4 types of operating models

• Coordination operating model. Think of coordination as shared access to data. This type of operating model calls for high levels of integration but low standardization. This essentially means that many key parts of the business are integrated with one another. However, each business unit or team has its own way of doing things. 

• Unification operating model. This is probably the most hands-on type of operating model. The unification operating model runs on a theory that when things are tightly integrated and tightly standardized, companies maximize efficiency. The risk here is that there’s little autonomy or wiggle room for how different business units operate. 

• Diversification operating model. This type of operating model applies to companies that have very few shared customers, suppliers, or even ways of doing business. Essentially, this model helps companies diversify their products and services to different customers to avoid a central hub to limit control over different business units.  

• Replication operating model. Another way to think about this operating model is autonomy but with some standardization. This type of operating model makes sure different business units have autonomy over their operations. But first, there’s a standardization of how things are done. 

Operating Models

 4 Types of Operating Models

According to Ross, Weill, and Robertson, there are four operating models for how a company addresses business process integration and business process standardization.

1. Diversification (low standardization, low integration)
2. Coordination (low standardization, high integration)
3. Replication (high standardization, low integration)
4. Unification (high standardization, high integration)
5. 
   

Two Questions to Determine Which Quadrant Your Company Belongs In

According to Ross, Weill, and Robertson, companies adopt different models at different levels.  For example, they might adopt one operating model at the enterprise level, but then a different model at the division, business unit, region, or other levels.

To figure out which of the four quadrants your company or business unit mostly belongs, Ross, Weill, and Robertson suggest asking two questions:

1. To what extent is the successful completion of one business unit’s transactions dependent on the availability, accuracy, and timeliness of other business units’ data?
2. To what extent does the company benefit by having business units run their operations in the same way?

This helps you figure out your business process integration requirements and your business process standardization requirements.

Diversification

Diversification is effective “independence with shared services.”

Ross, Weill, and Robertson write:

“Diversification applies to companies whose business units have few common customers, suppliers, or ways of doing business.  Business units in diversified companies offer different products and services to different customers, so central management exercises limited control over those business units.”

Coordination

Coordination is “seamless access to shared data.”

Ross, Weill, and Robertson write:

“Coordination calls for high levels of integration but little standardization of processes.  Business units in a Coordination company share one or more of the following: customers, products, suppliers, and partners.  The benefits of integration can include integrated customer service, cross-selling, and transparency across supply chain processes.  While key business processes are integrated, however, business units have unique operations, often demanding unique capabilities.”

Replication

Replication is “standardized independence.”

Ross, Weill, and Robertson write:

“Replication models grant autonomy to business units but run operations in a highly standardized fashion.  In a Replication model, the company’s success is dependent on efficient, repeatable business processes rather than on shared customer relationships. 

The business units are not dependent on one another’s transactions or data; the success of the company as a whole is dependent on global innovation and the efficiency of all business units implementing a set of standardized business processes.   Accordingly, business unit managers have limited discretion over business process design, even though they operate independently of other business units.”

Unification

Unification is “standardized, integrated processes.”

Ross, Weill, and Robertson write:

“When organizational units are tightly integrated around a standardized set of processes, companies benefit from a Unification model.  Companies applying this model find little benefit in business unit autonomy.  They maximize efficiencies and customer services by presenting integrated data and driving variability out of business processes.”

For a deep dive into each of the operating models as well as case studies and examples, check out Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, by Jeanne W. Ross, Peter Weill, and David C. Robertson.

It’s one of those kinds of books that you can tell is born from experience, rather than just theory.  It’s rich with data and authoritative, prescriptive guidance to help you mature and transform your company to compete in today’s arena (it’s a powerful collection of proven practices and timeless advice, and extremely relevant to our emerging digital economy.)

Make your operating model a clear choice.  Choose the appropriate levels of integration and standardization that help you build a strong foundation for execution and improve your strategic agility.

Theo Baloyi - The Founder Of Bathu

 

Theo Baloyi is a South African entrepreneur and the founder of Bathu Swag, a footwear brand that specializes in the production of uniquely South African sneakers. Baloyi started the company in 2015, with the aim of creating a brand that would represent African culture and identity in the global fashion industry. Bathu Swag has become a popular brand in South Africa and has gained recognition for its innovative and stylish designs. Baloyi has been recognized for his entrepreneurial achievements, including being named one of Forbes Africa's 30 Under 30 in 2018.

The Bathu story is more than just a story of Sneakers. It's a story of owning your destiny, of staying true to who you are, persevering, following your dreams, and doing something you are passionate about.

It's a story of walking your journey.

Our founder, Theo Baloyi’s story is one worth hearing as it motivates you to work hard and believe in yourself throughout all the obstacles and challenges that you may encounter.

The early days of Bathu
In 2009, Theo relocated to Johannesburg to stay with his uncle in Alexandra while studying for his BCom Accounting degree. Amid all the challenges, Theo had a goal to walk his journey and make it work, so he continued his studies and eventually graduated as an accountant.  

