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The Business Model

By Peter Elings & Doug Oliver  |  Posted 09-24-2010 Print

Does your organization understand the underlying driving business force of the entire organization?  One of the most important first steps to global transformation is to understand how common your business model is across the globe. For example, if your desired future state is to run a global sales operation, but your current business model is one where the organization sells to businesses (B2B) in one country and to consumers (B2C) in other countries, it is time to solidify your global business design. Do you want to operate distinctly different sales operations for distinctly different segments? Or, can you standardize with a common sales process?

For companies that have grown through acquisition, business variations and decision trees tend to be more complex and geographically governed or administered. Because processes are tweaked over time, these organizations can experience more time-intensive and costly transformations. For these companies, it is even more critical to spend the necessary time on business model assessment prior to transformation. In evaluating your business model, consider the following self-assessment checklist:

  1. Where do you operate?

  2. Do you share a global, regional or local customer base?

  3. Is your supply chain globally integrated?

  4. In which markets is your business still growing and evolving, and how are you expanding your portfolio?

  5. Are you planning to acquire or develop new lines of business?

  6. How do you operate?

  7. Are your processes executed the same way across different countries and business units?

  8. If not, how much variance is there in your processes?

  9. Are these variances driven by country specific legal requirements, cultural difference or market demands?

  10. Are your process variances the result of acquisitions or mergers?

  11. Can your company transform itself from fragmented and non-integrated business units to a common global process orientation that includes cross communication, design commonalities, and sharing of best practices?

Peter Elings is a Director in Deloitte's Technology practice. Doug Oliver is a Principal in Deloitte's Technology practice.


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