Operating Model Canvas Download Epub Mobi Pdf Fb2 13
Chrystal Dueno
The UNITE Operating Model Canvas allows you to design your Operating Model purposefully, thinking about how each piece will support your innovation or transformation initiative, ultimately helping you bridge the famous strategy-execution gap.
Among the tools, a business owner has, Operating Models are among the most useful and most referenced. Successful companies fully understand how their company is impacted by the strategic goals reflected in their Operating Model and how these goals are reflected in their key activities and processes.
An Operating Model is both an abstract and a visual representation of how an organization delivers value to its customers or beneficiaries. It focuses on how an organization actually runs itself. The concept of an Operating Model Canvas was originally developed by Andrew Campbell and his colleagues. We have developed an iteration of it that will consider additional aspects more geared towards innovation.
Operating models define how an organization delivers value to its customers and stakeholders through its processes, structures, technologies, and culture. Real-life examples of operating models can be observed across various industries. Here are a few examples:
The Operating Model Canvas thus expands upon the Value Creation aspects of the Business Model. So, when you need to focus on putting your strategic goals into action, just replace the more abstract Value Creation aspects of the Business Model Canvas with the more detailed elements of the Operating Model Canvas.
Value Delivery Chains represent the core processes of your business. The central Value Delivery Chain(s) describes how to deliver the Value Proposition to the target customer. In other words, these core processes directly deliver value to your customers. You may delineate several Value Delivery Chains if you have more than one. A business is not necessarily limited to just one Value Chain!
The other areas are supporting processes. These are necessary but focus on internal customers and processes as opposed to external ones. The supporting processes depicted at the top of the operating model canvas cover the firm infrastructure, organization, partners, and locations, while the supporting areas at the bottom of the canvas focus on HR, management systems, finance, legal, and information.
You want to be sure of what you really need before you start to build it. The processes of a large organization are built for its purposes and needs. Even if the parent company has the necessary know-how, it may be too slow, too complicated, or too expensive for your purposes.
Your product is still highly immature and likely not profitable. Yet. Continue to refine and experiment with the Value Proposition, your channels, your customer relationships, and your audience. Also work on pricing, bundling, packaging, partners, and your sales approach. Keep building and shipping, and make sure to maintain a fast iteration cycle with real market feedback.
Customer service may be a source of differentiation, or it may be best to outsource it. Regardless, think about how you want to run it. For example, customer service via chat is seven times more cost-efficient than running a call center. If customer service is an area where you want to differentiate, think about the most effective ways to do so given your business concept.
Customer service may be a source of differentiation, or it may be best to outsource it. Regardless, think about how you want to run it. For example, customer service via chat is seven times more cost-efficient than running a call center. If customer service is an area where you want to differentiate, think about the most effective ways to do so given your business concept.
What data, information, and IT applications do you need to support each process? How do you integrate these applications and how do you aggregate them into overarching dashboards that everybody can have access to on a daily basis? Which applications need to be integrated? Which really needs to be bespoke rather than standard, and who owns the data and applications?
A business operating model framework serves as a structured approach to defining how an organization creates, delivers, and captures value. It encompasses various components such as processes, structures, capabilities, technologies, and culture.
The Operating Model Canvas is used in a similar way to the Business Model Canvas (or any other canvas). Get together around a flip chart or whiteboard. Write out the areas of the canvas and fill those areas with Post-it notes discussing the critical aspects and how everything fits together. It is typically helpful to start with the core Value Delivery Chain(s). Then move on to what your next biggest challenges are. Do not get dogmatic about the fill order; there is no single best way.
The core strength of the Operating Model Canvas is its brevity. It intentionally does not touch upon every aspect of Value Creation but rather forces you to focus on the key elements and to consider, at the highest level, how the different aspects of the organization fit together. This enables the strategy execution and helps to achieve alignment at a high level. It will also help you consider different alternatives for scaling.
For example, you might consider outsourcing most aspects and conducting only partner management and marketing in-house. This is dramatically different from an approach where you do everything in-house!
Our 35-page comprehensive innovation guide covers the key areas why innovation fails. While it cannot cover all the solutions (that would take books to fill), it provides you with a convenient starting point for your analysis and provides further resources and links to the corresponding UNITE models, ultimately allowing you to work towards a doubling and tripling your chances of success.
If you are occasionally looking for a sparring partner or you need limited support, then this option will be ideal for you. Coaching sessions are 1-2 hours where we can discuss any challenge or opportunity you are currently facing.
The print version will be shipped out to you on sign-up. The digital version will be emailed to you, and comes in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.
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The business model canvas, sometimes referred to as the value nine box model, was proposed by Alex Osterwalder (Osterwalder and Pigneur, 2010) and it is yet another way of systematically working through the essential elements of any business. The nine boxes are not seen as something in isolation, but rather an integrated way of operating with each part capable of adding value. It has become very popular amongst the start-up community and especially those based on technology.
Download a blank version of this business model canvas [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] to capture ideas and experiment with your own version as you work through the course and as each of the nine aspects of the business model are discussed.
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A well-designed TOM enables organizations to navigate these complex dynamics effectively. It fosters agility, facilitates quick decision-making, and ensures resilience against market shocks. Companies with a clear TOM are better positioned to take advantage of opportunities and mitigate risks. For example, during the COVID-19 pandemic, organizations with adaptable operating models were 3.2 times more likely to increase market share compared to their less agile competitors, as per a survey by Boston Consulting Group.
This guide aims to serve as an in-depth review for C-suite executives, transformation leaders, and decision-makers looking to either introduce or revamp a Target Operating Model within their enterprise. The objectives are twofold:
A Target Operating Model (TOM) functions as a strategic blueprint that provides a holistic view of how an organization should operate to deliver maximum value to its stakeholders. It encompasses multiple dimensions, each critical for effective organizational functioning. These core components usually include:
By dissecting these applications, we can glean insights into the versatility and strategic importance of TOMs in modern business landscapes. Whether you operate in the technology sector or oversee a manufacturing conglomerate, a well-articulated Target Operating Model serves as a cornerstone for organizational success.
TOMs go beyond mere operational planning; they align intricate details with strategic objectives. Businesses often suffer from strategic drift, a divergence between what they plan and what they do. A TOM minimizes this drift by establishing a framework that ties departmental efforts and initiatives directly to organizational goals. According to a study by PMI, 41% of projects failed to reach their initial goals due to a lack of alignment with corporate strategy. Therefore, TOM serves as the missing bridge that aligns organizational function with strategic intent.
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