Bridging Silos and Wayfinding New Arts of the Possible: A Guide to Transformation for Operations

Breaking down silos and barriers to transformation

In large and enterprise organizations, before one even thinks about implementing new, cutting-edge technologies, there must be two critical alignments within that organization to build strong foundations and break down the internal barriers to transformation.

Agreement on the business challenge

This may sound simple, but different departments within organizations such as operations, finance, sales, and procurement—often operate in silos. This siloed approach can lead to conflicting priorities and a lack of understanding of the true business challenges and the potential value each line of business (LOB) can realize. For example, the operations team might prioritize efficiency improvements, while the sales team focuses on customer acquisition, and finance is concerned with cost control. Without a unified understanding, these differing priorities can create friction and hinder overall progress.

To overcome this, it is essential for all departments to know and understand the goals and successful outcomes of each other. This alignment ensures that there is a level playing field and no information asymmetry exists. When everyone is on the same page, it fosters collaboration and a shared sense of purpose. For instance, if the goal is to enhance customer satisfaction, all departments need to understand how their specific roles contribute to this objective. Operations might streamline processes to ensure timely delivery, sales could focus on personalized customer interactions, finance might allocate budget for customer service improvements, and procurement could ensure high-quality materials are sourced.

Before adopting new technologies such as AI, blockchain, or quantum computing, it's crucial to have a clear and shared understanding of the problem you're trying to solve across all these teams. This collective agreement not only helps in selecting the right technology but also ensures that its implementation is aligned with the overall business strategy, maximizing the potential for success and value creation.

Alignment between IT and the business

IT and business teams often speak different languages and do not work closely enough, which can significantly hinder the successful adoption of new technologies. This disconnect arises because IT professionals typically focus on the technical aspects, such as system performance, security, and scalability, while business teams are more concerned with market trends, customer needs, and financial outcomes. To bridge this gap, it is crucial for IT to understand the business implications of technology. This means recognizing how technological solutions can drive business value, improve customer experiences, and support strategic goals.

Conversely, business teams need to understand the capabilities and limitations of technology. They should be aware of what is achievable, feasible, and viable within the current technological landscape. For example, while AI can offer powerful insights through data analytics, it requires quality data and proper integration with existing systems to be effective. Similarly, blockchain can enhance transparency and security in transactions, but it may involve significant changes to existing processes and require stakeholder buy-in.

Effective alignment involves continuous communication and collaboration between IT and business teams. Regular meetings, joint planning sessions, and cross-functional teams can help ensure that both sides are aligned on objectives and understand each other's perspectives. For instance, when planning to implement a new CRM system, IT can provide insights into the technical requirements and potential challenges, while the business team can outline the desired customer engagement outcomes and sales targets. This collaborative approach ensures that technology initiatives are not only technically sound but also strategically aligned with business goals, leading to more successful and impactful transformations.

Overcoming internal and external disruptions

Once there is clear alignment between departments, and between IT and the business, on the organizational goals to be solved with technology, the next key thing is to analyze potential disruptive factors.

Internal disruptive factors:

• Legacy systems: Outdated systems can hinder innovation and operational efficiency.
• Lack of data visibility: Limited access to real-time data could make it difficult to make informed decisions.
• Shareholder and board demands/pressure: The board’s focus on increasing revenues, decreasing costs, decreasing risks, and improving shareholder value, could at times come at odds with the cost-benefit ratio of new technology adoption, particularly in a short time period.

External disruptive factors:

• Global supply chain volatility: Disruptions such as pandemics and geopolitical tensions can negatively impact supply chains; we don’t see these risks disappearing in 2025.
• Changing customer expectations: Customers today demand faster delivery times and greater transparency.
• Competition: All companies are constantly looking for ways to improve efficiency and reduce costs.

Greenfield vs Brownfield

The next big decision when implementing new technologies, is to choose between two core approaches - either Greenfield or Brownfield. Some of the factors mentioned in the previous section play a key role in picking the right option.

