An IT operating model (ITOM) defines how an IT organization delivers on its value proposition — that is, how IT contributes to achieving the enterprise’s strategic objectives. More simply, it shows “how things get done” and how value is created. CIOs must methodically design, and explicitly document and communicate the target operating model to ensure IT delivers the expected value.
There are nine core components to an IT operating model. These must work in synchronicity to achieve strategic outcomes and deliver on their value propositions. These components collectively make a system and have interdependencies. If the CIO adjusts one component, there will likely be a ripple effect across one or more components.
In practice, IT organizations focus their ITOM on one of three potential outcomes, depending on the business context, model, strategy, and the role of IT within the enterprise or business unit where it operates. The three potential outcomes are:
Enable IT efficiency.
Enhance the business performance.
Transform the business by creating enterprisewide competitive advantage or growth.
All three operating models can exist in the same IT organization or within multiple IT organizations across the enterprise. For example, an IT organization within a business unit or agency may have a transformation objective, while a global or central IT organization within the same enterprise may focus on enhancing overall business performance.