Operating Model - Revision history

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User: An operating model is the operational design that makes it possible to deliver the business strategy. The operating model defines how the company will deliver the capabilities and financial outcomes required by the strategy.

2019-01-04T15:59:25Z

An operating model is the operational design that makes it possible to deliver the business strategy. The operating model defines how the company will deliver the capabilities and financial outcomes required by the strategy.

User: Created page with "'''Content Coming Soon'''"

2018-12-06T18:27:15Z

Created page with "'''Content Coming Soon'''"

New page

'''Content Coming Soon'''

@@ Line 1: / Line 1: @@
-An '''operating model''' is the operational design that makes it possible to deliver the [[Business Strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the strategy.
+An '''Operating Model''' is the operational design that makes it possible to deliver the [[Business Strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes the strategy requires.
 An operating model covers five elements making up the acronym PILOS:<br />
@@ Line 9: / Line 8: @@
 #Sourcing and partners – those outside the organization supporting the work.
-Each element of the operating model needs to be designed to contribute to the success of the organization, and will have an impact on both the [Income-Statement|income statement] and the [Balance-Sheet|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
+Each element of the operating model needs to be designed to contribute to the success of the organization and will have an impact on both the income statement and the balance sheet.<ref>[https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Description of Operating Model]</ref>
-The people element is the essence of the operating model, organization is developed effectively where functions are run by competent personnel.
+The people element is the essence of the operating model; the organization is developed effectively where functions are run by competent personnel.
-[[Business Process]] is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.
+Business Process is continually reviewed for improvement and adding value, i.e., shorter cycle time and efficient process to maintain a high service level to the customers.
@@ Line 20: / Line 19: @@
-'''Types of Operating Models'''<ref>Types of Operating Models [http://www.amazon.com/exec/obidos/ASIN/B004OC07EE/thbosh-20/ Jeanne W. Ross, Peter Weill, David Robertson]</ref><br />
+'''Types of Operating Models'''<ref>[http://www.amazon.com/exec/obidos/ASIN/B004OC07EE/thbosh-20/ Types of Operating Models]</ref><br />
 One can analyze and categorize one's company or business unit’s operating model based on four models:
 *''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business units have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central management exercises limited control over those business units.”
 *''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated customer service, cross-selling, and transparency across supply chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
-*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or data; the success of the company as a whole is dependent on global innovation and the efficiency of all business units implementing a set of standardized business processes. Accordingly, business unit managers have       limited discretion over business process design, even though they operate independently of other business units.”
+*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company's success depends on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or data; the success of the company as a whole is dependent on global innovation and the efficiency of all business units implementing a set of standardized business processes. Accordingly, business unit managers have limited discretion over business process design, even though they operate independently of other business units.”
-*''Unification'' (high standardization, high integration): "When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model.  Companies applying this model find little benefit in business unit autonomy.  They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”
+*''Unification'' (high standardization, high integration): "When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model.  Companies applying this model find little benefit in business unit autonomy. They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”
-===See Also===
+== See Also ==
 *[[IT Operating Model]]
 *[[Business Model]]
@@ Line 34: / Line 33: @@
-===References===
+== References ==
 <references />
-====Further Reading====
+=== Further Reading ===
-*Winning Operating Models,  [http://www.bain.com/Images/BAIN_BRIEF_Winning_operating_models.pdf]
+*[http://www.bain.com/Images/BAIN_BRIEF_Winning_operating_models.pdf Winning Operating Models]
-*New Operating Models for the Next-Generation Enterprise [https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CFwQFjALahUKEwifzqPg9JzJAhVCej4KHeg6DZE&url=https%3A%2F%2Fhbr.org%2Fresources%2Fpdfs%2Ftools%2F17360_HBR_Cognizant_Report_webview.pdf&usg=AFQjCNF0kXKRC7UJzP37ybRw7juitwwEOg]
+*[https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CFwQFjALahUKEwifzqPg9JzJAhVCej4KHeg6DZE&url=https%3A%2F%2Fhbr.org%2Fresources%2Fpdfs%2Ftools%2F17360_HBR_Cognizant_Report_webview.pdf&usg=AFQjCNF0kXKRC7UJzP37ybRw7juitwwEOg New Operating Models for the Next-Generation Enterprise]
-*Webinar - Operating Models [https://www.youtube.com/watch?v=wYUgzQLUdGg]
+*[https://www.youtube.com/watch?v=wYUgzQLUdGg Webinar - Operating Models]

