An operating model is a conceptual representation of how an organization functions. It includes the organizational structure, processes, and resources required to deliver a desired outcome. An operating model can be used to describe both the current state and the desired future state of an organization.
The term "operating model" is often used interchangeably with "business model." However, there is a subtle difference between the two concepts. A business model describes the logic of how a company creates, delivers, and captures value. An operating model, on the other hand, describes the actual implementation of the business model. In other words, the operating model is the "how" to the business model's "what."
Operating models are important because they provide a blueprint for how an organization should function. They help to ensure that all of the different pieces of the organization fit together in a coherent way and that everyone is working towards the same goals.
There are many different ways to design an operating model. The most important thing is to make sure that the model is aligned with the company's strategy and that it meets the needs of the customers.
Some common elements of an operating model include:
- Organizational structure
- IT systems
What is an operating model example?
An operating model is a high-level description of how an organization functions. It includes a description of the organizational structure, the processes and activities that take place within the organization, and the resources that are used to support those processes.
Operating models are often used to help organizations understand how they can improve their efficiency and effectiveness. For example, a company may use an operating model to understand how it can better use its resources to support its customer service activities.
Operating models can also be used to compare different organizations. For example, a company may use an operating model to compare its own operations to those of a competitor. This can help the company to identify areas where it can make improvements.
What is the difference between business model and operating model?
The main difference between a business model and an operating model is that a business model defines how a company creates value for itself, while an operating model defines how a company delivers that value to its customers.
A business model includes a company's value proposition, which is the combination of products or services that a company offers to its customers. A company's operating model, on the other hand, outlines the processes and resources that are necessary to deliver the value proposition to customers.
Operating models are often designed to support specific business models. For example, a company that sells physical goods may have an operating model that includes manufacturing, warehousing, and shipping processes. A company that sells digital goods, on the other hand, may have an operating model that includes website development and customer support processes. What is an operating model Mckinsey? An operating model is a high-level description of how an organization functions. It includes a description of the organization's structure, its processes, and its relationships with other entities. The operating model also defines the organization's goals and objectives, and how it intends to achieve them.
Why define an operating model?
An operating model is a set of processes and procedures that an organization uses to produce results. It includes the way the organization is structured, how work is divided among employees, how decisions are made, and how resources are allocated.
Operating models are important because they provide a framework for how an organization functions. They help to ensure that work is done efficiently and effectively, and they can help to improve communication and coordination among employees.
Operating models can also be helpful in times of change or transition, as they can provide a roadmap for how the organization should adapt to new circumstances.