COMPANY OVERVIEW
Digital Operating Partners (DOPs) is a specialized consulting firm that unlocks organic value with smart technology such as artificial intelligence, the digital twin and the internet of things, to increase revenue growth, multiple arbitrage and operating efficiency within PE’s short holding period.
DOPs works with private equity firms to improve their portfolio companies by digitally transforming their products, operations and business models with smart tech. This new value creation mechanism identifies opportunities invisible to others.
VIDEO: THE DIGITAL OPERATING PARTNER
The PE digital operating partner is a senior business executive or team with deep hands-on experience in strategy, STEM and operations. Like other operating partners, their role is to create enterprise value, but they do so in a different way.
Watch our explainer video (1:45) to see how we help traditional companies.
SMART DIGITAL VALUE DRIVERS
Our data-driven techniques can be categorized into the following value drivers:
1. Customer Retention (example)
2. Market Share Expansion (example)
3. Customer Expansion (example)
4. Product Expansion (example)
5. Market Expansion (example)
6. Pricing Optimization (example)
7. Margin Improvement (example)
8. Buy & Build Boosting (example)
9. Debt Paydown (example)
10. Multiple Expansion (example)
AND DON’T DO
While we have experience in managing “lift & shifts”, IT is not our focus. The tools of our trade are smart tech: data science (AI & analytics), the digital twin, the internet of things (IoT), blockchain, additive manufacturing, extended reality and the metaverse.
HOW WE DO IT
Our unique expertise yields capital-efficient impact on portfolio company performance and profitability. We do this by following our proprietary four-step process with the following deliverables:
1. IDENTIFY
2. PLAN
3. EXECUTE
4. SELL
PE MYTH BUSTERS
MYTH 1: Technology = IT
Nothing could be further from the truth, at least from a value creation perspective. IT is important but more value can be derived from the same investment in smart technologies such as AI and the internet of things to make companies smart.
MYTH 2: A company’s IT must be finished before it can deploy smart tech
Smart tech does not depend on having low tech (IT, business systems) and mid tech (RPA, automation, digital marketing, ecommerce) completed first because they operate in different swim lanes. The technology and human resource overlap is minimal. Instead, choose your value creation initiatives by their return on capital employed (ROCE).
MYTH 3: Big consulting firms can effectively implement smart tech
Big consulting firms can be effective implementing low tech (IT, business systems) and mid tech (RPA, automation, digital marketing, ecommerce) because the approach and technology to implement them has been commoditized. Since smart tech is new, each project is bespoke, and as such, it’s at odds with big consulting’s business model of leveraging junior staff. This mismatch manifests into longer timelines, less qualified talent and higher costs from big consulting.
LEARN MORE
To learn more about how we use smart tech to create enterprise value, contact us below or read Bruce’s book, The Private Equity Digital Operating Partner: Using Digital Transformation for Value Creation (on this site or in physical form), or browse our insights section to listen to our podcast and read our articles.
FOR MORE DETAILS ON OUR SERVICES OR TO SCHEDULE A FREE 30-MINUTE CONSULTATION …
