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

Paola Lara Machado (), Montijn Ven (), Banu Aysolmaz (), Oktay Turetken () and Jan Brocke ()
Additional contact information
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
Jan Brocke: European Research Center for Information Systems

Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, 2024, vol. 66, issue 5, No 5, 607-638

Abstract: 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.

Keywords: Business model; Operating model; Business process management; Organizational design; Process change; Design science research (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12599-024-00892-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:binfse:v:66:y:2024:i:5:d:10.1007_s12599-024-00892-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12599

DOI: 10.1007/s12599-024-00892-5

Access Statistics for this article

Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK is currently edited by Martin Bichler

More articles in Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK from Springer, Gesellschaft für Informatik e.V. (GI)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().