According to a recent KPMG CEO Outlook survey, over two-thirds of the CEOs polled worldwide intend to invest in disruption detection and innovation processes in response to the onslaught of emerging technologies like AI, Cloud Computing, IOT, and Big Data because they realize their old business models and processes are reaching end of life
This places the CEO in the unenviable position of having to run and improve their existing 1.0 business model, while simultaneously transforming that very same organization into their 2.0 business model.
Business sponsors do not know what new technologies (platform-as-a-service, AI to name two) are capable of until they see the impact the new technologies can have on services and process design. Equally, technologist don’t understand all the intricacies of the business need, and therefore, typically take a passive, “order taking” posture resulting in projects that automate existing processes rather than reengineering and transforming them.
Traditional steady-state strategic planning activities typically rely upon the construct of mission, vision, and values to set priorities which drive long-term and short-term goals however the world we live in today is anything but steady-state. Elected officials continue to drive public policy discussion to the extremes. Climate change, wars, pandemics, and other global events are impacting supply chains and global economic stability, and AI applications like ChatGPT are accelerating the very disruption CEO’s are worried about.
In this dynamic environment, the mission, vision, values framework is ill-equipped to address the changes ahead of us. Today, executives need an additional strategic planning layer within the planning pyramid… the Operating Model Design – specifically, the digital operating model.
Accelare works with the CIO to develop these new capabilities and to facilitate the needed changes to the both he Strategy process and the SDLC. The chicken and egg problem of what comes first technology or strategy must be clearly addressed the Prescriptive Design Engineering process does this.
Applying new technologies to transform your business model requires fundamental changes to the system development life-cycle (SDLC) your IT organization and business use. Whether you are using traditional waterfall style life-cycles or agile/scrum approaches to business requirements they are both insufficient in an era of digital transformation.
The stakes are higher now – IT and your software suppliers cannot sit back and ask the business owners what they want – they will describe what they do today. Applying new technologies to your old business processes will lead to automating departments and legacy processes which will not get to the root cause of performance issues and innovation opportunities.
Prescriptive design is a new pattern for SDLC where the IT organization and your platform vendors “go-first”. They prescriptively show the business the capabilities of the platform and use those new digital capabilities to design the business process. These new designs can then be implemented by using structured/agile approaches for rapid implementation.
“Accelares’ Prescriptive Design Engineering method has transformed how the business, IT and our technology vendors work together. This is one of the most important changes we have made not for IT but across the enterprise and with our key platform vendors.” ~ CIO of Major Insurance Company
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