The operating model of an organization is more important as the organization grows larger and diversifies into multiple businesses. An example may be a healthcare organization that consists of multiple hospitals and clinics. The two primary concepts to think about when evaluating the operating model of this business are standardization and integration.
An organization might allow the hospitals and clinics to run autonomously, in terms of deciding what technology they will use, or how they will purchase supplies, so that they basically function as independent businesses that just happen to have a common owner. This organization would have low standardization and integration.
Another organization might integrate all of the records of the different hospitals and clinics into a single Electronic Medical Record. They may manage the the human resource, payroll, purchasing, and inventory activities of all of the hospitals and clinics in the same Enterprise Resource Planning system. If the organization documents all of the hospitals’ and clinics’ health care activities using these kinds of integrated technology, then they would be considered to be high on the integration and standardization scale.
A chart on page 29 of the text that demonstrates these concepts and evaluates the particular operating model that is the result of how these kinds of activities are shared or are independent between components of the business.After considering the existing structure of your project organization, identify an operating model for your organization. Write a short paper in which you do the following:
Describe the chosen operating model in terms of business process integration.
Describe the chosen operating model in terms of business process standardization.
Compare the selected organization to the sample organizations using the chosen operating model in terms of business process integration.
Compare the selected organization to the sample organizations using the chosen operating model in terms of business process standardization.
Describe the chosen operating model in terms of the financial benefits available to the organization as a result of the selection.
Explain your rationale for the selected operating model.
Follow APA style and formatting guidelines for references and citations, and create a document that is clearly written and free of grammatical errors.
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