The choice between Greenfield and Brownfield approaches essentially hinges on an organization's infrastructure, budget, timeline, desired flexibility, risk tolerance, and strategic goals. Greenfield offers a clean slate for modern, scalable systems but demands greater resources and time, while Brownfield leverages existing infrastructure for cost-effectiveness and speed but may limit innovation and flexibility. The optimal approach depends on balancing these factors to align with specific organizational needs and objectives.

Stop thinking about the box – Inspiring examples from successful organizations

When it comes to the adoption of new, disruptive technologies, we need to move beyond traditional thinking and embrace the "art of the possible." This means challenging assumptions, rethinking processes, and being open to new ideas – essentially challenge the status quo. Transformation in its truest sense requires a fresh start, to chart a new course for change. This means we must throw away the box and let the sky be the limit with free-flowing creativity to help break old habits and overcome any headwinds that restrict true DX. This is where Design Thinking can really help to bring all options to the table.

Here are some examples of inspiring technology applications that break the traditional mold:

• Low carbon energy traceability: Low carbon energy sources contribute towards sustainability. Organizations adopting low carbon energy need strong transparency to elicit trust from customers. Blockchain technology, by virtue of its immutable data storage and public verifiability of the distributed ledger, is ideal to ensure traceability and certification of low carbon energy, leading to strong transparency.
• Supply chain efficiency: Botanical Water Technologies and Tex Tracer are inspirational examples of organizations using technologies such as Blockchain and AI to create new ways to manage supply chains more sustainably with increased transparency and efficiency.
• Reducing insurance fraud: Blockchain can be used to create smart contracts, which can automate insurance claims and reduce fraud.
• Space debris cleaning: The UK Space Agency offers another inspiring example of innovative out-of-box thinking. Quantum-inspired computing using the Digital Annealer helps optimize the most efficient route for the satellites to minimize fuel consumption and time required to complete the multi-site debris cleaning operation.
• Sustainable Forestry – Skogforsk's use of remote-controlled autonomous forest machines improves operational efficiency and provides a safer working environment for machine operators.
• Optimising shop operations and energy use – Toridoll Holdings relies on more precise, AI-based Demand forecasting to accurately predict number of customers by shop and time of day. This not only improves operational efficiency, but also minimizes food waste and reduces energy use.
• Medicines to market faster: Automation has been instrumental in supporting Pfizer CentreOne in bringing medicines to market faster, enhancing their speed of innovation.

Proactive Innovation

In today's rapidly changing environment, transformation is impossible without a proactive approach. Embracing a culture of continuous innovation is essential, which involves investing in innovation teams that bridge the gap between business and IT. Encouraging a 'fail fast' mentality fosters experimentation and learning. To keep pace, focus on quick wins through incremental changes rather than total transformation. Innovation teams are crucial in developing specialized solutions to business challenges. It's vital to clearly understand the challenge each business unit faces and the specific value it seeks, while considering the implications for other units—recognizing that gains for some may mean losses for others. By proactively embracing innovation, businesses can stay ahead and achieve successful digital transformation. Ultimately, proactive innovation is key to not just surviving but thriving in a competitive landscape.

Charting your course for change today

Sustainability transformation is about focusing on those societal and business challenges that matter the most, than adopting new technologies that are laser-focused on helping the organisation but also the impact it has on this planet. It's about charting a new course for change that starts with the way we think and work. By bridging silos, embracing the art of the possible, and fostering a culture of innovation, we can unlock the full potential of emerging technologies and create a more efficient, resilient, and sustainable future. The journey of digital transformation begins with a single step: a commitment to change and a vision for a better tomorrow.

Need help exploring your business challenge statement to define your digital transformation? Get in touch today, and we'll help you wayfind your new art of the possible that will deliver real business value. At Fujitsu, we leverage our Human Centric Experience Design (HXD) approach to ensure that your digital transformation journey is not only technologically advanced but also deeply aligned with the needs and aspirations of your people. By focusing on human-centric solutions, we bridge the gap between technology and business, creating innovative, sustainable, and impactful outcomes. Let us partner with you to unlock the full potential of emerging technologies and chart a course towards a more efficient, resilient, and future-ready organization. Together, we can transform challenges into opportunities and drive meaningful change.