Business operating model

Business Operating Model 7 1.62 Target Based Costing 1 0.23... 

UPS did not stop with its synchronized commerce initiative, which, in my judgment, was more revolutionary then evolutionary. Chairman Eskew also codified and explained to UPS employees and to Wall Street, UPS s new organic growth strategy. And Eskew named this strategy the Four Quadrant model based on the University of North Carolina basketball team s use of the four-quadrant offense. As he stated, We will call our offense for innovation The Four Quadrants which focuses on innovating existing business operations internally and externally and, likewise, focuses innovation on new entrepreneurial ventures both internally and externally. ... 

Chemical Leasing is a revolutionary and new business model answering the growing ecological awareness of society and its demand on business operations to take responsibility for the results and by-products of their economic activities. 

However, Bush s vision of the importance of R D to national well-being, as well as his ideas about which institutions in society should do what kinds of R D, did get adopted, not only in government but in industry as well. His report ushered in what I call the classical period or the golden age of R D in America. Erom about 1950 to 1970, R D infrastructure and funding grew exponentially, largely on the Bush model. Responding to the Bush model of the centrality of basic research, many major corporations set up fundamental research laboratories, usually isolated from the company s business operations. 

At the same time as the framework was being rolled out, the Chemicals Business was putting in place a new operating model that would define its core business activities and provide a backdrop for decision-making (Fig. 8.20). It was agreed that SD would be placed at the heart of this model, emphasizing that SD is the way Shell chemicals companies do business. ... 

As a medium-size software company, ConSense GmbH possesses substantial experience in person-based modeling of operating and business processes. The company develops and distributes complete systems for business process modeling, and is thereby an important cooperation partner for the implementation of planned support tools. 

In the traditional approach to model a business into software engineering, a business operation is decomposed into autonomous functional units, the business functional units are mapped to software components, and the interfaces are specified for the software components to receive input data and to produce output data, and all the business rules, functional behavior, and business processes associated with the components are embedded within the functional components. 

The business model of the future will no longer be the broadly diversified chemical company of the past, but rather a provider focussing on the special products of its (few) business operations that have a leading global market position. Depending on the product portfolio, a distinction can be made between various categories of providers (see Fig. 3). 

The SCOR model tries to capture end-to-end business operation processes, including (Supply Chain Council, 2003) ... 

They foeus on a few business praetiees that reinforce one another to support the operating model and best aehieve operational excellence. 

The above models have moved the complex concept of services delivery beyond that of the immediate services business. The models indicate that the delivery of services requires the business to adopt both an internal and an external perspective. Rust and Metiers (2003) showed services to be eomplex in nature. They showed that a variety of approaches had been adopted, leading to the development of three key areas—customer behavior models, service quality impact models, and normative service models. Cook et al. (1999) showed services may be considered from a marketing or an operations focus. They suggested it may be possible to hold the service product constant and investigate the effects of the service process (and vice-versa). 

In principle, plant operators can deploy their own or even external persormel. Recently, some operators have gone over to leaving not only planning and erection, but also the complete operation of the plant up to the plant manufacturer. This is referred to as the so-called operator model. Apart from the costs, one reason for the emergence of this model is often a lack of qualified operating staff Another reason may be the operators tendency to concentrate on core business. 

In order to define the detailed mechanism of CAPE-SAFE it is essential to define the business model of all related functions like design, operation, and maintenance. A team has been established between Tokyo Institute of Technology, Kyushu University, and Okayama University to carry out this task. The result is a complete set of business activity models, which cover the design phase while considering safety and operation factors, under the name of safety operational design . The developed business models are used as a reference in this book to define the design business processes that requires interaction with safety environment i.e. CAPE-SAFE. 

Importantly, a key component in financial modeling is the effective control of cash. Its steady and healthy circulation throughout the entire business operation has repeatedly been shown to be the basis of business solvency (Howard and Upton 1953). Indeed, the availability of cash governs the production decisions taken in a company. For this reason, models of operations of the supply chain should not consider cash as an infinite resource. A production plan cannot be implemented if it violates the minimum cash flow imposed by the firm (i.e., if the amount of raw materials and/or utilities required cannot be purchased due to a temporary lack of cash). 

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