Redesigning the operating model is one of the most effective investments executives can make to achieve profitable growth. Deloitte emphasizes the importance of defining an objective operating model in most of its approaches to change. Leaders must have a clear understanding of their strategic ambitions, where to play and how to win, and the business models they want to employ, including the target customer segments, channels, prices and delivery models. This is because both the strategy and the business model directly influence the design of the operating model. An operating model is composed of central processes, organizational structures, management systems, information technologies and culture.
The Operating Model Canvas is derived from Andrew Campbell's work at Ashridge University and was crystallized in the book Operating Model Canvas (Campbell, Gutierrez and Lancelott, 2011). It allows for a detailed presentation of an organization's value proposition (Campbell, 201) (mainly related to the customer, since it focuses on the market as a critical area for stakeholders).The design of the operating model addresses the location of people and resources, the skills and infrastructure that are required and the way in which the organization monitors and improves performance. An operating model is one of the tools that leaders can use to help them formulate and execute their strategy. It informs about the appropriate level of integration and standardization of business processes to deliver on the organization's promises to stakeholders. One of the first definitions appeared in an article published by Accenture in 2000, in which the term was used as an operating business model (Linder and Cantrell, 2000).
It was defined as the organization's central logic for creating value. As part of their business design method, they highlight a specific function and approach to operating model design. An operating model describes how an organization offers value, making it a subset of the broader concept of “business model”. Masterclass on state of preparedness & Workshop & Second annual summit on business transformation and operational excellence. If the business model represents how you run your business, then the operating model represents its DNA.
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