As the chief cloud strategy officer for Deloitte Consulting LLP, David is responsible for building innovative technologies that help clients operate more efficiently while delivering strategies that enable them to disrupt their markets. David is widely respected as a visionary in cloud computing—he was recently named the number one cloud influencer in a report by Apollo Research. For more than 20 years, he has inspired corporations and start-ups to innovate and use resources more productively. As the author of more than 13 books and 5,000 articles, David’s thought leadership has appeared in InfoWorld, Wall Street Journal, Forbes, NPR, Gigaom, and Lynda.com. Prior to joining Deloitte, David served as senior vice president at Cloud Technology Partners, where he grew the practice into a major force in the cloud computing market. Previously, he led Blue Mountain Labs, helping organizations find value in cloud and other emerging technologies. He is a graduate of George Mason University.
Manoj is a managing director at Deloitte Consulting LLP. He has more than 20 years of experience advising senior Technology executives in the areas of innovation, strategy and software applications. He helps solve complex business problems by architecting and leveraging multi-service technologies. Manoj has deep expertise in the areas of large scale software development, building hyper performing teams, and has setting up global software development factories from the ground up. He has also advised clients on Enterprise Automation strategy, Automation CoE set up and leveraging Automation to dramatically reduce Technology Operate cost. He serves clients in the Financial Services, Media, Technology, Travel and Hospitality industry segments. Manoj leads Deloitte’s Agile and DevOps practice for the US firm and is the executive sponsor for the Agile DevOps excellence hub for Deloitte.