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

Author

Listed:
  • Paola Lara Machado

    (Eindhoven University of Technology)

  • Montijn Ven

    (Eindhoven University of Technology)

  • Banu Aysolmaz

    (Eindhoven University of Technology)

  • Oktay Turetken

    (Eindhoven University of Technology
    European Research Center for Information Systems)

  • Jan Brocke

    (European Research Center for Information Systems
    University of Münster
    University of Liechtenstein)

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.

Suggested Citation

  • Paola Lara Machado & Montijn Ven & Banu Aysolmaz & Oktay Turetken & Jan Brocke, 2024. "Navigating Business Model Redesign: The Compass Method for Identifying Changes to the Operating Model," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 66(5), pages 607-638, October.
  • Handle: RePEc:spr:binfse:v:66:y:2024:i:5:d:10.1007_s12599-024-00892-5
    DOI: 10.1007/s12599-024-00892-5
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