← Older revision		Revision as of 15:02, 19 December 2022
Line 13:		Line 13:
	The people element is the essence of the operating model, organization is developed effectively where functions are run by competent personnel.		The people element is the essence of the operating model, organization is developed effectively where functions are run by competent personnel.

−	[[Business ~~process~~]] is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.	+	[[Business Process]] is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.

@@ Line 1: / Line 1: @@
-An '''operating model''' is the operational design that makes it possible to deliver the [[Business_Strategy|business strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the [[strategy]].
+An '''operating model''' is the operational design that makes it possible to deliver the [[Business Strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the strategy.
@@ Line 9: / Line 9: @@
 #Sourcing and partners – those outside the organization supporting the work.
-Each element of the operating model needs to be designed to contribute to the success of the [[Organization|organization]], and will have an impact on both the [Income-Statement|income statement] and the [Balance-Sheet|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
+Each element of the operating model needs to be designed to contribute to the success of the organization, and will have an impact on both the [Income-Statement|income statement] and the [Balance-Sheet|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
-The people element is the essence of the operating model, [[Organization|organization]] is developed effectively where functions are run by competent personnel.
+The people element is the essence of the operating model, organization is developed effectively where functions are run by competent personnel.
-[[Business Process|Business process]] is continually reviewed for improvement and adding [[value]], i.e. shorter cycle time and efficient process to maintain high [[service]] level to the customers.
+[[Business process]] is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.
@@ Line 22: / Line 22: @@
 '''Types of Operating Models'''<ref>Types of Operating Models [http://www.amazon.com/exec/obidos/ASIN/B004OC07EE/thbosh-20/ Jeanne W. Ross, Peter Weill, David Robertson]</ref><br />
 One can analyze and categorize one's company or business unit’s operating model based on four models:
-*''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business units have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central [[management]] exercises limited control over those business units.”
+*''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business units have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central management exercises limited control over those business units.”
-*''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated customer service, cross-selling, and transparency across [[supply]] chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
+*''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated customer service, cross-selling, and transparency across supply chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
-*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or [[data]]; the success of the company as a whole is dependent on global [[innovation]] and the efficiency of all business units implementing a set of standardized business processes. Accordingly, business unit managers have       limited discretion over business process design, even though they operate independently of other business units.”
+*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or data; the success of the company as a whole is dependent on global innovation and the efficiency of all business units implementing a set of standardized business processes. Accordingly, business unit managers have       limited discretion over business process design, even though they operate independently of other business units.”
 *''Unification'' (high standardization, high integration): "When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model.  Companies applying this model find little benefit in business unit autonomy.  They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”
@@ Line 32: / Line 32: @@
 *[[Business Model]]
 *[[IT Operations (Information Technology Operations)]]

@@ Line 29: / Line 29: @@
 ===See Also===
-[[Business Model]]<br />
+*[[IT Operating Model]]
-[[IT Operations (Information Technology Operations)]]<br />
+*[[Business Model]]
-[[Operating System (OS)]]
+*[[IT Operations (Information Technology Operations)]]

@@ Line 1: / Line 1: @@
-An operating [[model]] is the operational [[design]] that makes it possible to deliver the [[Business_Strategy|business strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the [[strategy]].
+An '''operating model''' is the operational design that makes it possible to deliver the [[Business_Strategy|business strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the [[strategy]].
 An operating model covers five elements making up the acronym PILOS:<br />
-. Processes and activities – the work that needs to be done<br />
+#Processes and activities – the work that needs to be done<br />
-. Information and information systems – needed to support the work<br />
+#Information and information systems – needed to support the work<br />
-. Locations, buildings and other assets – housing and further supporting the work<br />
+#Locations, buildings, and other assets – housing and further supporting the work<br />
-. Organisation and people – the people who do the work and how they are organised<br />
+#Organisation and people – the people who do the work and how they are organized <br />
-. Sourcing and partners – those outside the organisation supporting the work.
+#Sourcing and partners – those outside the organization supporting the work.
-Each element of the operating model needs to be designed to contribute to the success of the [[Organization|organization]], and will have an [[impact]] on both the [Income-Statement|income statement] and the [Balance-Sheet|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
+Each element of the operating model needs to be designed to contribute to the success of the [[Organization|organization]], and will have an impact on both the [Income-Statement|income statement] and the [Balance-Sheet|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
-People element is the essence of the operating model, [[Organization|organization]] is developed effectively where functions are run by competent personnel.
+The people element is the essence of the operating model, [[Organization|organization]] is developed effectively where functions are run by competent personnel.
-[[Business]] [[process]] is continually reviewed for [[improvement]] and adding [[value]], i.e. shorter cycle time and efficient process to maintain high [[service]] level to the customers.
+[[Business Process|Business process]] is continually reviewed for improvement and adding [[value]], i.e. shorter cycle time and efficient process to maintain high [[service]] level to the customers.
@@ Line 22: / Line 22: @@
 '''Types of Operating Models'''<ref>Types of Operating Models [http://www.amazon.com/exec/obidos/ASIN/B004OC07EE/thbosh-20/ Jeanne W. Ross, Peter Weill, David Robertson]</ref><br />
 One can analyze and categorize one's company or business unit’s operating model based on four models:
-*''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business unit have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central [[management]] exercises limited [[control]] over those business units.”
+*''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business units have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central [[management]] exercises limited control over those business units.”
-*''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated [[customer]] service, cross-selling, and transparency across [[supply]] chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
+*''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated customer service, cross-selling, and transparency across [[supply]] chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
-*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or [[data]]; the success of the company as a whole is dependent on global [[innovation]] and the [[efficiency]] of all business units implementing a set of standardized business processes. Accordingly business unit managers have       limited discretion over business process design, even though they operate independently of other business units.”
+*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships.  The business units are not dependent on one another's transactions or [[data]]; the success of the company as a whole is dependent on global [[innovation]] and the efficiency of all business units implementing a set of standardized business processes. Accordingly, business unit managers have       limited discretion over business process design, even though they operate independently of other business units.”
 *''Unification'' (high standardization, high integration): "When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model.  Companies applying this model find little benefit in business unit autonomy.  They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”
 ===See Also===
-[[Business_Model|Business Model]]<br />
+[[Business Model]]<br />
-[[IT_Operations_(Information_Technology_Operations)|IT Operations (Information Technology Operations)]]<br />
+[[IT Operations (Information Technology Operations)]]<br />
-[[Operating_System_(OS)|Operating System (OS)]]
+[[Operating System (OS)]]
@@ Line 39: / Line 39: @@
 ====Further Reading====
-*Winning Operating Models,  [http://www.bain.com/Images/BAIN_BRIEF_Winning_operating_models.pdf Bain&Company]
+*Winning Operating Models,  [http://www.bain.com/Images/BAIN_BRIEF_Winning_operating_models.pdf]
-*New Operating Models for the Next-Generation Enterprise [https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CFwQFjALahUKEwifzqPg9JzJAhVCej4KHeg6DZE&url=https%3A%2F%2Fhbr.org%2Fresources%2Fpdfs%2Ftools%2F17360_HBR_Cognizant_Report_webview.pdf&usg=AFQjCNF0kXKRC7UJzP37ybRw7juitwwEOg HBR.org]
+*New Operating Models for the Next-Generation Enterprise [https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CFwQFjALahUKEwifzqPg9JzJAhVCej4KHeg6DZE&url=https%3A%2F%2Fhbr.org%2Fresources%2Fpdfs%2Ftools%2F17360_HBR_Cognizant_Report_webview.pdf&usg=AFQjCNF0kXKRC7UJzP37ybRw7juitwwEOg]
-*Webinar - Operating Models [https://www.youtube.com/watch?v=wYUgzQLUdGg Joshua Millsapps]
+*Webinar - Operating Models [https://www.youtube.com/watch?v=wYUgzQLUdGg]

