Business & Operating Model of a
Retail Branch
In a Simulated Environment
Prof. [Your Name]
1-Hour Session | April 2025
Agenda
• Introduction & Objectives
• Business Model vs Operating Model
• Business Model Canvas for Retail Branch
• Real-World Example: Amazon Go
• Operating Model Components
• Case Study: Zara's Agile Operations
• Simulated Environment Demo
• Key Metrics & Performance Indicators
Business Model vs Operating
Model
• Business Model:
– • Defines value proposition, target customers,
revenue streams.
• Operating Model:
– • Specifies processes, people, technology to
deliver the business model.
Business Model Canvas: Retail
Branch
• Customer Segments:
– – Local Shoppers
– – Commuters
– – Online Order Pick-up
• Value Propositions:
– – Convenience & Speed
– – Curated Product Mix
• Channels:
– – In-Store
Example: Amazon Go
• • Cashier-less checkout via Just Walk Out
technology
• • Sensors & computer vision for real-time
tracking
• • Value: Extreme convenience & reduced wait
times
Operating Model Components
• Processes:
– – Inventory Management
– – Store Operations
– – Checkout Flows
• People:
– – Store Associates
– – Inventory Specialists
– – Customer Service
• Technology:
Case Study: Zara's Agile Operations
• • Vertical integration for rapid design-to-shelf
turnaround
• • RFID-enabled inventory accuracy &
replenishment
• • Store staff empowered for real-time
merchandising updates
Simulated Environment Demo
• Using VR/AR & Digital Twins:
• • Training staff in virtual store setups
• • Testing layout changes without real-world
disruption
• • Analyzing customer flow & heatmaps
Key Metrics & KPIs
• • Sales per Square Foot
• • Inventory Turnover Ratio
• • Customer Dwell Time
• • Order Fulfillment Accuracy
Summary & Takeaways
• • Align business & operating models for
seamless delivery
• • Leverage technology for efficiency &
customer satisfaction
• • Use simulation for risk-free testing & training
Questions & Discussion
• Thank you! Let's discuss and explore further.