The increase in busi­ness com­pe­ti­tion these days is unde­ni­able. Dis­rup­tion is affect­ing entire sec­tors of busi­ness with the onslaught of new tech­nolo­gies and oper­at­ing mod­els. With new chal­lengers con­stant­ly enter­ing the fray, busi­ness­es must not only stay on their toes but also be pre­pared to adapt and inno­vate at a momen­t’s notice. The mar­ket is no longer a gen­tle stream, but rather a tur­bu­lent sea, where only those with a sharp strat­e­gy, a clear vision, and a relent­less dri­ve to suc­ceed can hope to weath­er the storm and emerge victorious.

Busi­ness­es that oper­ate with a well-defined and opti­mized oper­at­ing mod­el have a bet­ter chance of suc­ceed­ing in a fierce­ly com­pet­i­tive envi­ron­ment, for exam­ple by future­proof­ing through use of tech­nol­o­gy and automa­tion. Over­all, a good oper­at­ing mod­el pro­vides a clear frame­work for how the orga­ni­za­tion should func­tion in order to achieve its goals.

An oper­at­ing mod­el defines the process­es, sys­tems, con­trols and resources that are nec­es­sary for the orga­ni­za­tion to cre­ate, deliv­er, and cap­ture val­ue. It also out­lines the roles and respon­si­bil­i­ties of dif­fer­ent func­tions and indi­vid­u­als with­in the organization.