Operational Model
Establish a target operating model
An operating model is a framework for formulating an operations strategy. In this context, operations isn't only software development, but all the considerations for cloud technology operations, including procurement, risk controls, skill management, service design, and service management. The model contains explicit choices about the best deployment of an organization’s elements to achieve business goals. An operating model can be top-down and holistic, integrating aspects of people, process, and technology, or bottom-up, specific to a particular technical solution. In either case, a target operating model (TOM) can help you achieve common objectives in a flexible way.
For example, when you want to change your current situation through new ways of working, you need a TOM. A TOM contains a description of each IT function and the process, organization, tools, and governance capabilities that you need to support cloud adoption. A TOM isn't static; it evolves as difficulties are identified and remedied, the market shifts, and new capabilities are introduced. As an example, this diagram shows a reference TOM that is focused on strategic transformation with considerations such as partnerships and ecosystems as well as skills that are critical to achieve new ways of working.
The building blocks of a TOM
The operating model is a manifestation of the IT strategy and corporate strategy that is driven by enterprise objectives. The framework for an operating model isn't a new concept, but components have evolved. A modern TOM might consist of these building blocks:
If you're creating a TOM, you might wonder which building block is the most critical to establish a foundation for the TOM. For example, a new hybrid cloud solution might entail new participants, partnerships, skills, and processes around capabilities such as data and AI. In that case, your initial TOM might focus on the building blocks of organization, processes, and data strategy.
Factors such as the level of maturity, the scope to cover, and the level of sponsorship all influence the speed and impact of updating and implementing a cloud-focused TOM. This diagram shows various factors that can be assessed and prioritized to emphasize the most relevant components of a TOM for a specific scenario.
In another example, an organization seeks to set up a team that is focused on emerging innovation. In that case, the organization might use building blocks that are related to technology, metrics, and customer management. In either case, it's key to ensure a holistic selection of components so that it's not all technology- or process-centric.
The components that you include provide a framework to use as a communication vehicle for IT and business stakeholders. To entail those attributes, focus on the components that your organization most highly prioritizes by considering what is important to stakeholders, such as impacted users or accepted trends within an industry.
As an example, service providers are increasingly adopting edge compute models that introduce unique processes and operational capability requirements. As a starting point, include only the components that are needed. If a TOM is evolving, focus on the components that are affected by implementing future-state solutions. In either case, the key is to be holistic in selecting components. As with the IBM Cloud Adoption and Transformation Framework, give equal weight to people-, process-, and technology-related aspects so that all stakeholders, not only IT teams, can benefit.
After you identify those dimensions, your next steps might follow a standard consulting approach: engage, scope, assess, and define. As part of the process, you define a target state, create initiatives, and employ an actionable initiatives and a transformation roadmap.
These approaches are often effective:
For each of the dimensions, drive the activities with a people-process-technology perspective, with metrics that help you measure against value objectives and report back to the business to generate and maintain momentum.
Decide how implementation will occur, and consider what transformation paths or options are feasible. Reflect on the capability to deploy the plan on your own or by working with partners. It's also important to establish assessment capabilities to measure progress. To do so, you can use a maturity model.
Define a transformation roadmap. This roadmap can be viewed as the corporate-wide cloud journey, which is driven by a top-down approach.
Lessons learned
As more organizations establish TOMs for cloud adoption, you can benefit from the lessons that they learned.
Most organizations need both a top-down, or strategic, and bottom-up, or tactical, approach. Identifying common goals and becoming aligned are key to success. This approach might require extra sponsorship or investment. The result is an agile approach that helps you reach different parts of the business.
Technical teams might begin the process of establishing a new TOM with an exclusively IT perspective. Instead, engage and include a business perspective from the beginning of this process.
Common challenges include a lack of planning, coordinated activities, and effective communication to support cloud journeys. These challenges are especially prevalent with non-technical communities. Be careful so that these challenges don't hinder the effectiveness of your TOM.