The world of business is becoming increasingly digitized, and organizations must keep up. It is not only CIOs that lead this change. COOs must do their part by ensuring their company’s operations conform to new demands.

COOs must ensure the organization’s strategic architecture meets operations needs. They must enforce resiliency and cost efficiency throughout the organization. Their operational models should support sustainability and long-term value.

What are a COO’s Priorities in Digital Transformation?

Architecture That Supports Operations

Digital processes should never take a cookie-cutter approach. They must scale with business operations. Systems should support an end-to-end tax-efficient supply chain.

COOs must consider how systems will support asset product optimization, national and international logistics, outsourcing and insourcing, and talent management. They must also look at practical components like how systems deliver analytics, data, and security. The right system will offer optimal efficiency and cost savings.

Resiliency Plans to Offset Disruptions

Disruptions are likely in a business setting. COOs and other executives must focus on avoiding disruptions. They must also choose systems that will recover quickly when disruptions occur ensuring they can get back on track with little downtime.

Leaders must devise a plan that supports quick recovery. The process often requires getting the organization ready for unforeseen issues through stress-testing techniques, risk assessment, and agile processes. They must be ready to pivot to other systems when disruptions occur.

Prioritizing Efficiency

Executives must create a digital transformation plan that leads to more efficient processes. An updated system can save time and money and improve productivity and resource allocation. It will provide short-term benefits that support long-term company success.

Supporting Sustainability

Organizations can support sustainability through plans that improve resource allocation in supply chains. An effective system can lead to water and energy conservation and reduced waste. In addition to saving the environment, a sustainable system impresses customers and saves organizations money.

COOs seeking sustainable systems should be on alert for greenwashing, limited ESG disclosures, and seemingly inaccurate ESG metrics. If these issues are detected, leaders can respond by addressing them transparently, updating disclosures, and implementing more sustainable processes.

Using Digital Processes that Increase Revenue

Digital systems can go beyond saving money through increased sustainability. They can help organizations come up with new products that create additional revenue streams.

Advanced technology supports money-generating opportunities. For example, supply chain analytics provide data that enhances decision-making. Digital tools can be used to improve existing products and aid in the R&D process.

Leaders should embrace AI for its ability to forecast issues, reduce errors, and optimize productivity. With the proper approach, it can streamline processes and make service and returns more efficient. It can build resiliency within the workforce.

Implementing Digital Transformation

Once COOs have priorities in mind, they can embark on a digital transformation process that implements the following steps.

Know Your Goals

Leaders must implement digital transformation with goals in mind. They must consider how their new systems support their short and long-term goals. Determine your business objectives and research to find the best systems for your organization.

Prepare for Culture Change

Leaders must get their teams ready for new systems. They must help them overcome skepticism which is common in the face of change. A resilient culture will support technology adoption.

Consider Long Term and Short-Term Goals

The right systems may support efficiency and cost savings, but it could take months or even a year before organizations see those benefits considering adaption and getting up to speed. Leaders should consider small changes that they can implement in the meantime to support short-term results. For example, there may be modular products that are proven to yield results that can be implemented and scaled quickly to support short-term business goals.

Consider the Technology That’s Right for Your Organization

Today’s leaders are updating systems with trending technology such as IoT, robotics, the cloud, digital twin, augmented reality, and AI, to name a few. Consider which will be necessary for your organization. If your organization already uses this technology, consider how to update it for increased efficiency and how to ensure it integrates with new systems.

Refine and Scale as Needed

Once systems are up and running, revisit them to determine how they serve your business. Gather feedback to learn how well they support your organization. Scale them to meet evolving organizational needs.

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