How to Accelerate Your Growth Through Operating Models

Digitally driven companies have gained more recognition and seen increased growth in business in recent years. And the credit goes to the digital conversion of operating models.

The increased digitalisation of business operating models has influenced various industries and sectors. The digital operating model has impacted the leading companies, start-ups and the whole consumer marketing industry.

It affected the ability of companies to reflect on their current strategy and explore new business opportunities systematically. It offered various developed technologies, business models, and customer experiences.

The conversion is known as the next-generation operating model. It is characterised by an ongoing effort to accelerate customer journey and company processes by integrating cutting-edge technologies and smart operational methods.

The combination is typically built around a business model unique to the industry, enabling the business to grow, change, and scale quickly.

Why are operational models necessary for the growth of an organisation?

Selecting a working model is challenging and requires a commitment to doing something. But with the assistance of operating models, businesses can make deliberate choices around integrating shared data.

Operating models are based on how you handle integration and standardisation for your business processes. An operating model can influence your market and impact how you compete.

GrowthJockey believes that an operating model defines the strengths and weaknesses of the organisation by mapping business processes and infrastructure. Businesses can gain increased efficiency, coordination, transparency, and agility in their internal working structure with the help of an advanced operating model.

And, through deliberate choices around the standardisation of business processes, they can drive efficiency and predictability across the company. Through this approach, businesses can dramatically increase proper functioning and efficient growth.

Types of operating models

Operating models are highly dependent on the type of business you have. The operating model is classified into four categories.

These four models are grounded in the exact purpose of efficiently reshaping your organisation's essential areas that improve the operating model. Let's look at these prominent and successful models that are helpful for the growth of every organisation.

1. Diversification (low standardisation, low integration)

The diversification model is for companies that want to evolve constantly. The practice of diversification involves adding a new product to the supply chain to boost profits.

These products are a new segment of the industry your company already employs, which is known as business-level diversification. Alternatively, corporate-level diversification occurs if you penetrate a new market.

Depending on your company's industry, size, and ambition, one of these growth strategies is more likely to be a fit than the others. They are:

• Penetration

• Product Development

• Market Expansion

• Diversification

2. Coordination (low standardisation, high integration)

The product and shared customer or supplier data define the Coordination Operating Model. They are operationally unique business units that can influence each other's transactions.

These independent business units have extensive control over how business processes are designed to fit their specialised operations.

• Outline the procedures necessary to conduct cross-system transactions regarding goals and sub-goals.

• Check the progress toward and confirmation of the plans and sub-goals of the pathway.

• Track and measure the progress of clients in the following ways.

• Maintain accountability and adherence of the individual and responsible coordination agent.

3. Replication (high standardisation, low integration)

The replication model is used to distribute data between different business systems. The replication model level defines which master and transaction data are conveyed to which method.

A replication model contains one or more outbound implementations to which one or more business systems can be assigned as recipients. The independent business units in a Replication Operating Model accelerates a combined approach to process integration and standardisation.

4. Unification (high standardisation, high integration)

The Unification Operating Model is dependent on a regionally distributed collection of business operations that are globally interconnected. Business units have similar functions where processes and data are designed to be shared.

To monitor the composition of the business units, centralised administration of these operations often uses a matrix approach. However, the business units have distinct functions.

In this model, high-level business owners work to standardise business processes across the business units. Unification is built on a standard set of procedures and information to operate within the framework of each business unit.

How to grow brand value through the operating system?

If you are setting up to expand your business and searching for how to grow brand value by operating system, then dive into the components listed below.

Of course, every business wants to deliver value to its customers. If so, then they need to have a robust operating model. A working model that covers all the elements is a must. So, let's dig into the major components that define a transparent functional model.

1. Strategy

Strategy is the first step you need to take while making an operating model. The business's core strategy is to create a set of design principles. The strategy helps to prioritise existing strengths and readdress the weaknesses.

2. System

The system breaks down the components into various sections to show how it works.

When creating or reviewing an operating model, understanding the inner workings of each business sanction is needed. Once you know the system of your business, you can determine how they fit into your strategy and what adjustments are required.

3. Structure

The structure represents the department, roles, and teams to deliver the operating model. Each framework of the business is unique and has pros and cons.

As such, when creating the operating model, structure helps to configure elements, including capability, capacity, and contribution.

4. Talent

By strengthening talent, a business can support leadership. Increasing the right talent in the organisation will improve growth. Companies that invest in their workers' development and engagement will likely be creative and successful.

5. Technology

Technology increases the efficiency of systems, products, and services. It assists in managing contacts and employee records, maintaining data flow, and tracking and streamlining operations.

However, these days, we have access to services from business growth agencies like Growth Jockey. GrowthJockey enables brainstorming ideas and creating operating models which can boost 10x revenue growth in business through their strategic growing services.

Perks of getting started with an operational model

The operating models growth is a new way of running the organisation that combines operations capabilities. They perform it in an integrated, well-sequenced way to achieve step-change improvements in revenue, customer experience, and cost.

The benefits include:

• Supporting strategic initiatives effectively
• Improving automation and workflows
• Enabling financial transparency
• Reducing costs and improving profitability
• Enhancing decision-making processes

Bottom-Line

In a nutshell, the operating models facilitate all the business model aspects of the owner's delivery. In simpler terms, if you don't have a vigorous operating model in business, you may face hindrances to reaching your milestones.

The operational framework makes it easier for businesses to find roles and ways to reach the targeted stage. After focusing on those key aspects, it details the structure of what your business will look like.

At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.

Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!