Bringing the Benefits of TBM to Your Organization

Bringing the Benefits ofTechnology Business Management to Your Organization

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The content in this deck is designed to give you a few slides to explain the value of TBM to your internal stakeholders and business partners. The content comes from the leadership and best practices of the TBM Council and is meant to be an overview. To find out more or become a member of the TBM Council, please go to www.tbmcouncil.org.

Included slides:

Technology Business Management discipline defined

How IT leaders are benefiting from TBM

Demonstrating the value of TBM in your organization

Get started with the four essential tools for TBM

We know you and your business are busy. If you have:

5 minutes – Go to slides 3, 4, & 6

15 minutes – Go to slides 3-7

30 minutes – Go to slides 3-12

How to use this deck

http://www.tbmcouncil.org/


Unlocking the Business Value of IT Do your business partners consume IT like it’s free? Are your business partners seeing the value in IT spend? Does the business think IT is too expensive?

Challenge 1:Unclear Value

Challenge 2:Uncontrolled Costs

Do run costs crowd out innovation? Can your IT justify investments? Is your tech debt quickly accumulating?

Challenge 3:Disconnected Planning

Can you defend your IT budgets? Do you have long budget & forecast cycles? Do you lack accuracy & accountability?

Challenge 4:Lack of Agility

Does the business have a variety of cost & quality choices? Does the business make IT decisions without you? Are your service owners partners with your business?


Reveals true costs and consumption of services, projects, infrastructure, apps and more

Measures TCO, enabling tackling of technical debt and other often-hidden costs

Accelerates business-aligned decisions with clear, trusted facts

Empowers productive conversations using a common language between IT, Finance, and Business Units

Technology Business Management (TBM) is a value management framework for decision making by CIOs, CTOs, CFOs and their teams.

“The advent of digital, the

Internet of Things and

mainstream cloud are bringing

new innovative capabilities to

the forefront. TBM brings the

business translation to these

technological advances so you

and your people can quickly

decide on tradeoffs and new

investments to improve

competitiveness, customer

engagement and the bottom

line.”

Mike BradyGlobal CTO, AIGTBM is developed and promoted by the TBM Council

What is TBM?


Leaders Benefit from TBM

CEOs

See IT spend in context of business value through efficient services and innovation portfolio

IT Leaders

Change the conversation from cost (“IT is too

expensive”) to value with fact-based decisions

CFOs

Partner with IT to govern investments in run- and

change-the-business initiatives

Business Unit Execs

Gain clear insight into the IT services they consume and the

projects they drive


More than 40% of Fortune 100 use TBM


10 Core Tenets that Drive TBMToday's technology executives have a big job to do. Here’s how innovative leaders are driving business

value with Technology Business Management.

1 POSITION FOR VALUE

3 CREATE TRANSPARENCY

4 DELIVER VALUE FOR MONEY

7 COST PERFORMANCE

8 BUSINESS-ALIGNED PORTFOLIO

5 SHAPE BUSINESS DEMAND

6 PLAN AND GOVERN

9 INVESTMENT IN INNOVATION

10 ENTERPRISE AGILITY

Run-the-Business Spend Grow-the-Business Spend

Foster a Business Culture

Vendor Invoices

Enable the Right Value Conversations

Develop Sound Fiscal Disciplines

2 CONTINUOUSLY IMPROVE


Foster a Business Culture

POSITION FOR VALUEDefine what you deliver in terms of business

capabilities that are understood and valued by your

business unit partners, so you can work together to

improve business outcomes.

1 CONTINUOUSLY IMPROVEExecute a strategic roadmap for TBM maturity by

integrating TBM into your day-to-day processes and

thinking, so TBM empowers fact-based value

conversations with your peers.

2


Develop Sound Fiscal Policies

CREATE TRANSPARENCYTranslate your spending, consumption and capacity

into meaningful perspectives for technology decision

makers.

3 SHAPE BUSINESS DEMANDCommunicate costs and consumption to business

units to drive informed trade-off decisions and better

consumption behavior.