As a qualified Accountant, Theo was presented with the opportunity of working at one of the top accounting and advisory firms in the world. Based in South Africa for 2 years, and later seconded to the Middle East for 3 years, it was during this period that the idea for his business came to him.

In his travels he noticed that there was something missing - an African Sneaker brand, portraying an authentic African story. So he got to work. 

In 2015, after months of conceptualizing, feasibility studies, and being rejected by 13 different factories, the Mesh Edition Sneaker was born.  

Once in production, and having dealt with the rigorous 18-month processes of design, production, quality assurance, and financing related to the Mesh Edition, Theo founded the business - Bathu - meaning shoes in Kasi slang - and launched 100 pairs of Mesh Edition to the people of Alexandra, Soweto, Midrand, and Thembisa. 

The launch went incredibly well and the first 100 pairs of Mesh Edition were sold out quickly. Then in 2016, Bathu released 400 pairs of Mesh Edition which created pandemonium. So big was the release, that the Bathu website crashed 4 hours after the announcement and customers were clambering over each other to get their hands on a pair. 

In 2017, Bathu sealed its first corporate collaboration with an incubation hub in
Johannesburg which led to the release of a further 1000 pairs of Mesh Edition sneakers. In that same year, Bathu launched its first limited edition Mesh Edition Sneakers in White, which sold out in days. 

Bathu then bought its first delivery vehicle and opened its first store in Newtown, Jozi in 2018. The Newtown store was quickly followed by a second store in the heart of Pretoria, which later relaunched in a bigger space, providing customers with increased capacity and an innovative shopping experience. 

From there, demand grew and Bathu has since opened up additional stores in Port Elizabeth, Bloemfontein, Kimberley, Thohoyandou, Polokwane & Rustenburg where the responses have been nothing short of incredible. 

The Future of Bathu
As part of our vision for 2020, Bathu plans to open 7 more stores around Mzansi. 
Both Theo & Bathu pride themselves on creating an African footprint across the
globe and there are even plans to position the brand across Africa with more retail store openings starting with Botswana in 2021.

More recently, in January 2020, Bathu acquired a 3700 sqm warehouse in Centurion which will house the current staff base of 68 people, (80% of whom are from Alexandra). This figure is expected to rise to 100 people by June 2020 to help combat the disastrous local unemployment figures by creating jobs and reigniting hope for families and individuals. Bathu hopes to achieve this target by continuing to use an end-to-end value chain approach encompassing a business model that maintains its own vertical through direct production, sales, distribution, and logistics. 

Bathu now offers a range of sneakers and related products for children and adults, from the standard Mesh Edition to the Mesh Edition 2.0, Journey Edition Suede, and the Journey Edition Leather, with more to come. 

Accolades
Through his journey and in recognition of their successes Theo & Bathu have been awarded the following accolades:

• Young Entrepreneur of the Year 2019 – South African Business Premier Awards.
• Forbes Africa 30 under 30 – 2019.
• Emerging Business – Entrepreneur of the Year 2019 – Sanlam & Business Partners.
• Fastest Growing Business Brand 2019 (Finalist) – National Business Awards
• Young Executive of the Year 2019 (Finalist) – National Business Awards
• SME Award 2019 (Finalist) - Vision 2030 Awards
• 2019 Most Influential Young South African in Business - Avance Media
• Young Entrepreneur Of the Year - Gauteng Premier Service Excellence Awards
• BBQ Awards - Ndlovu Jewellery Transformation Champion of the Year Award 2020
• BBQ Awards - Hennessy XO Businessman of the Year Award 2020
• Top Empowerment Awards 2020 - Top Empowered Young Achiever of the Year. 

Bathu has also collaborated with iconic brands like OPEL, Forbes Africa, Sprite, and ABInbev (Castle Lite) among others and we are hopeful of making meaningful connections with other brands in the near future. 

How to start a business in 2023?

 Starting a business can be an exciting and rewarding experience. Here are some general steps to consider when starting a business in 2023:

1. Conduct Market Research: Before starting any business, it is important to conduct market research to determine whether your business idea is viable and if there is a demand for your product or service. You will want to understand your target market, competitors, and potential customers.

2. Develop a Business Plan: A business plan is essential to starting a successful business. It should include a description of your business, market analysis, management, and organizational structure, marketing and sales strategy, financial projections, and funding requirements.

3. Choose a Legal Structure: You will need to decide on a legal structure for your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own advantages and disadvantages, and you will want to choose the one that best suits your needs.

4. Register Your Business: You will need to register your business with the appropriate government agencies, including obtaining any necessary licenses and permits.

5. Set Up Business Operations: This includes setting up a business location, hiring employees (if necessary), purchasing equipment and supplies, and establishing a bookkeeping system.

6. Launch Your Business: Once you have completed the previous steps, you are ready to launch your business. Be sure to promote your business through advertising and marketing to reach your target audience.

7. Continuously Evaluate and Adjust: Starting a business is an ongoing process. Continuously evaluate and adjust your business plan as needed to ensure that your business is successful and profitable.

Starting a business can be a challenging process, but with careful planning and preparation, it is possible to create a successful and profitable business in 2023.

