This week I would like to reflect on the operating model of a business. In my experience this critical business model is quite often not given the attention or direction it is so duly required. Most companies leave this level of decision making to leadership either in a specific business units or divisions. Giving them more lateral than they I believe they should have.
The problem with this approach is there are never any synergies across the different business units or divisions. When this is the case having a shared service, such ast IT, to support them is often quite reactive. I believe business units and divisions are given this type of autonomy because they may be doing well with bringing in money for the business; which leads to senior leadership giving more slack. Though this is good in the short term, long term it could erode the business and ultimately lead to the demise.
Defining a clear operating model for the business that all share services can execute to is key to a company becoming dynamic and agile. Enterprise architecture typically will show the value of defining the operating model and given case studies and examples of how this can be successful.
I would like to focus on the topic of foundation for execution. This week’s chapter readings point out how many companies have done leveraged technology to enable their businesses to be more responsive and streamline processes to executive with more intelligence and speed. I reflect on this because I believe this to be a competitive advantage and companies that begin to implement a solid foundation for execution will profit more over the ones that do not.
It has been my experience that companies do not know they don’t have a foundation for execution. One reason for this is that they are looking at it wrong. They see their specific department, which has a specific functions within the organization. They may have their own system that automates their processes and keeps makes their employees very efficient. However, they may not know that either their system or their processes may have direct conflict with another department within the organization. Making the handoff process cumbersome, confusing or even faulty. So they each individual department may be functioning well, the entire ecosystem is completely dysfunctional. Wasting time and money to execute. Enterprise Architecture, brings that holistic view and architecture to the enterprise to root out these types of scenarios and assists to bring completeness to the process resulting in a foundation for execution.
this is a test for the blog site..