Academy/Organisation and Operations
Business & Operating ModelStandard Methodology

Target Operating Model Design

AIA's approach to designing a target operating model through an AS-IS review and TO-BE development sequence, most commonly applied to IT/digital strategy and architecture engagements, culminating in a roadmap to the future state.

What it is

A staged AS-IS/TO-BE methodology: review current business principles, capabilities and architecture; define target architecture and digitalisation principles; and build a roadmap and business case to close the gap — most fully developed by AIA in the context of IT/digital strategy and architecture work.

Problem it solves

Prevents target-state design happening before the current state and required capabilities are properly understood, and keeps the roadmap tied to a business case and gap analysis.

When to use

  • A client needs a future-state operating model, particularly where technology/architecture is a major driver
  • A digital or IT strategy engagement needs a structured roadmap to the target state

Key questions

  • What are the current business principles and capabilities (AS-IS)?
  • What is the target architecture and set of digitalisation principles (TO-BE)?
  • What is the roadmap and business case to close the gap?

Inputs

  • Value chain and business process review
  • Business requirements review
  • Enterprise architecture review
  • ICT/AI governance review

Steps

  1. 1AS-IS reviewReview existing capabilities, architecture and business principles (value chain, business requirements, enterprise architecture, ICT governance).
  2. 2TO-BE developmentDefine digitalisation principles, enhance business processes, align architecture, and develop the enterprise/solution architecture roadmap.
  3. 3Change management & business caseDevelop the business case and change management plan to support the transition.
  4. 4Roadmap to future stateSequence the gap-closing initiatives into an implementation roadmap.

Outputs

  • Target operating model / architecture roadmap
  • Business case for the transition
  • Gap analysis

Source visuals

IT/Digital Strategy and Architecture: AS-IS review to TO-BE roadmap
IT/Digital Strategy and Architecture: AS-IS review to TO-BE roadmap
target operating modelTOMas-is to-beenterprise architectureroadmap

Related methodologies

Custodian: Corporate Support. Internal (staff access). Source: AIA_Methodologies_2024.pptx (slides 31, 32, 33, 38).