TALKING

And even though their organisations have been climbing the experience curve on digital capabilities , cloud computing , modularity , and automation , they now see a new wave of technology coming their way bringing web3 , the metaverse , and artificial intelligence . Most are currently focused closely on cost , intent on reducing operational spending and ensuring that any new investments are realised successfully .

If technology generates value , then what is it that has to change ?

As companies adapt their operating model to enhance the value from their technology investments , they need to focus on technology that helps the business grow , as opposed to technology that just keeps the lights on .

But before any of those things occur , the most important change is a mindset shift . Executive teams have to stop thinking of their technology function as a cost centre and begin to see it as a place where the company generates value .

This is an important shift because it forces everyone to focus on outcomes . It changes the relationship between the business and technology , elevating technology leaders to become thought partners who collaborate with their business peers . Accountability grows , ideas flow in both directions , delivery speeds up , and quality increases .

Successful operating models

In client work across industries , Bain & Company has identified six key themes that successful companies apply to their operating models to realise greater value from their technology investments .

# 1 Adopt the product model

activities . This changes everything because it sets up persistent cross-functional teams that continuously focus on improving their product and its business outcomes . It places greater emphasis on the user ’ s needs , and it requires close collaboration and sometimes integration with the business .

# 2 Invest for outcomes

The shift to a product model supports an equally important change in funding , Executive teams fund a product area rather than individual projects .

The company assigns persistent budgets to product teams and holds them accountable for delivering outcomes , such as increasing conversion of online baskets to sales , reducing call volume to human resources , or increasing visibility in the supply chain .

# 3 Talent first

Talent remains a critical topic on executives ’ mind . Demand for top technology talent more than doubled between 2015 and 2019 .

The nature of the job is also evolving quickly : 40 % of the most in-demand jobs did not exist in 2015 . And among those in demand , their expectations have changed ; they can pick and choose where and how they work .

Oliver Bittner , Partner , Bain & Company Middle East

Arguably the central theme in any operating model upgrade is to adopt the product model rather than project-based work as the way to organise , manage , and resource technology and data investments and

The pandemic spurred the adoption of a work-fromhome model , and now flexibility in location , timing , and choice of projects remains a top criterion for choosing a job .

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