← Older revision		Revision as of 15:59, 4 January 2019
Line 1:		Line 1:
−	'''~~Content Coming Soon~~'''	+	An operating model is the operational design that makes it possible to deliver the [[Business_Strategy\|business strategy]]. The operating model defines how the company will deliver the capabilities and financial outcomes required by the strategy.
		+
		+
		+	An operating model covers five elements making up the acronym PILOS:<br />
		+	1. Processes and activities – the work that needs to be done<br />
		+	2. Information and information systems – needed to support the work<br />
		+	3. Locations, buildings and other assets – housing and further supporting the work<br />
		+	4. Organisation and people – the people who do the work and how they are organised<br />
		+	5. Sourcing and partners – those outside the organisation supporting the work.
		+
		+	Each element of the operating model needs to be designed to contribute to the success of the [[Organization\|organization]], and will have an impact on both the [Income-Statement\|income statement] and the [Balance-Sheet\|balance sheet].<ref>Description of Operating Model [https://www.ashridge.org.uk/executive-organisation-development/open-programmes/designing-operating-models/ Ashridge.org.uk]</ref>
		+
		+	People element is the essence of the operating model, [[Organization\|organization]] is developed effectively where functions are run by competent personnel.
		+
		+	Business process is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.
		+
		+
		+	[[File:Operating Model.gif\|400px\|Operating Model]]<br />
		+	Source: [http://scm.phe-wmo.com/phe-wmo-scm/operating-model/ PHE WMO]
		+
		+
		+	'''Types of Operating Models'''<ref>Types of Operating Models [http://www.amazon.com/exec/obidos/ASIN/B004OC07EE/thbosh-20/ Jeanne W. Ross, Peter Weill, David Robertson]</ref><br />
		+	One can analyze and categorize one's company or business unit’s operating model based on four models:
		+	*''Diversification'' (low standardization, low integration): "Diversification applies to companies whose business unit have few common customers, suppliers, or ways of doing business. Business units in diversified companies offer different products and services to different customers, so central management exercises limited control over those business units.”
		+	*''Coordination'' (low standardization, high integration): “Coordination calls for high levels of integration but little standardization of processes. Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners. The benefits of integration can include integrated customer service, cross-selling, and transparency across supply chain processes. While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”
		+	*''Replication'' (high standardization, low integration): “Replication models grant autonomy to business units but run operations in a highly standardized fashion. In a Replication model the company's success is dependent on efficient, repeatable business processes rather than on shared customer relationships. The business units are not dependent on one another's transactions or data; the success of the company as a whole is dependent on global innovation and the efficiency of all business units implementing a set of standardized business processes. Accordingly business unit managers have limited discretion over business process design, even though they operate independently of other business units.”
		+	*''Unification'' (high standardization, high integration): "When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model. Companies applying this model find little benefit in business unit autonomy. They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”
		+
		+
		+	===See Also===
		+	[[Business_Model\|Business Model]]<br />
		+	[[IT_Operations_(Information_Technology_Operations)\|IT Operations (Information Technology Operations)]]<br />
		+	[[Operating_System_(OS)\|Operating System (OS)]]
		+
		+
		+	===References===
		+	<references />
		+
		+
		+	====Further Reading====
		+	*Winning Operating Models, [http://www.bain.com/Images/BAIN_BRIEF_Winning_operating_models.pdf Bain&Company]
		+	*New Operating Models for the Next-Generation Enterprise [https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CFwQFjALahUKEwifzqPg9JzJAhVCej4KHeg6DZE&url=https%3A%2F%2Fhbr.org%2Fresources%2Fpdfs%2Ftools%2F17360_HBR_Cognizant_Report_webview.pdf&usg=AFQjCNF0kXKRC7UJzP37ybRw7juitwwEOg HBR.org]
		+	*Webinar - Operating Models [https://www.youtube.com/watch?v=wYUgzQLUdGg Joshua Millsapps]