Operating Model

The decision on an operational model defines which strategic opportunities the organization should and should not take advantage of since it directs the development of business and IT capabilities. In other words, the operational model serves as a key component of corporate strategy. Additionally, each operating model has varied requirements for the necessary infrastructure as well as for the management practices, rules, and procedures that make up each operational model. As a result, the operational model may play a significant role in the creation of distinct organizational units.        

In order to provide value to its customers and stakeholders, a firm arranges its people, processes, technology, and data according to its operational model. An operating model is a broad outline of how a business will enable and carry out its strategies. Every operating model offers various growth opportunities and obstacles.  An organization's operating model determines how its people, procedures, technology, and data are put together to best serve its stakeholders and customers. A general idea of how a business will enable and carry out strategies is represented by an operating model. The potential and obstacles for growth vary depending on the operational strategy.

Enterprise architecture, which reflects the integration and standardization requirements of the company's operational model, is the organizational logic for business operations and IT infrastructure. Many businesses approach the enterprise architecture exercise by creating numerous drawings and analyzing both current and future system capabilities. However, extensive analysis does not concentrate resources on what matters. Finding the procedures, information, tools, and customer interfaces that turn the operating model from a vision to reality is essential for efficient business design. For each of the four operating models, there are distinct key components of enterprise architecture. Most businesses may find procedures that fall into each operating model, but they must choose just one operating model to inform management decisions and technology implementations. Based on general business operating principles, management can then divide up duties across business divisions and IT. Companies can address competing needs by implementing several operating models at various organizational levels. An operating model aids in outlining the variety of strategic goals that a business can easily undertake. A steady method of distributing products and services is offered by the operational model as long as it offers enticing possibilities. A company can better enhance its IT and business process capabilities by concentrating on the operating model rather than on specific business goals. With such a solid basis, IT can discover potential strategic initiatives in a proactive rather than reactive manner. Management outlines the role of business process standardization and integration in the organization's everyday choices and tasks when choosing an operating model.

 In order to provide value to our clients and stakeholders, Cognizant uses the Diversification operating model to structure our people, processes, technology, and data. We can better match our strategy, structure, culture, and capabilities with our vision and objectives thanks to the operational model. The operational model also enables us to use cloud, AI, and other technologies to develop fresh goods, services, and customer-focused experiences. The operational model is a dynamic and iterative process that enables us to continually develop and improve rather than merely being a static structure.