At the heart of business longevity lies the target operating model. It sets out how your organisation should run to thrive, grow, and improve – think of it like a continuous recipe for success! Without a target operating model, there’s no clear framework for a business’s people and processes to follow. It’s more vulnerable to miscommunication and misaligned values – and ultimately, failure.
Data is core to modern, effective operating models that are helping leaders to increase efficiencies, optimise resources, and drive down costs – all while maximising profit. So, what do you need to do to incorporate data into your target operating model, and does it need one of its own?
Read on for what you need to know about target operating models, and why data is integral to their success.
What is a Target Operating Model?
A target operating model – or ‘TOM’ as we like to say – is the blueprint of how your organisation runs. It includes the overall capabilities of the business, from people and processes to assets and technology, and is used to make sure operations and processes are in line with the vision of the leadership team.
If you’re wanting to drive meaningful, long-lasting change, a target operating model is the place to start.
Data Target Operating Model Explained
As the name suggests, a data target operating model focuses on delivering everything data, from your overriding data strategy to ongoing data management . It’s just as aligned with your overall business TOM and vision, but the elements within are more targeted towards anything data.
What’s in a Data TOM?
Your data TOM involves the different systems and frameworks you have in place to aid data-driven decision-making. It should revolve around how data is:
- Managed
- Governed
- Leveraged
Why Data is Integral to Your Target Operating Model
So, with several target operating models in play within one organisation, how do you ensure they all work together to achieve shared goals?
Well, like many data management activities, it comes back to your people and your processes. Sharing what your data TOM is and how you’re hoping to work within it with other areas of the business is a good place to start!
Dive deeper into the importance of data to your business in our blog: Why is data important for business?
What Should a Data Target Operating Model Include?
Your data target operating model needs to include the different components it’s made up of, as well as explanations of what these involve. For instance:
- Robust governance frameworks
These should detail roles, responsibilities, and policies regarding secure data management and how issues are raised and resolved. Learn more about Data Governance.
- Technologies and tools
This section will typically include the technologies that can be scaled easily to future-proof longer-term growth or automate tasks to increase efficiency. Make sure you include all tools used for data integration, storage, and analysis, too, so the different data components are reflected in the wider business TOM.
Explore analytics in more detail: Data Analytics and Insight.
- Feedback loops
Explain how you’d like to share insight over data issues with other areas of the business to make for more effective functions.
- Culture
Embedding data as a core business asset requires the right skills and mindsets. Your data TOM is the perfect place to set out what these are and how leaders/managers can empower employees to confidently own and manage data.
Target Operating Model Case Study
One of the best examples of data’s importance to a target operating model is our work for the Information Commissioner’s Office (ICO). Data is at the core of this independent regulator’s work, which involves upholding the public’s information and privacy rights. Before working with Oakland, the ICO’s data maturity was assessed to be low. As such, it was a challenge for them to achieve one of their business goals: to set the tone for responsible and innovative data use in the public sector.
Partnering with our data strategy consultants, the ICO was able to develop a strategic vision for data, which aligned with the organisation’s overall objectives and priorities. We supported them to develop an implementation plan for their data TOM and wider data strategy, with both short- and long-term roadmaps to ensure the ICO understands its current data maturity – and agree on a viable business-wide vision.
For the full details of our data consultancy work with the ICO, please read: Setting standards for responsible data use.
Harness Data to Deliver Real Business Impact
You’ll know that data holds the key to unlocking more efficiencies and informed decision-making within your organisation. But there’s a seismic difference between how far you’ll get with average data and the opportunities you’ll discover with great data.
To create, justify, and implement a target operating model that’ll safeguard your business for years to come, you need data that you truly understand and that you can develop informed TOMs with.
Oakland is proud to have helped the likes of UK Power Networks, RAW Charging, Yorkshire Water, and others to make the most informed data strategies and management plans, which feed into wider business TOMs to ensure values and aims are aligned.
Please contact our friendly team to find out how we can support data transformation within your business.
We’ve also got plenty of resources for you to use to improve the integrity of your data TOM and overarching data strategy.
