Drive Product-Aligned Operating
Model Transformation with
HCLTech's FENIX 2.0 Framework
Unlock speed, efficiency, accountability and
supercharge customer experience
Introduction
Companies understand that competencies across all levels
successful and accelerated and functions in a phased and
digital transformation is critical to strategic manner.
their future. The goal is clear: However, it is easier said than Focus on value addition
Transform business value chains done. Most large organizations
to maintain the edge with digital today are organized around
technologies, deliver an functions – IT, Operations, etc.
outstanding customer experience Within these reside multiple cost
across B2B and B2C paradigms centers resulting in silos that Align to business outcomes and
as well as on profitability and impact how teams operate and customer experience impact
shareholder value. Yet, ‘53% of collaborate.
organizations surveyed remain
untested in the face of digital Impacting customer experience
challenge and their digital requires organizations to align
transformation readiness’ with their customers’ journeys Focus on engineering discipline
according to a Gartner report. and concerns. This requires
Realizing true digital breaking down the existing silos
transformation requires and reimagining the organization
reimagining cultural, to align IT and business around
organizational, and operational customer value chains which will Align funding with the
ethos and structures through enable them to: organization's priorities
intelligent integration of digital
technologies, processes, and
Defining the product-aligned operating model
A product-aligned operating A digital product is a set of capability that can dig deep into
model provides a framework to capabilities that drives customer inventory, bring up related
align IT and business, that focuses value. Products could be external- products, with user reviews and
on outcomes. Simply put, or internal-facing. personalized recommendations
resources such as people and For instance, in the case of an could be a significant
funds are assigned to products online retailer, a search engine differentiator.
based on their strategic value. could be a product. A good search Such a product would require
What is a ‘product’ in this context? engine providing a smart search pulling data from multiple
applications (SCM, for example),
leveraging AI (for personalized
recommendations), and possibly
interfacing both on-premise and
cloud infrastructure. In short, it
will require the underlying
applications that service the
product to be grouped within the
product. It will also require close
collaboration across business
and IT in a product-aligned
operating model. It will help
respond quickly to market cues,
leverage opportunities, and pivot
as needed to gain market share
and keep customers engaged.
Drive Product-Aligned Operating Model Transformation with HCLTech's FENIX 2.0 Framework 2
Realizing the product-aligned operating
model: A strategic framework
We leverage FENIX 2.0 framework disciplined manner. FENIX 2.0 and accelerators to transition to
to help our customers chart their framework helps categorize and the product-aligned operating
product-aligned transformation prioritize initiatives while model.
journey in a structured and providing delivery models, tools,
Traditional IT spend Digital transformation spend
Target
Technologies
Build to Adaptation and Speed and Innovation
Q3 Q2
Change @ Scale
Resilience Experience
technologies
Target scale
Exploit Exploit
Factory | Major Release 4 3 Managed Delivery Centre | MVP
Non-Differentiated Differentiated
Capabilities Capabilities
Technologies to retire
or experiment
Sustain 5 Experiment 2 1 Define
Factory | Major Release Innovation KLab | Prototyping Co-Innovation Lab | Ideation
Sustenance and
Experimentation
Q4 Run to Sustain Efficiencies Q1 Disrupt to
Succeed
Non-Target
Technologies
Non-differentiated business process Differentiated business process
Exhibit 2: FENIX 2.0 Framework: Prioritise and Align
This four-quadrant model of of experts focused on innovation underlying essential business
FENIX 2.0 built around in a 'fail-fast’ environment. processes with a focus on stability
differentiating vs. and resilience and standardization
non-differentiating capabilities Quadrant 2: of processes.
