Target Operating Model
The Target Operating Model (TOM) represents the desired state of a company’s organizational structure and processes from a holistic perspective. Traditionally, this includes the dimensions of organization or people, processes, and IT, which are aligned with each other. In the context of Big Data and Artificial Intelligence (AI), a fourth dimension must be considered: data.
The goal of the Target Operating Model is to align and build these dimensions coherently to leverage the potential of digitalization initiatives and, in doing so, achieve the long-term strategic business goals. The underlying concept is that IT systems can only realize their full business value when business processes are harmonized, aligned within the organization, and people are convinced.
Success Factors in the Design and
Implementation of the Target Operating Model
The focus is on achieving optimized end-to-end processes, not local improvements. Especially with value-generating core processes, an overarching view helps overcome local silos and conflicts of interest.
Even in the age of self-learning AI models, business software like SAP relies on structured and complete (master) data in sufficient quality to fully leverage its potential. This needs to be considered despite the enthusiasm for new technologies.
Another success factor lies in not just creating documents but operationalizing the TOM by actually standardizing and harmonizing processes, introducing IT systems based on TOM guidelines, and ensuring people are not only involved but convinced throughout the process.
With Experience and Methodology for an Efficient Organizational Structure
With our roots in IT consulting and our clear focus on business processes, combined with our years of project and industry experience, we ensure that the design of the Target Operating Model provides a comprehensive and, above all, actionable concept for the desired state of your business operations. Our Business Process Master List (BPML), which we adapt together with you for your company, serves as an accelerator to quickly lay the foundation for business processes within the TOM.
Company-wide Alignment for Maximum Impact
A key benefit of TOM is aligning projects and initiatives from various disciplines to a common vision and goal. In terms of SAP projects, for example, this means understanding the implementation of SAP S/4HANA not as an IT project but as a cross-functional business project and structuring the organization accordingly.
Do you recognize the need to develop a comprehensive concept for your business processes and put it into practice? Whether you’re on the verge of an SAP S/4HANA transformation and want to set the right course or have already undergone your SAP S/4HANA transformation without achieving the expected business impact: contact us, and let’s see if a holistic view of the dimensions of organization, process, IT, and data can help create the foundation for future business value.
Andreas Lämmle Partner