5

DELIVER VALUE FOR MONEYMaximize value and demonstrate industry-

comparable cost-effectiveness for services and

innovation you provide.

4 PLAN & GOVERNCollaborate to align your annual budget and resource

plans to strategic business priorities and manage to

the plan.

6


Enable the Right Value Conversations

COST FOR PERFORMANCEDeliver technology, services and projects efficiently

to the business.

7 INVESTMENT IN INNOVATIONAllocate more resources to new and enhanced

services and to business innovation.

9

BUSINESS-ALIGNED PORTFOLIOOptimize portfolios to deliver the most value for the

level of spending.

8 ENTERPRISE AGILITYHelp the business respond quickly to market

opportunities or threats.

10

Run-the-Business Spend Grow-the-Business Spend


Top 10 Metrics to Elevate Your Monthly Business Review Can you answer the following

today? The TBM Council

recommends these KPIs to run your

business, measure, improve, and

communicate value on a

consistent basis.

FINANCIAL FUNDAMENTALS

IT Spend vs Plan (OpEx & CapEx variance)

Application and Service Total Cost

Infrastructure Unit Costs vs Target / Benchmarks

DELIVERY

Percent of projects on time, on budget, on spec

Percent of business-facing services meeting SLAs

INNOVATION & AGILITY

Percent of IT investment on run, grow, transform the business

Percent of project spend on customer-facing initiatives

BUSINESS VALUE

IT spend by business unit

Customer satisfaction scores for business-facing services

Percent of IT investment by business initiative


Four Steps to Get Started

1 2Read the book as a team to get on the same page.

Standardize terminology and drive consistency with the TBM taxonomy.

Join the TBM Council to network and learn from like-minded peers.3 Automate TBM with Apptio to

accelerate your journey.4

Four Value

conversations

CIOs should have

with their

businesses.

Come to the

2017 TBM Conference

in Las Vegas,

November 7-9.

SaaS software that

helps IT leaders make

informed decisions

about technology

investments.

Get the detailed poster

from Apptio

at: apptio.com/atum

Get Free posters from Apptio to spread the word.

http://apptio.com/atum


Bu

siness V

iewFin

ance V

iewIT V

iew

GETTING EVERYONE ON THE SAME PAGE

Industry standard developed by TBM Council

Meaningful terminology and categories for IT, finance, and line-of-business leaders

Enables benchmarking against peers using consistent (“apples-to-apples”) definitions

Business Units or Capabilities

Describe the consumers of the technology supported by IT spend.

Business Unit 1 Business Unit 2 Business Unit 3 Business Capability 1 Business Capability 2 Business Capability 3

Applications & Services

Describe the products or output delivered by IT and consumed by business units.

End User Services Business Application Services

Delivery Services Platform Services Infrastructure services Emerging

IT Resource Towers & Sub-Towers

Describe the technology functions supported by IT spend in terms and groupings relevant to the owners and consumers of those functions.

Data Center Compute Storage Network Output

End User Application Delivery Security & Compliance IT Management

Cost Pools & Sub-Pools

Describe the type of asset or service purchased using terms and groupings relevant to both IT and Finance.

Internal LaborExternal

LaborOutside Services

Hardware SoftwareFacilities &

PowerTelecom Other

Internal Services

TBM Taxonomy


Apptio TBM Unified Model™ (ATUM™)EXTENDS TBM TAXONOMY WITH

Cost Model that automates cost calculations

Guidance to find data needed by model

Metrics that you’ll track & report

To learn more about TBM, visit

TBMCouncil.org

Or

Join the 3300+ like-minded IT

leaders and become a member

of TBM Council

It’s such a great time to be in this industry. Not just as a CIO but as a technologist. The landscape is evolving so rapidly. So often we get caught up in the implementation of things and the tactical components of things, but really, we’re creating what the next iteration of

these things is going to be.”

James LaPlaineCIO, AOL & TBM Council Board of Director

“

http://tbmcouncil.org/

http://tbmcouncil.org/get-involved/index.html

Bringing the Benefits of TBM to Your Organization

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