Operating model: Difference between revisions

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A simple definition of an operating model for a business is a schematic which shows the operating units for the business and the relationships between these operating units.

Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. The operating model can be a product that in great detail describes how the organization does business today. This can be the foundation for organizations that want to transform it's business. The business drivers are then translated into new requirements that leads to a new Target Operating Model. The Target Operating Model represents the high level requirements, that drives the future Business and IT development. In many situations developing the Operating Model at a very detailed level requires substantial resources in both the business units and IT.