Overview of an ADM operating model
Transitioning from typical IT operating model concepts to the specific context of ADM requires understanding how these principles apply to software development and maintenance processes. The ADM operating model provides a comprehensive framework to manage the entire application lifecycle from planning to development to maintenance. It helps achieve successful alignment between business goals and IT execution.
Creating an ADM operating model is typically a shared responsibility between the customer (business and in-house IT) and/or partners (application managed services (AMS) delivered by consulting and technology partners). This collaborative approach makes use of diverse expertise and aligns with the organization's specific needs and technological landscape.
As shown in the following diagram, an ADM model consists of interconnected layers that play critical roles:
Business layer – This top layer aligns ADM activities with the organization's strategic goals. Here, leaders define business strategy, shape enterprise architecture, and establish governance mechanisms. As generative AI integration becomes more prevalent, this layer becomes increasingly dynamic. It facilitates rapid and continuous alignment between business objectives and development activities.
Service integration layer – This operational nexus bridges the gap between business needs and technical implementation. As organizations introduce generative AI, this layer orchestrates complex interactions between human teams and AI systems to deliver seamless services.
Organization structure layer – This layer focuses on people, process, and technology, and it experiences significant changes during AI integration. Roles will evolve, teams will reimagine processes, and the technology stack will expand to include AI tools. This layer drives the practical implementation of an organization's generative AI transformation.
Organization capability layer – This foundational layer involves the strategic distribution of resources globally and the cultivation of essential skills and expertise needed for AI-augmented ADM. As AI integration progresses, this layer plays a crucial role in developing new competencies, establishing Centers of Excellence (COE), and fostering a culture of continuous learning.
As organizations prepare to integrate generative AI into their ADM practices, they can reshape each layer of this model as necessary. Organizations can reimagine SDLC processes, redefine roles, and recalibrate technology stacks to benefit fully from generative AI.
The true power of an ADM operating model lies in its ability to transform and manage change. This transformation requires close collaboration among all stakeholders to help ensure a cohesive and effective implementation of AI-augmented ADM practices.
For more details about each layer, see the following sections:
Business layer elements in an ADM operating model
The customer is responsible for activities related to the following elements:
Business strategy
Improve the customer experience and drive key business outcomes
Modernize core systems for high business impact
Enhance agility and innovation capabilities
Business line and support functions (Geographic areas and country)
LOBs
Marketing
Human resources
Procurement
Legal
Information technology (IT)
Dashboards, KPIs, and reporting
Service performance reporting
Service level agreement (SLA) and operating level agreement (OLA) monitoring and reporting
Business performance reporting
Governance, risk, and compliance
Steering committee and quarterly review
Risk assessment and management
Audits, compliance, and regulatory reporting
Enterprise and IT architecture
Business-aligned IT strategy
Architecture and design principles
Technology standards and policies
Budgeting and forecasting
Budget planning and control
Financial performance management
Demand forecasting and planning
Business value
Improve resiliency
Improve productivity
Improve business agility
New feature release
Service integration layer elements in an ADM operating model
This layer includes the following key areas of service management (responsibility of the consulting and technology partners) and service governance (responsibility of the customer):
Service management encompasses delivery of IT services including service desk, incident and problem management, change management, and service level management. AI-powered automation and intelligent support capabilities enhance service quality and efficiency.
Service governance focuses on oversight and control mechanisms including service validation, availability management, capacity planning, and configuration management. With effective service governance, services align with business objectives while maintaining compliance and performance standards.
Organization structure layer elements in an ADM operating model
The organization layer focuses on people, process, and technology.
Partners are responsible for activities related to people elements. In some cases, customers have a co-sourced engagement model resulting in shared responsibility for the following:
Organization structure and people roles
Product management – Project owner and business analyst
Project management – Project manager, Scrum Master, and Agile Coach
Architecture and design – Solution architect, technical lead, and user experience (UX) designer
Development – Software developer and user interface (UI) designer
Quality assurance – Testing lead, quality assurance (QA) tester, and performance engineer
Operations – DevOps engineer and release manager
Support and maintenance – Support engineer and technical writer
Subject matter experts (SME) – Security subject matter experts (SMEs), integration SME, and domain-specific SMEs
Partners are responsible for activities related to the following process elements:
Application functional management services
Business process management
Information and data management
Functional management
Application development services
Project and requirement management
Architecture
Design and development
Testing and quality assurance (QA)
Application maintenance services (Operations)
Services support management (ITSM)
Service request management
Updates and patch management
Service improvements
Application technical management services
Application basics support (Level 1)
Middleware management
Database management
Service improvements
Platform management services
Managed landing zone
Managed operating system (OS)
Database
Observability
Security
Network
Backup
Integration
Cloud financial
Other services
Partners are responsible for activities related to implementation and management of the following technology elements:
Technology and tools
Includes cloud, virtualization, containers, operating systems, databases, and other management tools
Developer tools and integrated development environments (IDEs)
Continuous integration and continuous development (CI/CD) tools
Bug fix and IT service management (ITSM) tools
Technology and consulting partnerships
Hyperscaler (AWS and others)
Technology ISVs
IT/Service desk supplier
Infrastructure outsourcing (Network, data center, security, and workplace services)
Organization capability layer elements in an ADM operating model
Generally, customers hold accountability for making the key decisions about the following activities:
Program and change management capabilities
Portfolio management
Feature and backlog management
Organization change management
Collaboration and communication capabilities
Productivity tools
Collaboration tools
Communication tools
Knowledge base management
Market research
Customer feedback and issues resolutions
Business and domain knowledge
Onshore locations, such as corporate office, regional office, or remote sites
Captive centers
One or more consulting partners are responsible for implementing and managing activities related to the following elements:
Nearshore delivery locations
Offshore delivery locations
Talent acquisition, training and certification, and resource management
Centers of Excellence
Innovation
Technology evaluation and proof of concept (POC)
POVs, best practices, standards, and policies
