Remaking operations

Technology drivers
Remaking operations
Responding to customers, orchestrated by technology

 
Tom Casey,
Chairman and Chief Executive Officer, Tronox Limited
With companies trying to get closer and closer to customers everything, from R&D to sales channels, is ripe for transformation. New technologies are proving to be a catalyst for change.
Making changes today for new cost structures tomorrow

A majority of US CEOs intend to or are already rolling out a slew of change initiatives in 2014. The goal is to build capabilities that can respond quickly to opportunities while keeping a handle on costs and risks. These reinventions share one key characteristic: customers are driving changes to all aspects of operations.

CEOs know that operating models and associated cost structures too must evolve to deliver what the customer values most. Rather than continuing with cost cutting in isolated areas, many CEOs are now paying more attention to the complex interplay between factors such as customer demand, talent, innovations, technology, energy and transportation costs, and tax regimes.

 
Tom Linebarger,
Chairman and Chief Executive Officer, Cummins Inc.
US CEOs are reinventing operations to remain fit today and relevant tomorrow
Connect with our leaders
Mark Strom
Global Operations and U.S. Product & Services Industry Leader
Tel: +1 (949) 437 5438
Brad Householder
Operations Principal
Tel: +1 (508) 259 0432

 
Robert F. Heinemann,
Former Chief Executive Officer of Berry Petroleum Company
The key is making the technologies work together

At a time when social networks and mobile technologies are reshaping business models, companies are also reinventing their IT platforms to drive their new operating models.

Gone are the days of IT being a back-office service-provider; it is now becoming an orchestrator of business services. It is also what connects today’s multi-layered organization, for example, by facilitating employee mobility; integrating third-party systems; and interpreting data from multiple sources to provide real insight.

CEO perspectives


Tom Casey,
Chairman and CEO, Tronox.
Watch the video

“We see the global market becoming more competitive over the next five years. Entrants from other parts of the world will become significant and therefore we have to have a cost structure that meets their forecast cost structure.”


Muhtar Kent,
Chairman and CEO, The Coca-Cola Company
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“One distinct advantage is that we are already a very local business in 200-plus countries—to be exact, 207 nations. We source locally, market and produce locally, and hire and distribute locally, and that gives us a tremendous insight into the markets we serve.”


Roger Wood,
CEO, Dana Holding Corporation
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“Being flexible and agile, ready for a market uptick and downtick, and, at the same time targeting our investments for long-term profitable growth is the tremendous challenge that we face every single day.”


Tom Linebarger,
Chairman and CEO, Cummins
Watch the video

“By forming partnerships, they can rely on Cummins and we can rely on them to push technologies with each other that will serve customers better—and both of us grow as a result. That was fundamental to our strategy in many emerging markets."

“We see the global market becoming more competitive over the next five years. Entrants from other parts of the world will become significant and therefore we have to have a cost structure that meets their forecast cost structure.”
Tom Casey, chairman and CEO, Tronox.

“One distinct advantage is that we are already a very local business in 200-plus countries—to be exact, 207 nations. We source locally, market and produce locally, and hire and distribute locally, and that gives us a tremendous insight into the markets we serve.”
Muhtar Kent, chairman and CEO, The Coca-Cola Company.

“Being flexible and agile, ready for a market uptick and downtick, and, at the same time targeting our investments for long-term profitable growth is the tremendous challenge that we face every single day.”
Roger Wood, CEO, Dana Holding Corporation

“By forming partnerships, they can rely on Cummins and we can rely on them to push technologies with each other that will serve customers better—and both of us grow as a result. That was fundamental to our strategy in many emerging markets.”
Tom Linebarger, chairman and CEO, Cummins

Business implications
  • Align operations around distinct customer segments, keeping a pulse on their changing expectations. All aspects of operations should be geared toward creating customer value and differentiating oneself in a tough market.

  • Challenge the arithmetic behind old decisions and re-evaluate your operating footprint. Manufacturing, logistics, and service delivery costs are changing dramatically. For example, wages in emerging markets are rising while new technologies, such as robotics and 3-D printing, are presenting new production possibilities. Conduct forward-looking assessments and explore alternatives with an eye on customer needs and future revenue opportunities.

  • In order to respond better to sudden and frequent shifts, build operational flexibility while emphasizing collaboration and innovation over entrenched power structures and established processes.

  • Accelerate change by putting technology at the heart of these new operations. Technology investments are on the rise, and IT must take on a more strategic role, as an advisor and orchestrator of services, to meet business needs.
Connect with our leaders
Mark Strom
Global Operations and U.S. Product & Services Industry Leader
Tel: +1 (949) 437 5438
Brad Householder
Operations Principal
Tel: +1 (508) 259 0432