CIMA E2 Syllabus A. Business models and value creation - Digital Operating Models - Notes ^{4 / 8}

the essential relationships between a company's internal processes, structures and business functions, as well as the interactions that occur between each. They constitute the key link between a company's strategic objectives and the successful realisation of that strategy.

The ‘World Economic Forum’ on ‘Digital Transformation Of Industries’ identified five digital successful digital operating models. They are:

1. Customer-centric - This model works with a decentralised structure and the main focus is on keeping the customer happy.

2. Extra-frugal - This model works with a standardised structure and is focused providing high quality service at low costs.

3. Data-powered - This model focuses on analytics, software intelligence.

4. Skynet - This model focuses on automation with the use of machines and artificial intelligence. It increases productivity and flexibility.

   An example of this could be a company that builds computers according to exact customer requirements using machines and artificial intelligence. It would take orders on the website, deal with queries via chatbots, automatically route the orders to the manufacturing department, have robotic machines build the computers and automatically package and deliver the computers on a conveyor belt to the warehouse.

5. Open and liquid - This model is outward looking and focussed on enhancing its offering to its customers by collaborations with other organisations.

   An example is a software company who provides a free online version but also provides additional premium software tools and training, charging a fee to customers.
   Another example could be a company working with other companies to increase the number ofservices offered to customers from their app.