An operating model serves within organizations and across the network of organizations as an integrated framework to translate business needs into specific operations and services. In other words the operating model should enable the execution of the business model in the best possible way.
First operating principle
Implement one Market Management functional area across all lines of business, which is responsible for the creation of a comprehensive customer view and for the streamlining of the overall product portfolio in order to maximize sales.
The second principle
Segment and specialize in each part of the value chain to achieve cost efficiency at the best possible quality. In other words choose a functional approach for your Operating Model.
The third principle
Implement the same functional model in all our organizational entities in order to
- Facilitate best practice exchange (Economies of Skill)
- Organize shared services (Economies of skill, scale and scope)
- Organize common application and infrastructure architectures (Economies of skill, scale and scope).
Aiming at improved customer services
In the following we will go into more detail on each of the two principles and implications for your operating model.
The precondition for achieving higher productivity and quality and to industrialize the business lies in the core principle of segmentation and specialization.
Following the principle of segmentation, activities which require a similar set of skills are bundled. Segmentation is the pre-condition for specialization to the extent that necessary skills can be executed in the best possible way. Bundling of activities which Comparable skill sets are grouped - in our terminology - into sub-functions. These sub-functions are then grouped into functions. Several functions in turn determine the main functional areas of the Company Operating Model. It is important that this aggregation logic precedes any line of business view to meet the customer’s perspective and to reap the full benefits of synergies. Process standardization across different lines of business, together with a simplified and re-usable product structure and reduced number of products in addition supports the second principle.
We can support you with your project
ToBeConsult offers individually tailored solutions and no standard procedure. We have developed a structured approach, models and efficient methods and apply them in cooperation with our customers. We think entrepreneurially and always act from the owner’s point of view.