Ways of making money in 2023

 There are many ways to make money in 2023, and the best approach for you will depend on your skills, interests, and the amount of time and effort you are willing to invest. Here are some popular methods:

1. Freelancing: If you have a particular skill set, such as writing, web design, or programming, you can offer your services to clients online through freelance platforms like Upwork, Fiverr, or Freelancer. Freelancing allows you to set your own rates and work on projects that interest you.

2. Online tutoring: If you are knowledgeable in a particular subject area, you can offer your expertise as an online tutor through platforms like Tutor.com, Chegg, or Wyzant. You can set your own rates and work with students from around the world.

3. Selling products online: You can sell physical or digital products online through marketplaces like Amazon, Etsy, or eBay. You can also create your own online store using platforms like Shopify or WooCommerce.

4. Investing in stocks and cryptocurrencies: You can invest in stocks, mutual funds, or cryptocurrencies like Bitcoin, Ethereum, or Dogecoin. This requires some knowledge of the market and a willingness to take on some risk.

5. Affiliate marketing: If you have a website or social media following, you can earn commissions by promoting products or services through affiliate marketing programs like Amazon Associates, ClickBank, or ShareASale.

6. Online courses: If you are an expert in a particular subject area, you can create and sell your own online courses through platforms like Udemy, Teachable, or Skillshare.

7. Delivery services: With the rise of online shopping, delivery services like Instacart, DoorDash, or Uber Eats have become popular ways to make money on the side. These services allow you to deliver groceries, meals, or packages to customers in your local area.

These are just a few examples of the many ways to make money in 2023. Keep in mind that while there are many legitimate opportunities, there are also scams and fraudulent schemes. Always do your research and be wary of offers that seem too good to be true.

What is an entrepreneur?

 An entrepreneur is a person who starts and runs their own business venture, taking on financial and personal risk in the pursuit of a potentially profitable opportunity. Entrepreneurs are often associated with innovation and the creation of new products, services, or business models.

Entrepreneurs typically have a high level of autonomy and responsibility for the success or failure of their businesses. They are involved in all aspects of the business, from developing the initial idea, securing funding, and building a team, to marketing, sales, and operations. Entrepreneurs must be adaptable, creative, and persistent in the face of challenges and setbacks.

Entrepreneurship can take many forms, from small-scale sole proprietorships to large corporations, and can be found in a wide range of industries and sectors. Successful entrepreneurs often possess a combination of business acumen, technical expertise, leadership skills, and a strong drive to succeed.

In addition to financial rewards, entrepreneurship can offer personal fulfillment, autonomy, and the opportunity to make a positive impact on society. However, entrepreneurship also entails risks and challenges, including financial uncertainty, long hours, and the need to constantly adapt to changing market conditions.

What is a freelancer?

 A freelancer is a self-employed individual who offers their services to clients on a project-by-project or contractual basis. Freelancers work in a variety of industries, such as writing, web design, programming, graphic design, photography, and many others.

As a freelancer, one is responsible for finding clients, negotiating fees and contracts, managing project timelines and deliverables, and invoicing and collecting payments. Freelancers often work remotely from their own workspace, using their own equipment and software.

Freelancing provides individuals with flexibility and autonomy in their work, as they can choose their own projects and clients, set their own hours and rates, and have greater control over their work-life balance. However, freelancers also take on the risks and responsibilities of running their own businesses, including finding and maintaining a steady stream of clients, managing their finances, and paying their own taxes and benefits.

Overall, freelancing can be a rewarding and fulfilling career path for those who are motivated, organized, and skilled in their field.

How to make money online?

 There are many ways to make money online, and the best approach for you will depend on your skills, interests, and the amount of time and effort you are willing to invest. Here are some popular methods:

1. Freelancing: If you have a particular skill set, such as writing, web design, or programming, you can offer your services to clients online through freelance platforms like Upwork, Fiverr, or Freelancer. Freelancing allows you to set your own rates and work on projects that interest you.

2. Online tutoring: If you are knowledgeable in a particular subject area, you can offer your expertise as an online tutor through platforms like Tutor.com, Chegg, or Wyzant. You can set your own rates and work with students from around the world.

3. Selling products online: You can sell physical or digital products online through marketplaces like Amazon, Etsy, or eBay. You can also create your own online store using platforms like Shopify or WooCommerce.

4. Online surveys: You can earn money by participating in online surveys through websites like Swagbucks, Survey Junkie, or Vindale Research. While this option won't make you rich, it can be a good way to earn a little extra income in your spare time.

5. Affiliate marketing: If you have a website or social media following, you can earn commissions by promoting products or services through affiliate marketing programs like Amazon Associates, ClickBank, or ShareASale.

6. Online courses: If you are an expert in a particular subject area, you can create and sell your own online courses through platforms like Udemy, Teachable, or Skillshare.

These are just a few examples of the many ways to make money online. Keep in mind that while there are many legitimate opportunities, there are also scams and fraudulent schemes. Always do your research and be wary of offers that seem too good to be true.