Every linear bounded self-adjoint operator $T : {\scr H} \to {\scr H} $can be written in terms of its eigenvalues and their associated projectors (see spectral theorem): $$ T = \sum_{{\frak spec}(T) }\lambda \ P_\lambda$$
For finite-dimensional spaces, there's an equivalent matrix formulation:
Every hermitian matrix is similar to a diagonal one via unitary transformations.
In this context, we can also consider "functions of operators": $$f(T) = \sum_{{\frak spec}(T)} f(\lambda) P_\lambda$$
It's simply the function acting on each of its eigenvalues. But what about a "Taylor expansion"?
What does it mean $$f(T) = \sum _n \frac {f^{(n)} (0)}{n!} T^n?$$