Target Operating Model

A Target Operating Model (TOM) should not be limited to cloud-native environments. It should enable the entire digital innovation capability of the organization — cloud, data, AI, platform engineering, DevOps, and business agility.

“In my view, the target operating model is not limited to enabling cloud adoption. It defines how the organization operates to deliver digital innovation at scale. Cloud is one of the enabling platforms, but the operating model should also support platform engineering, data-driven decision making, AI adoption, DevSecOps practices, and faster product delivery.”

What a Real Enterprise Target Operating Model Includes

A Target Operating Model typically has five dimensions.

1️⃣ Business & Product Operating Model

This defines how business and technology collaborate.

Traditional modelBusiness → requirements → IT builds

Modern model Product-oriented teams

Example:

• Digital banking team

• Payments platform team

• Customer onboarding platform team

Each team owns product lifecycle end-to-end.

“We move from project-based delivery to a product-centric model where cross-functional teams own business capabilities end-to-end.”

2️⃣ Engineering & Delivery Model

Defines how software is built and delivered.

Key capabilities:

• Agile delivery

• DevOps pipelines

• Platform engineering

• Microservices architecture

Goal:

faster time-to-market

Example outcome:

Release cycle improves from quarterly → weekly.

“The engineering model focuses on enabling autonomous teams supported by strong platform engineering and DevSecOps capabilities.”

3️⃣ Technology Platform Model

This defines foundational technology platforms.

Examples:

• Cloud platforms

• API platforms

• Data platforms

• AI/ML platforms

• Integration platforms

These platforms allow innovation at scale.

Example:

Instead of every team building authentication →use enterprise identity platform.

“We build shared technology platforms such as cloud infrastructure, API platforms, data platforms, and AI capabilities to accelerate innovation across teams.”

4️⃣ Governance & Risk Model

Especially critical in BFSI.

Includes:

• architecture governance

• security controls

• regulatory compliance

• risk management

Example:

• Zero trust architecture

• Data privacy controls

• Audit compliance

“We establish governance guardrails to ensure security, compliance, and architectural consistency without slowing down innovation.”

5️⃣ Talent & Capability Model

Transformation fails without people capability.

Includes:

• skill transformation

• engineering culture

• leadership development

Example:

Upskilling programs for:

• cloud engineering

• AI engineering

• SRE practices

“A successful operating model also requires investing in talent development to build future-ready engineering capabilities.”

Target Operating Model =

Business Operating Model

• Engineering Model

• Technology Platforms

• Governance & Risk

• Talent & Capability

This is how enterprise transformation becomes sustainable.

“In my view, the target operating model is the foundation for sustainable digital transformation. It aligns business capabilities, engineering practices, technology platforms, governance models, and talent development so that innovation can happen at scale.”

How Do You Ensure Innovation Does Not Break Governance and Regulatory Compliance in BFSI?

In BFSI environments, innovation must be balanced with strong governance and regulatory compliance. My approach is to embed governance and security controls directly into the engineering and architecture processes so that teams can innovate safely without violating compliance requirements.

1️⃣ Governance and Compliance by Design

First, we establish clear architecture principles and guardrails aligned with regulatory requirements such as data protection, security standards, and auditability.

These guardrails ensure that innovation happens within defined architectural boundaries.

2️⃣ Platform-Based Enablement

Instead of letting every team implement controls individually, we provide standardized platform capabilities, such as:

• secure API gateways

• identity and access management

• encryption frameworks

• logging and audit mechanisms.

This allows teams to innovate while automatically inheriting compliance-ready capabilities.

3️⃣ DevSecOps and Automated Controls

Security and compliance checks are embedded directly into the CI/CD pipeline.

For example:

• automated security scans

• compliance policy checks

• infrastructure configuration validation.

This ensures governance is automated rather than manual.

4️⃣ Collaboration with Risk and Compliance Teams

Innovation programs must work closely with risk, security, and regulatory teams to ensure new solutions meet compliance requirements.

Early involvement of these stakeholders prevents delays and rework later.

5️⃣ Continuous Monitoring and Auditability

Finally, strong monitoring and logging capabilities ensure that:

• all transactions are traceable

• security events are detected early

• regulatory audits can be supported effectively.

The goal is to create a framework where innovation happens within well-defined guardrails, ensuring that speed and compliance coexist rather than conflict.