What is the right Operating Model?

I am meeting a CIO of a big company this week. The company is making major acquisitions globally. Their goal is to leave each business operating independently with local autonomy to make decisions for growth. Initial information I received is that the CIO will leave the current IT systems alone leaving some room for future functional consolidation – HR, Procurement, Finance/Operations.

Which Operating model is this company going to adopt?

My research and analysis tells me that this company is going to pick “Coordination” Operating model. The product that the company produces is perishable that a common man in the world consumes. They have shared customers – but the packaging and distribution of the product may wary depending on the national factors – culture, currency etc.

Per Enterprise Architecture as a Strategy, the authors Jeanne Ross, Peter Weill, David Robertson –

“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. But while key business processes are integrated, business units have unique operations, often demanding unique capabilities. For companies with a Coordination model, low cost is usually not the primary driver in company-wide decisions. Autonomous business heads execute their processes in the most efficient manner possible, but corporate directives and negotiations focus on providing the best service to the customer. Strong central management defines the need for cooperation. Successful companies rely on incentive systems and management training to encourage company-wide thinking at the business unit level.”