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 | |
Definition | How a business captures value. | How a business is run. |