[horizontal axis] and technology Strategic/differentiating E.g., Payment engine and payment
focus [vertical axis] enables a capabilities with a focus on interface in case of a retailer or
fit-for-purpose operating model time-to-market and customer bank.
and execution. delight. Approach: Teams aligned to
More details on FENIX 2.0 E.g., a delightful shopping cart capabilities, focused on
Framework. experience with user-friendly UI, standardization and automation —
quick and hassle-free checkout, some might be ripe for
Quadrant 1: Innovation and and timely updates on delivery. re-engineering for cost reduction
experimentation either on Approach: Teams aligned to and greater efficiency.
emerging trends in the industry customer journeys, working in
and domain or technology to close collaboration with the Quadrant 4: A legacy platform to
enable a differentiating edge in business. Well-funded to drive be kept running till they retire
the market . continuous improvements with E.g. Asset Inventory systems on
E.g., Experimenting with rapid time-to-market and mainframe.
Metaverse use cases to enhance observability at scale. Approach: Teams aligned to
customer experiences. services, focused on sustenance
Approach: Cross-functional team Quadrant 3: Core capabilities at least cost.
Drive Product-Aligned Operating Model Transformation with HCLTech's FENIX 2.0 Framework 3
The building blocks
for a product-aligned
operating model
Our product-aligned operating management to enable We partner with our customers by
model approach distills learnings efficiency and ensure adopting a product-aligned
from our digital transformation value-based funding operating model to orchestrate a
engagements with our customers. 4. Digital Capability upliftment transformation across these
In addition, it outlines a holistic to build autonomous dimensions.
approach to evolving the cross-functional teams and
organization across multiple enable people to fit and thrive
dimensions toward the target in the new organization
state. Businesses and IT need to structure.
realign, focusing on products that 5. Relook at the underlying
deliver value. technology and data fabric, to
1. The organization design aims enable autonomy, speed to
to align business and IT to market and actionable
deliver value in accordance insights.
with the FENIX 2.0 strategic 6. Change management to steer
framework the shift in organization
2. Switch to product ways of culture and mindset towards
working, in which business a purpose-led product
and IT teams develop a close aligned operating model,
working relationship focused focusing on customer
on joint accountability and centricity and continuous
faster feedback loops improvement
3. Adopt product portfolio
Drive Product-Aligned Operating Model Transformation with HCLTech's FENIX 2.0 Framework 4
Benefits - Why a product-
aligned operating model Success stories
should drive digital With the product-aligned operating
transformation
model, HCLTech helped a Dutch retail
bank develop and manage key
products and platforms with
distributed teams to realize:
• 35% reduction in TCO, enabling
investments in transformation
initiatives
• 4X increase in customer
Customer / user Alignment: Business and satisfaction, with focus on
Centricity: Outcome IT partnership aligned customer experience, innovation
orientation, creating towards customer and experimentation
business value with a journeys, maximizing the • The ability to release on-demand
focus on customer flow of value based on product needs enabling
experience and delight the bank to respond to market
cues faster
For a Swedish car manufacturer,
HCLTech adopted scaled agile and
product-aligned operating models
across its legacy and modern
BI-105AllAll743477-EN00GL
Speed and Efficiency: Accountability: technology portfolio, helping:
Accelerated change End-to-end • 2X increase in delivery cycles,
and innovation, less accountability with resulting in faster time to market
waste with more cross-functional teams and user satisfaction
creativity with focused on optimizing • Reducing waste, bringing down
empowered teams the entire value chain stalled initiatives and programs to
zero
• 60% reduction in operations effort,
channelling the savings towards
Our experience points to a significant reduction in total
strategic and differentiating
cost of ownership (TCO), faster time-to-market, and more
initiatives
outstanding team commitment and engagement resulting
in more innovation.
5
Drive Product-Aligned Operating Model Transformation with HCLTech's FENIX 2.0 Framework
hcltech.com
HCLTech is a global technology company, home to 211,000+ people across
52 countries, delivering industry-leading capabilities centered around Digital,
software. The company generated consolidated revenues of $11.79 billion over
the 12 months ended June 30, 2022. To learn how we can supercharge progress
for you, visit hcltech.com.
