Operating Models

Definition

In their most basic form, Operating Models dictate where and how critical activities are performed across an organization. In transformation contexts, they serve as a blueprint for organizing resources within enterprise entities and enabling the interactions that achieve strategic objectives — spanning business processes across different structures, including all involved business partners.

Operating Models in Business Flows

The Business Flows framework integrates end-to-end business processes and Operating Models as the primary blueprints for organizational transformation.

Methodology

Operating Models are defined by a collection of flows that distinguish exchanges of information, material, service or value between sending and receiving enterprise structures. Each flow connects to end-to-end scenarios and business processes, creating an object-relation model that incorporates all flows, related information, organizational units and business partners within the process repository.

Example

Organizations typically require multiple Operating Models, varying with enterprise structure complexity and geography — greater boundary-crossing increases complexity and demands more intricate processes. Take the distinction between domestic and international service: domestic customers receive pickup repair services, while international customers must initiate orders differently. Filtering for a segment reveals its material flows, information interactions and value exchanges while selectively hiding intercompany transfers — and each selected flow exposes its attributes and linked business processes, so the model can be validated against real operational sequences.

Uses & benefits

Operating Models bridge the communication gap between business and IT, creating synergy between strategy, implementation and execution. They support implementation and change management and build a common understanding of how people, processes and technology fit together. Applications include: