Target Operating Model Design

As Target Operating Model creation and consulting experts, Appnovation offers a systematic, yet tailored approach to support your organization to achieve its strategic operating targets.

We continue to help clients on a variety of initiatives, from transforming their current operating models (COMs) to designing completely new Target Operating Models, in response to various business scenarios, confirming that the vital components of the business are in sync with the strategy.

Appnovation uses our proven framework and consultative expertise for successfully designing and developing TOMs that we adapt to meet your specific requirements. Our approach employs our industry experience, best practices and design principles to back the improving and enhancing of operating models.

We drive an iterative and collaborative methodology with our clients that include personnel interviews, working sessions with subject matter experts and, “blue sky” and “deep dive” workshops to uncover and explore ideas, address problems and blockers, adjust controls, redefine functions and roles and plan for impending changes.

Factors that can affect the process and the delivery of the TOM include the scope of the organization included, its complexity, stakeholder and key personnel involvement and availability.

Features

• Current state review and analysis of existing/current organizational operating model(s) adequately capturing dependencies, processes, people, technologies etc.
• Evaluation of the strategy and principles that will serve as guidelines for direction of the project’s scope
• Design and development of the TOM that includes methodology, explanations, definitions functions, process architecture, structure, high level job roles, etc. and accounts for varying scenarios and options implications for things like IT, organizational, governance choices by providing reliable recommendations and financial benefits
• Formation of a issue, risk and opportunity matrix along with a gap analysis between the current state and the TOM
• Identify and development of a cost breakdown, communication plan, transition road map and resourcing requirements to initiate and roll out the change program

High Level Steps

Our teams take a four-step approach:

Assess & Capture As-Is

Articulate, define and refine the strategy and the vision, diagnose the current operating model and its effectiveness while outlining the gaps in the various capabilities to reach the TOM.

Design & Justify

First create the designing principles about how the operating model will be developed and set the KPIs for success; next, define how the organization will operate and identify the capabilities it will require that are in line with the strategic direction along the following aspects which include customers, services and/or products, channels, processes, IT platforms, systems and applications, organizational structure, employees and locations.

Build & Test

Create and refine business case to highlight and quantify changes in terms of costs, benefits (financial and otherwise) potential risks, roadmap for implementation, employee headcount requirements, organizational makeup and structure, job roles and skills.

Roll Out & Implement

The methodology should include a transformative roadmap defining timelines, roles, actions, requirements and resources and communication plan to implement TOM, develop and monitor company dashboard of KPIs to help stakeholders and management with refining the new operational environment.

Target Operating Model Business Benefits

Our Target Operating Models provide a holistic transformational approach that leads to an alignment and optimal configuration of technology and business vision and strategy tailored in all aspects to meet future requirements and best fit, accounting for market changes and the organization's strategic outlook.

The benefits of a company having a Target Operating Model include:

• Issues and opportunities identification for improvement and optimization
• Stakeholder approved future vision of the optimal organization design aligned to business objectives and company strategy
• Clear lines can be drawn between roles, functions, processes, technologies, etc.
• Definitions of the roles, skill sets and staffing required to achieve.
• Effective planning, implementation roadmap, dashboard of KPIs, knowledge transfer and change management to deliver expected outcomes and refine the model.
• Financial implications for each option / scenario to better enable management of direction and decisions, with specificity to your unique organization.
• Assurance that processes are optimal, designed and tested to deliver objectives while also aligning to strategic and operational objectives.