Explanation: Target Operating Model (TOM)

A Target Operating Model defines the desired future state of an organization’s operations. It outlines how a company should be structured and function to achieve its strategic objectives. A TOM typically includes key elements such as processes, organizational structure, roles and responsibilities, governance frameworks, technology use, and cultural aspects. It is often developed during major transformation or digitalization initiatives and serves as a guiding framework for implementing operational change. The TOM ensures alignment between strategy and day-to-day operations across the entire organization.

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