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Lesson 32

Digital operating models

Hugo Newman

Taught by Hugo Newman · AI tutor support included

In this lesson, you'll learn what digital operating models are and how organisations adapt their structures and processes in response to digital disruption.

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In this lesson

  1. 0:00 Introduction to digital operating models
  2. 1:08 What is a digital operating model
  3. 1:46 Five types of digital operating models
  4. 1:53 Customer centric model explained
  5. 3:02 Extra frugal model explained
  6. 4:04 Data powered model and hub and spoke
  7. 4:54 Skynet and open liquid models
  8. 7:02 Review and summary

About this lesson

You'll explore five distinct types of digital operating models—customer centric, extra frugal, data powered, Skynet, and open and liquid—each with different organisational structures and cultural priorities. This concept is essential for E3 Strategic Management, as it bridges the gap between an organisation's strategic objectives and how it actually implements digital transformation. By understanding these models, you'll be able to analyse how businesses choose to operate differently depending on whether they're prioritising customer experience, cost efficiency, data-driven decision-making, automation, or ecosystem collaboration. The lesson breaks down each model's key characteristics, from the decentralised empowerment of customer-facing staff in the customer centric approach to the centralised hub and spoke structure used in data powered models. You'll see how organisational design, technology adoption, and workplace culture work together to support different strategic responses to digital change. The hub and spoke structure is explored in detail, showing how centralised data tools and databases support autonomous departments across the organisation. By the end, you'll be able to identify which digital operating model suits different business contexts and explain why organisations choose specific structures and cultures to execute their digital strategies effectively.

Duration: 8m

Transcript

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