The Digital & Strategy publication series by BearingPoint and the IIHD Institute sheds light on current and strategically relevant topics with a clear focus on digitalization.
The third issue, ´Predictive Enterprise Operating Model’, discusses the increasing importance of informed and data-driven decision making on an industrial scale.
More than ever, organizations have to make informed and data-driven decisions to create relevant products and services for changing and increasingly individualized customer needs and expectations. In an increasingly complex and data-driven world, relying on pure experience-based gut feeling and non-data-driven decision-making processes will be detrimental to efficiency and effectiveness and, finally, lead organizations to a dead-end road. Consequently, the importance of predictive enterprise is increasing, and thus, according to BearingPoint and IIHD Institute, organizations must transform their operating models to become predictive enterprises that enable everyone to use data and analytical techniques to make better decisions.
To guide the transformation of becoming a predictive enterprise, the paper presents a four-stage approach for an operating model change, including five central dimensions that have to be developed to find, capture, and extract meaning from data and increase the speed and quality of decision-making.
The following five dimensions play an important role:
The ultimate goal of Predictive Enterprise is to continuously create intellectual property derived from data that adds real value to the customer. By continuously monitoring products, markets, competitors, and changing regulations to identify new developments and opportunities, the predictive enterprise automatically becomes structurally agile as well, reinventing itself virtually on an ongoing basis. However, for the transformation to succeed, it requires building a data democracy; establishing new organizational structures; changing the role and style of management; avoiding blind spots and establishing open communication and confrontation of different world views. And last but not least, realigning incentive structures to facilitate change.
Marcel Tietjen, Partner at BearingPoint