An Operating Model can be used as a framework for formulating Operations Strategy explicit choices about the best deployment of organization’s elements to achieve the business goals. It is usually informed by the Business Model. In some cases, an Operating Model can become the source of competitive advantage and can inform the Business Model. An Operating Model is a strategic choice as to the extent of process standardization and data integration desired to achieve business results.
Cisco said Thursday that it will streamline its sales, services and engineering organizations to focus on what it said are "the five areas driving the growth of networks and the Internet"routing, switching and services; collaboration; data-center virtualization and cloud computing; video; and architectures for business transformation. The operating model of an organization is more important as the organization grows larger and diversifies into multiple businesses. An example may be a healthcare organization that consists of multiple hospitals and clinics. The two primary concepts to think about when evaluating the operating model of this business are standardization and integration.
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