Case Study September 2, 2012

Creating a New Operating Model

Business Driver

A $500 million global manufacturing company, was experiencing cost competitiveness problems and on-time delivery issues. Our Client set ambitious targets for cost reduction, improved customer satisfaction, and increased revenue. After an internal review, our Client’s leadership determined that the company’s operations and IT systems would be an impediment to success. Trexin was engaged to perform an assessment of these aspects of the company.

Approach

Following an initial discovery session with our Client’s leadership, Trexin determined that its Assessment-Vision-Roadmap Methodology was best suited to this engagement. The Trexin team then worked with the client’s key stakeholders to work through an assortment of analysis, research, workshop, and visioning activities. Initially, the client was focused on the operational constraints and difficulties of the IT systems in place at the time. Early on in the engagement, however, it became apparent that the operating model of the company, across product lines and types of business, was neither capable nor flexible enough to meet the desired future state.

The project team expanded scope, within the structure and schedule of the original engagement, to collaboratively develop a Target Operating Model (TOM) that defined distinct “operating modes”. The operating modes segment the business and align end-to-end business and IT capabilities: market and customer segments; product and service offerings; business processes; and IT systems and capabilities. The modes range from a high-volume, standardized model that drives lower cost and quick delivery, to a low-volume, high-touch customization model.

Along with the TOM, the project delivered outputs for IT Strategy and Business Process Redesign that supported the operating modes. The Roadmap that was created outlined an 18-month plan to implement the changes necessary to reach the future state.

Results

Our Client adopted the Roadmap plan and made the TOM a key part of its overall strategy. Trexin helped the client institute a Project Management Office to manage the Roadmap initiatives. Trexin continues to provide guidance as various projects implement the business and IT transformations of the Roadmap, including business process redesign, organizational changes, and IT systems implementations that bring the operating modes to life and drive to the cost, speed, and customer engagement targets.