BM vs OM

https://www.linkedin.com/pulse/separating-business-operating-models-ben-gray

The emerging role of IT governance

http://www.ibm.com/developerworks/rational/library/dec07/mueller_phillipson/

What is IT governance?

In order to discuss IT governance and its relevance to your business, we need to define governance. One informal definition of the verb govern is "to enact and control the policies and standards of a group, organization, or country." Because governance is an enacting force, it must be further refined using operational terms -- i.e., governance is a process. And we can define "process" as "a series of actions, changes, or functions bringing about a result."¹ We'll cover the results of IT governance in a moment. First, let's assemble the pieces of this definition: "Governance enacts and controls the policies and standards of a group in a series of actions, changes, or functions which bring about a result." Now, let's extend this definition of governance in an operational context. Governance:

1. Establishes chains of responsibility, authority, and communication (decision rights)
2. Establishes measurement, policy, standards, and control mechanisms to enable people to carry out their roles and responsibilities²

In terms of IT governance, Item 1 above provides a static view of governance, bringing the structure of the enterprise into view, including how it functions and the roles and responsibilities for each member of the enterprise. As you may know, specification of the flow of decision rights is most often stated in a Responsible Accountable Consulted Informed (RACI) matrix. The RACI matrix is one of the artifacts of a governance solution.

Item 2 above provides a dynamic view of governance focused on business performance. The enterprise defines and institutes corporate policies (identifying the standards the business is going to follow and specifying a set of measures and controls) and, in turn, these policies are enforced by their business processes. Artifacts produced to define the dynamic view of governance include a policies library and governance effectiveness measures.

At its heart, governance in any form is about leadership. And IT governance is about the way in which leadership accomplishes the delivery of mission-critical business capability using Information Technology strategy, goals, and objectives. IT governance is concerned with the strategic alignment between the goals and objectives of the business and the utilization of its IT resources to effectively achieve the desired results.

IT governance disseminates authority to the various layers in the organizational structures within your business, while ensuring appropriate and prudent use of that authority. This doesn't refer simply to hierarchical structures; experience has taught us that network structures allow for specialization, teaming, and building infrastructure to support those teams. Specialization allows the sum of the parts of the organization to be greater than the whole.

However, structuring ourselves into networks can be counter-intuitive, and assembly of teams and sub-teams can often be a daunting task. Furthermore, experience has taught us that as teams grow in size and as the mission of the organization grows larger and more complex, the ability of individuals to communicate effectively and share a consistent vision decreases significantly.³ The addition of each new individual to a given project increases the potential communications traffic exponentially. Consequently, the need to implement a deliberate approach for the assembly of well-governed structures, processes, and tools requires deliberate planning, tactics, and methods.

Governance is not only for large organizations. Small organizations have a need for good governance as well. However, there are obviously a smaller number of control points to be deployed in a smaller operation.

Standard Operating Model Diagrams

http://www.knadel.com/thinking/house-views/standard-operating-model-diagrams/

Enterprise architecture, frameworks and operating models?

http://ashridgeonoperatingmodels.com/2014/06/03/what-does-an-operating-model-achieve/

Recharterting EA

http://www.executiveboard.com/exbd-resources/pdf/information-technology/architecture/EA-new-operating-model.pdf

Business Model vs Operating Model

https://www.linkedin.com/groups/Business-Model-vs-Operating-Model-4171511.S.89357822

Enterprise architecture, frameworks and operating models?

http://ashridgeonoperatingmodels.com/2014/06/03/what-does-an-operating-model-achieve/

Enterprise architecture, frameworks and operating models?

http://ashridgeonoperatingmodels.com/2014/06/03/what-does-an-operating-model-achieve/

The Key to Aligning IT Capabilities with Business Needs

http://www.oracle.com/us/c-central/cio-solutions/information-matters/aligning-it-capabilities/index.html

 

 

 

