Operating Models, Operational Excellence and Banking
Posted: 4 Nov 2008 Last revised: 13 Dec 2010
Date Written: October 31, 2008
Purpose - This paper responds to emerging concerns from regulatory authorities and investors about service operations mis-management in banking. It identifies, defines and justifies a problem statement derived from those concerns, and presents the objectives of a solution proposition for that problem from the first two stages of an ongoing design science research programme.
Design/methodology/approach - A summary of relevant published comments; critical analysis of financial services regulations and banking practices; a key-literature review on the subjects of business operating models, operational frameworks and operational excellence; and an overview of the DSRM-based (Design Science Research Methodology) programme of research cited by this paper.
Findings - The notion of a business operating model is not well developed in the literature, therefore an operating model ontology for banks is needed to answer the problem statement of this paper.
Research limitations/implications - Although the implications of this research paper can be translated to the financial services industry in general, the context presented here is from banking.
Originality/value - Objectives are presented for a design science research artifact, The Operating Model Ontology for Banks, based on an improved notion of banking operations derived from the SOM Functional Integration Framework.
Practical implications - The ultimate aim of this research programme is to develop an operating model ontology that can be used to describe the Operational Behaviour of banks, for making more comprehensive regulatory and business assessments of their performance against the multi-functional goals of operational excellence.
Paper Type - Research.
Keywords: Banking, SOM Functional Integration Framework, Credit Crunch, Operational Excellence, Financial Services Regulations, Business Models, Operating Models
Suggested Citation: Suggested Citation