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Business Model vs Operating Model

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A business model describes the way that a business captures value.
An operating model describes the way a business is run.

The Difference

A business model describes how a business generates value. A train manufacturer designs and produces trains. The trains are far more valuable than the parts and raw materials required to produce them. Therefore, the business captures value.
Operating models describe the way that a business structures its core processes. For example, a train company may source parts from a large number of countries and build a complex global supply chain driven by technology tools. Alternatively, the company may work with a limited number of trusted suppliers and have few supply chain capabilities of its own.
Business Model vs Operating Model
Business Model
Operating Model
How a business captures value.
How a business is run.

Operations Management

This is the complete list of articles we have written about operations management.
Asset Management
Budget Planning
Business Objectives
Business Processes
Capacity Management
Conformance Quality
Continuous Improvement
Fit For Purpose
Goal Setting
IT Services
Operational Analysis
Operational Performance
Operations Examples
Operations Plan
Operations Planning
Performance Improvement
Performance Management
Performance Metrics
Process Metrics
Quality Assurance
Quality Control
Quality Management
Quality Metrics
Quality Objectives
Risk Management
Service Management
Strategic Drivers
Strategic Planning
Vendor Management
More ...
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