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What is an Operating Model?

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An operating model is how a business is run. It describes the basic structures and processes that are used to create a firm's products and services.


  1. The structure of business operations.
  2. A method for delivering core business objectives.
  3. The structures, processes and methods employed to execute a business strategy.
    1. Example

      A software company develops its services on a third party cloud platform. The company focuses on software development with little capital. Sales are transacted through an app exchange on the cloud platform. The company engages customers in social media and by networking at industry events. Its sales and marketing teams are small.
      Overview: Operating Model
      Related Concepts

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Operating Model

An overview of operating model with a few examples.

Business Model vs Operating Model

The difference between a business model and an operating model.

Target Operating Model

A future state of an organization after the achievement of a set of goals.

Organizational Change Examples

An overview of organizational change with examples.

Business Processes

A list of business process terms.

Business Process Examples

A definition of business process with common examples.

Capability vs Process

The difference between a capability and a process.

Lights Out

Definition of a lights out business process.

Orchestration vs Choreography

The difference between process orchestration and choreography.

Event Processing

The definition of event processing also known as complex event processing.

Modeling vs Mapping

The difference between business process modeling and business process mapping.

Business Process Mapping

A definition of business process mapping with several examples.

Process Gaps

A few examples of common process gaps.

Continuous Improvement

A definition of continuous improvement with examples.

Lead Time vs Cycle Time

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