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 data.
“A data target operating model is how an organisation’s data capabilities are structured, managed and sustained to support delivery of the data strategy, which should align with delivering your business outcomes and needs.”
Craig Lambert, Senior Consultant at Oakland
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 TOM involves the different systems and frameworks you have in place to aid data-driven decision-making. When developing a data operating model, we structure it using the following framework:
- Strategy and purpose
Sets the organisational vision and mission.
- Leadership and talent
Translates the strategy and makes it meaningful to different business units, as well as demonstrating the business’s ways of working.
- Organisational structure, roles and responsibilities
The size and structure of the team, and the different roles and associated responsibilities of each colleague. The policies regarding secure data management and how issues are raised and resolved are also included in this area.
- Culture and ways of working
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.
- Technology, tools, and data
Typically includes the technologies that can be scaled easily to future-proof longer-term growth or automate tasks to increase efficiency. It should include all tools used for data integration, storage, and analysis, too, so the different data components are reflected in the wider business TOM.
- Processes and feedback loops
To deliver the data operating model effectively, well-defined processes that connect technology solutions are key. Here is where you can explain how insight over data issues should be shared with other areas of the business to make for more effective functions.
Target Operating Model Case Study
One of the best examples of the importance of a target operating model is our work for a major UK media organisation. While creating the customer data platform that delivered growth and competitive advantage, we also developed a TOM. The organisation’s headcount and skillset was growing fast, so an operating model became critical to success.
Overall, the TOM we developed has delivered:
- Increased control and governance across the delivery cycle
- More streamlined and insightful execution
- Better reporting, KPIs and performance tracking
- Higher clarity over the functional split and handoffs between teams
- Identification of areas needing investigation
For the full details of our work with this media organisation, please read: Creating a customer data platform for long-term innovation.
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 deliver sustainable, long lasting value from your data and ensure desired returns on investment in your data capabilities and products, you’ll need a target operating model that’ll safeguard your business for years to come.
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.