How to revamp an IT department for better business

http://www.it-director.com/enterprise/technology/content.php?cid=14454

 

How to revamp your IT operational plan without getting fired

http://searchdatacenter.techtarget.com/opinion/How-to-revamp-your-IT-operational-plan-without-getting-fired

Business Model Innovation: Ten Lessons from Nonprofits

https://www.bcgperspectives.com/content/articles/business_unit_strategy_innovation_business_model_innovation_ten_lessons_nonprofits/

The Key to Aligning IT Capabilities with Business Needs

http://www.oracle.com/us/c-central/cio-solutions/information-matters/aligning-it-capabilities/index.html

IT Operating Model Case Study: How Cisco IT Improved Development Processes with a New Operating Model

http://www.cisco.com/web/about/ciscoitatwork/business_of_it/IT_Operating_Model_web.html

Operating Models is now an open group

https://www.linkedin.com/groups/Operating-Models-2351797?gid=2351797&mostPopular=&trk=tyah&trkInfo=tarId%3A1397073802573%2Ctas%3Aoperating%20model%2Cidx%3A2-1-2

Business Models and Operating Models

http://ashridgeonoperatingmodels.com/2014/02/24/95/

http://www.ashridge.org.uk/Website/Content.nsf/wOPN/Designing+Operating+Models~Fact+File?opendocument

What is the difference between a business model and an operating model and who cares? First, I don’t think that it matters how you define terms like business model or operating model or business architecture. But it does help to be consistent. In this blog I will offer some definitions, not because I think they are more right than other definitions but because, in order to develop definitions, you need to think through all the moving parts.

For me a business model is the larger concept. An operating model is a part of a business model. An operating model is the engine at the heart of the business model that helps make the business model work.

A business model defines the following
- the stakeholders with whom the organisation will interact
- the offer or promise that the organisation is making to each stakeholder segment
(customers, employees, investors, suppliers, etc both internal and external)
- the contribution that each stakeholder segment is expected to make (work from employees, money from customers)
- the resulting financial models (income statement and balance sheet) taking account of size and growth ambitions
- the operating model that makes it possible for the organisation to interact effectively with its stakeholders

An operating model defines
- the core work processes that are needed to create and deliver value to each stakeholder group
- the equipment and technology needed to execute these core processes
- the information systems needed to support these core processes
- other processes needed to support the core processes, such as financial processes or HR processes
- the suppliers and supplier agreements needed to support the processes
- the people needed to do the work
- the organisation structure, decision rights and accountabilities needed to ‘govern’ and support the people
- the cultural context in which the people work
- the locations, buildings and ambiance where the core and support processes will be executed
- the suppliers needed to support the processes

Some people use the short hand of People, Process and Technology to describe an operating model. My own shorthand is PILOS – Process and equipment, Information technology, Location and property, Organisation and governance, Suppliers and agreements. All this is covered on the course Designing Operating Models

Designing Operating Models

http://www.ashridge.org.uk/Website/Content.nsf/wOPN/Designing+Operating+Models~Business+Model+and+Operating+Model?opendocument

 

An Operating Model is part of a Business Model: it is the engine that makes the Business Model work.

 

A Business Model defines the target customers and the offer to those customers, but it also defines the offer to other important stakeholders.

Value chains and operating models

http://ashridgeonoperatingmodels.com/2014/02/28/value-chains-and-operating-models/

The Key to Aligning IT Capabilities with Business Needs

http://www.oracle.com/us/c-central/cio-solutions/information-matters/aligning-it-capabilities/index.html

What does an Enterprise Architecture Function do, and is Mine Broken?

http://eavoices.com/2013/12/31/what-does-an-enterprise-architecture-function-do-and-is-mine-broken/

Graphic: A Generalised Operating Model for Enterprise Architecture, Source: Steve Nimmons

Designing Operating Models

http://www.ashridge.org.uk/Website/Content.nsf/wOPN/Designing+Operating+Models~Fact+File?opendocument