Article Z - What is the Core Diagram? (Ross&Weill) - Unification and Diversification Quadrants Core Diagram
5 important questions on Article Z - What is the Core Diagram? (Ross&Weill) - Unification and Diversification Quadrants Core Diagram
What are the steps to develop a core model per Operational Model type?
What are the stages of making a unification core diagram?
- 1. Identify the key customers (and channels)
- 2. Identify the key processes (to be) standardized and integrated
- 3. Identify the shared data to better integrate the processes and serve the customers;
- 4. Identify automating and linking technologies (optional elements are shown with a dashed outline in the figure)
- Example: Delta Airlines
- EA Driver: employees, gate agents etc lacked the information to do their jobs.
- Starting point for EA: “as many IT platforms as business functions” (17 platforms)
What were the 4 new core processes?
- The new core diagram (To Be):
- Definition of 4 new core processes:
- customer experience,
- operational pipeline,
- business reflexes
- employee relationship management
- Nine data critical data types for process execution (nine core databases)
- Surrounding this data is Delta nervous system (linking technology)
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What are the characteristics of a diversification core diagram and how can you make one?
- low integration and low standardization.
- Each business (unit) runs independently (own data, own processes)
- To make a core diagram:
- Start with the technologies that can be shared
- Incorporate processes, data, customer types only when needed for the operating model
Diversification Example: Carlson Companies
- Set of autonomous companies; shared service capability;
- Core diagram emphasizes technologies: sharing technical infrastructures
- Business units retain control over local business processes
- → Lean core Diagram at the overall company level
- At division level: other core model types may apply!
How does this model look like?
- At division level: other core model types may apply!
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