Navigating Business Model Redesign: The Compass Method for Identifying Changes to the Operating Model

Paola Lara Machado (Corresponding author), Montijn van de Ven, Banu Aysolmaz, Oktay Turetken, Jan vom Brocke

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
52 Downloads (Pure)

Abstract

In today’s dynamic business environment, organizations constantly change their business models to respond to emerging digital technologies and shifting customer expectations. It is a fundamental challenge to translate these changes into the organization’s operating model. When organizations redesign their business models, significant adjustments to the operating model and its underlying business processes are necessary to ensure the effective delivery of the value proposition to customers. Existing research falls short in detailing how changes to the business model at the tactical level impact the operating model at the operational level. To address this gap, this paper introduces the Compass Method. This method provides guidance for decision-makers at the tactical and operational levels in identifying necessary changes to their operating model using a set of operating model design cards. The method has been developed following the design science research methodology and is grounded in extant knowledge from both business model research and process management research. Three rounds of design and evaluation of the method were completed in multiple settings. The study contributes to the understanding of the relationship between business models, operating models, and business processes, paving the way for the development of complementary methods and tools to further investigate this relationship.

Original languageEnglish
Pages (from-to)607-638
Number of pages32
JournalBusiness and Information Systems Engineering
Volume66
Issue number5
DOIs
Publication statusPublished - Oct 2024

Keywords

  • Business model
  • Business process management
  • Design science research
  • Operating model
  • Organizational design
  • Process change

Fingerprint

Dive into the research topics of 'Navigating Business Model Redesign: The Compass Method for Identifying Changes to the Operating Model'. Together they form a unique fingerprint.

Cite this