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Explained: Operational backbone

Companies with effective operational backbones are more innovative (measured as the percentage of revenue from new offerings) compared to other companies. But what is an operational backbone?

An operational backbone is “a coherent set of enterprise systems, data, and processes”. Its main function is to support the company’s core operations. Instead of siloed business units with own ERP systems and own data the focus is on shared technology, applications and data. With a functional operational backbone secure, stable and reliable operations are ensured. In short, the operational backbone enables operational excellence. This becomes especially important when managing ambidexterity. A company needs a stable backbone to ensure smooth operations while simultaneously exploring new markets and opportunities.

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