Five steps to create an effective digital value chain

My recommendations for accelerating results related to digital value chain optimization.

In the midst of transformation, companies are constantly looking for new ways to meet their customers’ expectations, using technology and innovation to reinvent the way they operate. In this context, optimizing the digital value chain is now a major challenge. This is not just a technology initiative, but rather an organizational effort that also encompasses each organization’s mission, strategy, culture, and operating models.

Rethinking the value chain through the prism of its stakeholders

Transformation begins with understanding and aligning to the outcomes required to deliver value to customers or citizens. Just bringing together different departments – business, operations and IT – to discuss and agree on your core mission and the experience you want to deliver can be transformational in itself. Once the mission is clearly defined, each department must determine how it will contribute to the creation of results. What inputs, technologies, capacities and resources are needed at each stage of the value chain? How do transfers between the different departments take place? What are the core processes for the organization and which can be done by partners or through automation? By breaking down silos and opening up new communication channels, a redesigned value chain will emerge. Make no mistake: collaboration, innovation, and alignment between business, operations, and IT are what drive transformational results.

Unlock the data to have a 360° vision

Collaboration within a digital value chain intensifies the need to make complex decisions quickly and transparently. However, more often than not, leaders do not have access to appropriate contextual information. Indeed, traditional value chains tend to “lock” data into functional silos, thus perpetuating decisions that do not take into account the big picture. Digital leaders manage data as a strategic asset, integrated with technologies such as the Internet of Things (IoT), advanced analytics, artificial intelligence, decision science and intelligent automation. A common decision-making framework must connect critical information, business imperatives and value creation across the entire digital value chain to enable interconnected decision-making.

Develop a digital ecosystem
Few organizations own and drive all aspects of their value chain. Instead, they’re building an ecosystem of technology partners that share common values ​​and provide complementary capabilities that can help them achieve their business goals. In some cases, they entrust these partners with entire parts of their own value chain, in order to benefit from greater flexibility and greater access to the right talent at the right time. Creating an effective ecosystem begins with determining which strategic capabilities and processes should be retained, and which will be best handled by partners. Relying on a network of trusted partners to build internal skills and capabilities provides flexibility and the ability to quickly deliver services to clients.

Rethinking the IT supply chain

There are clear strategies for improving or abandoning non-performing assets in the physical supply chain. The IT supply chain should be no exception. Organizations need to continuously work on how they will reduce technical debt by modernizing and consolidating applications, moving to cloud and XaaS models… targeting all IT assets that are limiting the performance of the whole . The pandemic has also shown that the most resilient companies are those whose IT heritage was at the forefront.

Protecting the digital value chain

Optimizing the digital value chain creates a more connected and open ecosystem. At the same time, it necessarily generates complexity due to new cyber risks and threats, the speed and frequency of which are constantly increasing. Just look at recent ransomware attacks. A fundamental shift in security operations is needed to address these realities. The implementation of modern and proactive security operations has become a business imperative to benefit from a real-time view of threats in an increasingly complex environment. In terms of cybersecurity, a key element concerns the protection and management of the data of customers, citizens, employees and suppliers. In order to obtain the maximum value from its data while its volume is growing exponentially and regulations and sanctions are increasing, it is necessary to maintain control over the data for the entire organization by relying on the possibilities of Artificial Intelligence.

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Five steps to create an effective digital value chain


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