In which operating model do firms standardize business processes and share data across business units?

In the context of business operating models, unification refers to a strategy where firms standardize their business processes and ensure that data is shared across various business units. This model fosters consistency and efficiency by creating a cohesive framework where all units operate under the same guidelines and utilize the same data systems. This leads to improved collaboration, reduced redundancy, and a more streamlined approach to decision-making, as stakeholders can access unified data that reflects the entire organization.

Unification helps organizations capitalize on best practices across different units, as processes are aligned and standardized. This is particularly beneficial in large, complex organizations where different business units might otherwise operate independently, leading to inefficiencies and a lack of coordination.

The other models—diversification, coordination, and replication—do not emphasize the same level of standardization and data sharing across business units as unification does. Diversification typically involves expanding into new areas or markets without necessarily linking processes across existing units. Coordination focuses more on aligning activities among units without fully standardizing them, while replication involves duplicating successful processes from one unit to another without establishing a unified standard approach across the organization.