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==Definition==
There are different ways of defining the elements that make up an operating model.
:''People'', ''process'' and ''technology'' is one commonly used definition,<ref>http://www.boozallen.com/media/file/People-Process-Technology-Enterprise2.pdf {{Dead link|date=February 2022}}</ref> ''process'', ''organization'' and ''technology'' is another.<ref>Marne de Vries, Alta van der Merwe, Paula Kotze and Aurona Gerber. (2011) A Method for Identifying Process Reuse Opportunities to Enhance the Operating Model, and 2011 IEEE International Conference on Industrial Engineering and Engineering Management</ref>
An organization is a complex system for delivering value. An operating model breaks this system into components, showing how it works. It can help different participants understand the whole. It can help leaders identify problems that are causing under performance. It can help those making changes check that they have thought through all elements and that the whole will still work. It can help those transforming an operation coordinate all the different changes that need to happen.
An operating model is like the blueprint for a building. It is more dynamic than a building blueprint, with changes occurring regularly. Also, an operating model is not usually just one blueprint. There are likely to be blueprints for each element: processes, organization, decision making, software applications, locations and so on.
An operating model can describe the way an organization does business today – the ''as is''. It can also communicate the vision of how an operation will work in the future – the ''to be''. In this context it is often referred to as the [[target operating model]], which is a view of the operating at a future point in time. Most typically, an operating model is a living set of documents that are continually changing, like an organization chart.
An operating model describes how an organization delivers value, as such it is a subset of the larger concept 'business model'. A ''[[business model]]'' describes how an organization creates, delivers and captures value and sustains itself in the process. An operating model focuses on the delivery element of the business model. There are plenty of disagreements about the use of the words ''business model'' and ''operating model''.<ref>Amit, Raphael and Zott, Christopher "Creating value through business model innovation", MITSloan Management Review, Spring 2012</ref><ref>Zott Christopher, Amit Raphael and Massa Lorenzo, "The Business Model: Recent developments and future research", Journal of Management May 2011</ref><ref>http://www.ashridgeonoperatingmodels.com</ref>
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