Crafting a Target Operating Model (TOM) for Seamless Transformation

Learn how to create a Cloud Target Operating Model (TOM) that aligns cloud operations with business goals. Discover the key components like governance, security, and compliance to ensure a smooth and efficient cloud transformation.

Cloud technology has become a critical enabler of business transformation. Whether an organization is planning to migrate to the cloud or optimize its existing cloud operations, a well-defined Cloud Target Operating Model (TOM) is of paramount importance.

A Cloud TOM serves as a blueprint that outlines how an organization's cloud operations should be conducted to achieve its strategic objectives. It provides a clear vision of the future state of the organization's cloud operations, encompassing aspects such as governance, processes, technology, service management, and people.

By defining a Cloud TOM, organizations can ensure a smooth and successful cloud journey. It provides a roadmap for the transition, helps to align cloud operations with business objectives, and enables the organization to realize the full benefits of cloud technology, including improved efficiency, agility, scalability, and cost savings.

Challenges a Cloud TOM Can Address

• Organizations transitioning IT operations to the cloud but struggling to integrate new services with existing infrastructure.
• Business processes that are not designed to support a cloud-based operating model.
• Current operating models that are insufficiently scalable for growth.
• Lack of a strategy to address new skills and capabilities needed for cloud adoption within the current framework.

A well-designed Cloud TOM aligns cloud operations with an organization's strategic goals, ensuring that cloud initiatives support these objectives. In the following sections, we will delve deeper into the components of a Cloud TOM and discuss how to develop and implement an effective model for your organization.

Understanding Cloud TOM

Cloud TOM, or Target Operating Mode, describes the desired operational state of an organization influenced by cloud capabilities. It outlines how an organization should operate in a cloud environment to meet its business strategy and objectives. This includes changes to processes, technologies, skills, and organizational structures to leverage cloud capabilities effectively.

According to a recent Gartner study, global cloud spending is projected to reach $600 billion by 2023, reflecting a 22% increase from the previous year. Additionally, 94% of enterprises have reported security benefits after adopting cloud solutions, emphasizing the importance of proper governance and security measures.

Benefits of a Cloud TOM

• Strategic Alignment: Ensures the cloud strategy aligns with overall business goals.
• Operational Efficiency: Identifies necessary changes to operational processes to leverage cloud capabilities effectively.
• Risk Management: Helps manage security, compliance, and data management risks.
• Skills and Capabilities: Identifies required skills for cloud operations, guiding workforce development.
• Change Management: Provides a clear vision of the future state of operations, supporting change management initiatives.

Embracing a Cloud TOM enables an organization to remain agile and prepared for future technological demands, guiding its cloud journey while maximizing operational efficiency and minimizing risks.

Key Components of a Cloud TOM

A Cloud Target Operating Model serves as a blueprint for an organization’s cloud operations. Below are its key components:

Governance

Outlines the decision-making structures, roles, and responsibilities related to cloud operations. It includes the establishment of a governance board, defining cloud policies and procedures, and implementing a cloud management platform.

Operations

Covers day-to-day management of cloud resources, including provisioning, monitoring, and integrating cloud services with existing IT systems. Ensures reliability, performance, and availability of cloud services.

Security

Focuses on protecting cloud resources and data, ensuring confidentiality, integrity, and availability. Includes implementing security controls, managing incidents, and monitoring risks continuously.

Compliance

Ensures cloud operations comply with relevant laws, regulations, and standards, including data privacy and audit requirements. This component helps manage data sovereignty and meet audit expectations.

Technology and Data

Covers the technology needed to drive business objectives and support overall performance. It also addresses information security, data analytics, and decision-making processes.

People and Skills

Defines the competencies and skills required within the organization, including talent management and key performance indicators (KPIs).

These components are interconnected, and successful cloud operations rely on a holistic approach that addresses each aspect cohesively.

Crafting a Cloud TOM: A Framework

Organizations that have implemented a Cloud TOM have seen up to a 30% improvement in operational efficiency. Here’s a guide to developing a Cloud TOM:

1. Define the Vision

Start by defining a clear vision for your cloud strategy. This should align with your organization's business objectives and outline what you hope to achieve through cloud adoption.

2. Assess Current State

Conduct a thorough assessment of your current IT infrastructure and processes. Review documentation and perform a stakeholder analysis to understand gaps or areas for improvement.

3. Identify Requirements

Based on the vision and assessment, identify specific requirements, such as cloud services, security measures, and skillsets needed.

4. Design the TOM

Design your Cloud TOM, outlining key components such as cloud architecture, governance models, service management processes, and organizational structures.

5. Develop an Implementation Plan

Create a detailed plan for implementing the TOM, with clear timelines, tasks, and responsibilities.

6. Execute and Monitor

Begin executing the plan, regularly monitoring progress, and making adjustments as needed. Ensure continuous improvement and alignment with organizational goals.

Conclusion

A Cloud Target Operating Model is essential for any organization's cloud journey. It provides a clear roadmap for how cloud technologies will be used and managed to achieve business objectives. The process of creating a Cloud TOM involves understanding your current state, defining your desired future state, and developing a plan to bridge the gap.

Whether you're just starting or already on your cloud journey, developing a Cloud TOM will help you maximize the benefits of cloud technology and enable a successful cloud transformation.

FAQ

What is a Cloud Target Operating Model (TOM)?

A Cloud TOM is a blueprint that outlines how an organization should operate in a cloud environment to align with its strategic goals and maximize the benefits of cloud technology.

Why is a Cloud TOM important for organizations?

It ensures strategic alignment, operational efficiency, risk management, skills identification, and effective change management during cloud adoption.

What are the key components of a Cloud TOM?

The key components include governance, operations, security, compliance, technology, and people and skills management.

What challenges might organizations face when implementing a Cloud TOM?

Common challenges include resistance to change, technical issues, and alignment with best practices in cloud architecture and governance.

How often should a Cloud TOM be reviewed and refined?

A Cloud TOM should be regularly reviewed and refined to ensure it continues to meet evolving business objectives and needs.