Target operating model (TOM) is a blueprint of a firm's business vision that aligns operating capacities and strategic objectives and provides an overview of the core business capabilities, internal factors, and external drivers, strategic and operational levers, organizational and functional structure, technology, and
What is a target operating model KPMG?
KPMG's Target Operating Model (TOM) consists of six layers, Process, People, Service Delivery Model, Technology, Performance Insights and Governance. Understanding how all six components of your Target Operating Model layers relate to each other is key to creating an integrated and highly functional solution.
What are the benefits of a target operating model?
Shorter time-to-market cycles due to greater agility in launching new businesses and trading new products. Better ability to ramp up volume quickly at minimum marginal cost. Increased client satisfaction due to a more transparent and compliant operating model.
What is a target operating model example?
A target operating model can be a one-page document the operating model Canvas is an example. It can also be 10 pages or 100 pages. If the document is more than 100 pages it becomes a manual rather than a model. Target operating models provide the vision for organisations undergoing change.
What should a target operating model contain?
To overcome this weakness, the KPMG Target Operating Model includes not three, but six 'layers' - Process, People, Service Delivery Model, Technology, Performance Insights and Governance.
What is included in an operating model?
All elements of the operating model—structure, accountabilities, governance, essential behaviors as well as the way people, processes and technology get integrated to deliver key capabilities—must be explicitly designed to support the strategy.Apr 8, 2015
How do you structure an operating model?
When you build out your operating model, you focus on three key elements: process, people, and technology. There are two approaches you can take: role-based or process-based. When you take the role approach, you design your operating model based on hierarchy and the roles within your company.Oct 5, 2021
How do you define an operating model?
An operating model is the blueprint for how value will be created and delivered to target customers. An operating model brings the business model to life; it executes the business model.
What are the five core operating model functions?
While they can be grouped in a number of ways, we consider five core operating model functions: governance, risk and control; financial management; legal and physical structure; people and reward and delivery (operations and technology).