New Enterprise Operating Model


The New Enterprise Operating Model (NEOM) is a framework for businesses to adapt and thrive in the digital era by integrating advanced technologies, modern practices, and streamlined processes. This model aims to improve decision-making, enhance customer experiences, and achieve operational efficiency by embracing an agile, data-driven, and customer-centric approach. NEOM emphasizes collaboration, innovation, and continuous improvement to achieve sustainable business growth.

Key Takeaways

  1. New Enterprise Operating Model refers to a framework that enables businesses to adopt digital transformation by leveraging modern technology, agile structures, and innovative strategies.
  2. It is focused on customer-centricity, data-driven decision making, and continuous improvement to help organizations adapt rapidly to changing market conditions and stay ahead of the competition.
  3. The model emphasizes strong collaboration and communication between various departments and teams, seamlessly integrating technology and business goals to enhance overall efficiency, performance, and value-creation.


The term “New Enterprise Operating Model” is important because it represents a paradigm shift in how organizations approach their technology and business strategies.

This model proactively addresses the need for agility, innovation, and competitiveness in today’s ever-evolving digital landscape.

By embracing new technologies, processes, and organizational structures, companies can effectively transform their operations and align them with emerging market demands.

Leveraging cloud-based solutions, collaborative working environments, intelligent automation, and data-driven decision-making, the New Enterprise Operating Model paves the way for increased efficiency, competitive advantage, and a more customer-centric approach, thus ensuring long-term business sustainability and growth.


The New Enterprise Operating Model (NEOM) is primarily aimed at addressing and streamlining various challenges that modern businesses face in a rapidly digitizing world. Its purpose is to provide a comprehensive strategic framework for organizations to embrace digital transformation effectively, enhancing their overall agility and efficiency.

By adopting this model, businesses can better align their operations and technology capabilities with their strategic vision to create and develop new services, offerings, and innovative business models. With increasing reliance on data, analytics, and cutting-edge technologies like artificial intelligence and automation, NEOM aids organizations in optimizing their internal processes, boosting user experiences, and fostering resilience against disruptive market forces.

NEOM is utilized by businesses to reinvent their traditional operating models through a combination of transformative digital initiatives and innovations. These initiatives transcend departmental silos, enabling enterprises to become more customer-centric and competitive in the marketplace.

The model focuses on cultivating a data-driven culture within the organization by implementing agile methodologies, restructuring conventional hierarchies, and prioritizing user experiences. In essence, the NEOM encourages businesses to embrace the ongoing digital ecosystem transformation, fostering a culture of collaboration, adaptability, and continual improvement which is pivotal for sustainable growth in the modern business landscape.

Examples of New Enterprise Operating Model

LEGO Group’s Digital Transformation: LEGO, a well-known toy manufacturing company, underwent a transformation in its operating model to adapt to the digital age. They reimagined their business by embracing digital-first strategies, e-commerce platforms, and engaging users through mobile applications and games. This new enterprise operating model allowed LEGO to expand its customer base, improve its supply chain efficiency, and enhance its online presence.

Microsoft’s Shift to Cloud-based Services: Microsoft successfully adopted a New Enterprise Operating Model when they shifted their focus from traditional software licensing to cloud-based services and platforms like Office 365, Azure, and Dynamics. This move not only presented a scalable and sustainable growth model for the company, but also enabled them to provide their customers with more efficient, secure, and flexible services, resulting in improved customer satisfaction and an expanded user base.

Banco Santander’s Open Digital Platform: Banco Santander, a leading financial institution, undertook a major transformation by implementing a New Enterprise Operating Model through the creation of an open digital platform called “Openbank.” This platform is a fully digital and scalable bank that offers a wide range of financial services to its customers. It leverages data-driven insights, artificial intelligence, and other cutting-edge technologies to provide a seamless and personalized banking experience. Openbank exemplifies how a traditional organization can embrace new operating models to become more agile, innovative, and customer-centric.

Frequently Asked Questions: New Enterprise Operating Model

What is a New Enterprise Operating Model?

A New Enterprise Operating Model (NEOM) is a strategic framework that businesses can use to improve their operating model, enhance their digital capabilities, and stay relevant in the rapidly evolving market landscape. NEOM provides a blueprint for organizations to innovate, adapt, and make necessary changes to their business model in order to achieve long-term growth and success.

Why is a New Enterprise Operating Model important?

A New Enterprise Operating Model is crucial for businesses as it helps them transition towards becoming more agile, customer-centric, and digitally enabled. This shift allows organizations to maintain a competitive edge, respond to changing customer needs, and adapt to the technological advancements shaping the business landscape. Adopting a NEOM can lead to increased operational efficiency, revenue growth, and overall business transformation.

What are the key components of a New Enterprise Operating Model?

Some key components typically found in a New Enterprise Operating Model include:

  • Digital Transformation: Leveraging digital technologies to improve business processes, enhance customer experiences, and streamline operations.
  • Customer Centricity: Shifting focus towards understanding and meeting customer needs through data-driven insights and personalized customer interactions.
  • Agile Mindset: Adopting agile principles to respond quickly to changing market conditions and shifting customer expectations.
  • Cross-functional Collaboration: Promoting collaboration and communication across teams to break down silos and enable innovation.
  • Continuous Improvement: Embracing a culture of learning, experimentation, and improvement to drive consistent enhancement of products, services, and operations.

How does a New Enterprise Operating Model contribute to business success?

A New Enterprise Operating Model contributes to business success by enabling organizations to:

  • Improve operational efficiency through streamlined processes, automation, and data-driven decision-making.
  • Enhance customer experiences by responding to customer needs proactively and delivering personalized services.
  • Increase agility by ensuring quick adaptation to market changes and new technological advancements.
  • Promote a culture of continuous improvement and innovation by fostering collaboration and cross-functional teamwork.
  • Drive revenue growth and long-term business sustainability by positioning the organization for success in the digital era.

What steps can be taken to adopt a New Enterprise Operating Model?

Adopting a New Enterprise Operating Model involves the following steps:

  1. Define the strategic vision and objectives for transforming the organization.
  2. Conduct an assessment of the current operating model to identify gaps, pain points, and areas for improvement.
  3. Develop a detailed plan to implement the New Enterprise Operating Model, addressing the identified gaps and focusing on key components such as digital transformation, customer centricity, and agility.
  4. Allocate necessary resources, develop cross-functional teams, and assign roles and responsibilities for driving the transformation.
  5. Implement the transformation plan, monitor progress, and continuously assess the impact on business performance and customer experience.
  6. Iterate and refine the operating model as needed, embracing a culture of continuous improvement and adaptation.

Related Technology Terms

  • Digital Transformation
  • Agile Methodology
  • Cloud Computing
  • Data Analytics
  • IT Infrastructure

Sources for More Information

  • Gartner: A global research and advisory company providing insights, advice, and tools for the IT sector and other industries.
  • McKinsey & Company: An international management consulting firm offering advisory services on business strategy, operations, technology, and more.
  • Boston Consulting Group (BCG): A global management consulting firm providing industry insights, strategies, and digital transformation advice for businesses.
  • Accenture: A global professional services company offering a range of services, including strategy, consulting, digital, technology, and operations solutions.

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