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In order for a business strategy to be implemented the organization must establish a set of rules of how the business will be conducted, this is referred to as the Business Operating Model. However, it should be understood that a Business Operating Model is not something trivial for an organization to change. It is intrinsic to the way an organization works hence it retains more of an emergent nature rather than an episodic one. The model includes, but is not limited to: what is the high level business value chain; what products and services will be sold; via what distribution channels; locations; and the degree of business integration and standardization desired. Some call this the Business Architecture, and it must always remain holistic and pragmatic.
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