What is Commercial Operating Model?

The arrangement of responsibilities, workflows, capabilities, resources and management mechanisms through which an organisation conducts commercial activity.

In commercial practice, commercial operating model should be understood in relation to the organisation's wider operating environment rather than as an isolated tool or departmental activity. The precise application depends on the business model, organisational complexity and the responsibilities assigned to different teams.

For example, an organisation reviewing commercial operating model should identify the responsible roles, the relevant processes and information, the decisions being made, and the evidence used to judge whether the arrangement works as intended.

Commercial Architecture examines strategy, people, process, technology, data and governance together. Commercial Operating Model should be considered in the context of those interdependencies and the revenue-system capabilities it influences. Governance of one capability alone does not establish that an organisation has a fully Governed Revenue System.

The term may also be used differently in other professional disciplines; context should be made explicit.