Operating model: Difference between revisions

Revision as of 15:01, 18 May 2010

Revision as of 15:18, 18 May 2010

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The team of Jeanne W. Ross, Peter Weill and David C. Robertson summarized their research in Enterprise Architecture as Strategy.<ref>http://www.architectureasstrategy.com/book/eas/about.htm.] </ref>They found that an organization with an explicitly defined operating model report 31% higher operational efficiency, 33% higher customer satisfaction, and a 34% advantage in new product development.

In an extension to the earlier Corporate Strategy work, they outline four operating models illustrated in the graphic:<br/>

::::::'''Process Standardization'''

{| class="wikitable"

|-

! Process Integration !! Low!! High

|-

| '''High'''|| Coordination|| Unification

|-

| '''Low'''|| Diversification|| Replication

|}

* '''Coordination''' – businesses requiring low business process standardization but high business process integration (Compare with Allied Strategy – where subsidiaries provide varied products to the same customers)

* '''Unification''' - businesses requiring both high business process standardization and high business process integration (Compare with Integrated Strategy)

* '''Diversification''' - businesses requiring low business process standardization and low business process integration (Compare with Holding Company Strategy)

* '''Replication''' - businesses requiring high business process standardization but low business process integration (Compare with Franchisees or Replicated Facilities of an Integrated Strategy)

==Role in Defining the Business and Technical Architecture==