What is your Operating model? (Ross&Weill) - Operating model - Unification
4 important questions on What is your Operating model? (Ross&Weill) - Operating model - Unification
What is the definition of the Unification quadrant?
- High level of process integration
- High interdependence between units, little autonomy
- High level of process standardisation
- Common processes, common systems
- Operational excellence, efficiency
What are the growth strategies for the unification quadrant?
- Growth strategy
- Organic: leverage economies of scale, grow products and markets incrementally
- Acquisition: leverage existing foundation; rip & replace infrastructure
How can the unification quadrant be applied for the Delta Air Lines?- 1997
- Low score KPI’s: late, luggage lost, many complaints
- Silo’s in business & IT
- Low score KPI’s: late, luggage lost, many complaints
- Silo’s in business & IT
- Change: integration & standardization of 4 key processes
- Client process
- Operational process related to flights
- Business reflexes
- Employee relationship management
- 2001: consistent in top-3 KPI-scores
- However: bust after crisis 2001
- Chapter 11 bankruptcy protection 2004, then. restart & reorganization, end 2006 back at position end 2001
- A good foundation for execution is not a guarantee for success
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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What are challenges and opportunities for unification?
- Challenge: Process integration (data standardization) makes acquisitions more challenging
- Opportunity:
- Process integration facilitates expansion into new markets through organic growth.
- Enables acquisition through ‘rip & replace’ approach
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
