Everything you need to know to make your TBM approach a success
Technology Business Management provides a controlled and consistent method to translate technology investments to business value. By connecting your technology resources and investments to the services they deliver you will determine the true business value and impact.
What is TBM?
Technology Businsess Management (TBM) groups the costs of IT services into “IT Towers” to help connect specific costs to the services they provide. TBM also aligns with a Financial view by mapping traditionally known General Ledger items into cost pools.
By mapping costs this way, everything becomes transparent:
• IT know how much it costs to provide a technical or business service • Business leaders understand how much value is being delivered IT investments
And now, you can spend most of your time optimizing IT investments and showing business value.
What are my most expensive services/vendors? Where can I save money? What is best: buy or make to realise a specific IT service? How much budget and resources will a specific project likely consume?
Full transparency for IT costs
How do we plan our service delivery requirements effectively and ensure efficient delivery? What is the calculated price for a service? What is IT’s run vs. grow cost ratio?
Influencing efficient IT consumption
How can I, as Business Unit Head, impact my IT spend? Am I overspending on IT services? What options do we have for consolidation and optimisation?
Demonstrating Compliance
What service price can I charge to be transfer pricing compliant? How do we provide supporting evidence for financial compliance? How do we incentivise compliant behaviour, e.g., reducing Shadow IT?
Where are you on your TBM journey?
It doesn’t matter if you are at the start of your TBM journey or if you’ve been doing this for a while, the good news is that it is on your radar!
Gartner says that by the end of 2024:
70% of CIOs will have a dedicated IT Financial Management system or tool to clarify and analyse total IT spend.
Check out the resources below to help you harness the true power of TBM.
.png?width=76&height=76&name=download%20serviceware(3).png)
-1.png?width=600&name=unnamed%20(10)-1.png)
