AI Automation & Sourcing Decisions – Designing the Target Operating Model

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What work will remain — and who should deliver it in the future?

With the rise of artificial intelligence and automation, the role of IT is changing fundamentally.

Many operational activities will increasingly be automated, while other responsibilities become more strategic and complex.

For CEOs and CIOs this raises a critical question:

Which capabilities should remain inside the company — and which can be automated or delivered by external partners?

In other words:

What should the future operating model of the organization look like?

A robust IT strategy today must therefore address three topics together:

  • Technology and automation

  • Organization and capabilities

  • Sourcing and partner strategy

how to design value driving digital operatingmodel

Designing a Value-Driven Digital Operating Model

In practice, internal activities and services increasingly fall into four categories.

Each category implies a different organizational model: Internal capabilities, automation, shared services, or external sourcing – a well balanced sourcing strategy.

Area

Content

Organization

Automation / AI

Data analytics, document processing, testing, standardized processes

Software / platforms

Strategic capabilities

Architecture, governance, transformation, business process design

Internal

Shared services

Standardized IT and business processes

Global or regional service centers

Outsourcing / partners

IT operations, development, support, back-office functions

Nearshore / offshore

The real challenge is defining these boundaries clearly.

  • Overly complex and undocumented internal structures lead to unnecessary cost.

  • Excessive outsourcing creates dependency and loss of expertise.

A balanced operating model requires deliberate strategic decisions.

My Approach

I combine organizational design, sourcing strategy and IT strategy into one integrated decision process.

Together with executive leadership, business units and IT we clarify:

  • which activities can realistically be automated

  • which capabilities must remain strategic internal competencies

  • which processes are suitable for shared service structures

  • which services can be delivered efficiently by external partners

The result is a realistic target model for the organization, technology landscape and partner ecosystem.

The Outcome

The outcome is not an abstract strategy but a clear decision framework, defining:

  • which capabilities the company must build and retain internally

  • which activities should be automated

  • which services should be centralized

  • which tasks external partners should deliver

This leads to a Target Operating Model and organizational architecture that

  • leverages automation and AI

  • preserves strategic competencies

  • and integrates external partners where they create real value.