Striking the Right Chord: Operational Excellence vs. Digitization

Striking the Right Chord: Operational Excellence vs. Digitization

In the fast-paced world of telecommunications or technology and network companies (TewerCo), the debate between Operational Excellence and Digitization often takes center stage. The question arises: Which comes first? Drawing from my industry experience, I advocate for the pivotal role Operational Excellence plays in setting the tone for successful Digitization initiatives.

Operational Excellence: Laying the Foundation

Operational Excellence is more than just the optimization of regular operational processes; it is the embodiment of a holistic, organization-wide commitment to continuous improvement. It's about creating a culture that strives for efficiency, effectiveness, and adaptability across all functional units from revenue2profit. In essence, Operational Excellence ensures that every aspect of the organization is aligned and geared towards achieving overarching business goals.

Digitization: The Catalyst for Transformation

Digitization, on the other hand, involves leveraging technology to create digital versions of operational processes, making them more efficient, scalable, and responsive. It is the bridge that connects traditional operational excellence with the demands of the modern digital era.

The Chicken or the Egg Dilemma :

The age-old question of whether Operational Excellence or Digitization should come first is a thought-provoking one. However, my experience underscores the significance of Operational Excellence as the precursor to successful Digitization. Imagine a scenario where an organization, eager to embrace the digital wave, rushes into Digitization without having its operations finely tuned. The result? Disruption, in terms of -

  1. Inefficient operations worsen with digitization, causing delays and hindering efficiency gains.
  2. Poorly prepared data systems struggle to integrate, hampering decision-making.
  3. Operational glitches negatively affect user experience.
  4. Insufficiently optimized operations lead to unforeseen expenses in digital system implementation with lot of CR [Change Request]?
  5. Hasty digitization diverts attention from long-term goals to immediate challenges.?

As the eminent quality guru W. Edwards Deming aptly put it, "A bad system will beat a good person every time." In the context of Telco or TewerCo, this means that even the most cutting-edge digital solutions cannot compensate for deficiencies in the foundational operational structure. If the organization's core processes and procedures are not optimized, the introduction of Digitization can lead to chaos rather than innovation.

while the answer to whether Operational Excellence or Digitization should come first may vary, my industry experience advocates for prioritizing Operational Excellence. After all, in the evolving landscape of Telco or TewerCo, a well-orchestrated harmony between Operational Excellence and Digitization is the key to sustainable success. Do you have any experiences or thoughts to share on this intersection of operational efficiency and digital transformation?

Simone Stouthart

Digital Transformation, Product Innovation, Operational Excellence & Business Change Programs — Partner Eco Systems — Value Chains — L2C & P2P processes — UX/CX — IT Systems — XaaS & Managed Services

10 个月

Absolutely agree!

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