IT Strategy and Planning Step 9: Define the future IT Operating Model

🎯 Objective

To define a future-oriented IT Operating Model that aligns with business strategy, enables innovation, and ensures scalable, secure, and value-driven technology delivery. The operating model should clarify how IT will operate across people, processes, technology, governance, and partnerships to support long-term business transformation.

💡 Why It Matters

An IT strategy without an operating model is just intent without execution. The IT Operating Model turns high-level IT strategy into a functional, scalable system of delivery and accountability. A future-state model ensures:

Alignment with evolving business models and digital priorities
Faster, more predictable delivery of technology capabilities
Increased agility to adapt to new tools, trends, and threats
A clear governance framework that ensures control without stifling innovation
The ability to attract, develop, and retain technology talent
Consistent delivery across geographies, channels, and teams

For a multinational snack retailer, this is critical to support eCommerce, AI-enabled supply chains, omnichannel marketing, and global expansion with localized execution.

🛠️ How to Define the Future IT Operating Model

1. Clarify Strategic Anchors

Start by identifying key strategic themes that should shape your model:

Business digitization goals (e.g., direct-to-consumer, smart supply chain)
Speed vs. control trade-offs (e.g., innovation PODs vs. compliance-heavy functions)
Global vs. local delivery needs
Core vs. differentiating tech (what to standardize vs. innovate)

2. Design Core Components of the Operating Model

a. Value Streams & Capabilities

Map out the key value streams (e.g., “Plan-to-Produce”, “Customer-to-Cash”) and required IT capabilities (e.g., data platform, CX tech, integration layers) to deliver them.

b. Technology Architecture

Outline the future technology stack — including cloud platforms, integration frameworks, data architecture, cybersecurity tooling, and automation enablers.

c. Processes & Ways of Working

Define delivery methodologies (Agile at scale, DevSecOps, ITIL v4) and how they are adopted across teams. Specify workflows for release management, incident response, and continuous improvement.

d. People & Skills Model

Define future roles, career paths, skill clusters, and sourcing models. Balance in-house innovation teams with outsourced commodity delivery.

e. Organizational Structure

Design your structure based on product lines, business units, or regional operations. Determine the placement of Centers of Excellence, Platform Teams, and Federated Business IT groups.

f. Governance & Funding Model

Create governance structures (e.g., architecture boards, cybersecurity councils, funding committees) and specify decision rights across IT, business, and finance. Choose CapEx vs. OpEx approaches aligned to agile and product-centric funding.

g. Sourcing & Partner Ecosystem

Segment your partner ecosystem by strategic (e.g., cloud hyperscalers), tactical (e.g., managed services), and niche innovation partners (e.g., AI startups). Define vendor evaluation, contracting, and performance review frameworks.

🛒 Example: Global Snack Retail Chain

To support its transition from a traditional wholesaler to a digitally enabled consumer brand, the retailer’s future-state IT operating model includes:

Value Streams: Digitally enabled merchandising, smart warehouse-to-shelf logistics, D2C eCommerce
Tech Stack: Azure + Snowflake for cloud data platform; SAP S/4HANA for ERP; microservices-based order management system
Ways of Working: Agile product teams embedded in marketing, logistics, and finance; DevSecOps toolchain (GitHub, Jenkins, Terraform, ServiceNow)
Org Structure: Global product teams supported by regional delivery hubs (India, Poland); Centers of Excellence for data and AI
People Strategy: Upskilling retail IT staff into cloud, data, and automation roles; critical talent hiring in cybersecurity and AI
Governance: Global Technology Council for strategy alignment; Security & Compliance Committee; quarterly Architecture Review Board
Partners: Strategic alliances with Microsoft, Infosys, and a retail AI startup for personalization engine