Enterprise Architecture as a Strategy defines operating models as:
Operating Model
The necessary level of business process integration and standardization for delivering goods and services to customers. - Enterprise Architecture as a Strategy
There are metaphorical sliders for integration & standardization, the extremes of both ends are problematic. The set points should be carefully selected (by way of what actions you take), and those Paved Roads should be recognized & leveraged as assets for the business.
Definitions
Integration: the extent to which business units utilize the same data Standardization: the extent to which business units utilize the same processes
There are Four Types of Company Operating Models, based on having high or low integration and standardization levels.
Tons of Integration:
- 👍 Enables better end-to-end connectivity
- 👍 Increases efficiency of the status quo
- 👎 Requires shared understanding of data across business units
- 👎 Change management becomes more complex
Tons of Standardization:
- 👍 Efficiencies created across business units
- 👍 Reduction in variability
- 👎 Limits localized efficiencies that could be had
- 👎 Reduces the capability to innovate at the edges