Technology Business Management (TBM)
Manage IT spending for running and growing the business
The benefits of CostPerform’s Technology Business Management software
Most organizations struggle with the way the growing cost of technology (IT) is being managed. With the introduction of Technology Business Management (TBM), business and technology leaders now have a standard model (or language) to jointly manage IT spending for both running and growing the business.
TBM provides a framework for understanding the relationships between the business’s primary processes and the level of IT spending. In many industries, IT becomes the company’s primary process and needs to be managed as such. Our cost & performance management software comes with a Technology Business Management template that offers you a TBM compliant cost model, providing the essential financial and operational tooling to implement the TBM framework within your organization. This framework can be implemented in such a way that you will also be able to, for example, manage all your cloud suppliers according to their detailed billings.
Most important Technology Business Management (TBM) features
Create transparency by showing the business your cost structures
CostPerform can produce a bill of IT to support and influence business demand
Lets you measure differences between business units, time periods, suppliers and more
Link with the software your business plans to your technology costs
Technology Business Management lets business and IT speak the same language
Often, business and technology leaders will find themselves in budget discussions involving technology spending. While each party understands dollar amounts, in meetings they rarely speak the same language. IT leaders state their budget in terms of computing, storage, and data center necessities. Business leaders want to talk about products, markets, and services. Connecting these different languages using TBM and its common, easily understood taxonomy that both parties understand, you can start the right conversations. Using TBM, IT can show value through business optimization; while the business can align its activities to its IT spending.
And while growing the business, thanks to TBM, the two parties can look at innovation possibilities through a common lens. Technology Business Management even allows for business agility discussions by adapting the IT cost structure to the appropriate cost variables.
In CostPerform, you can literally and physically connect your IT model with the Business Models, where the output of the IT model is the input for the business models.
TBM allows for a seamless connection between business and IT
Instead of IT defining its catalog, it is now the business that drives the services coming from IT. With the right connection between business and IT, these volumebased drivers extend towards something far more sophisticated than a ‘simple’ Products and Services catalog. By continuously improving this connection, the integration of IT within the business becomes almost seamless. With our TBM software, you can literally and physically connect your IT model with the Business Models, such that the output of the IT model becomes input to the business models. Likewise, changes in the business models will automatically result in changes in the IT model.
Technology Business Management at the Small Business Administration
Technology Business Management gives you the right information for the right decision
Connecting your business to your IT department via TBM automatically establishes full transparency. This occurs because every IT line items can now be traced back to the business initiative it supports and vice versa. Disclosing this information and making it available to decision-makers has other advantages. First, your IT department can now provide your business managers with a detailed IT bill so demand can and will be shaped with the right cost consequences in mind. Subsequently, you can show differences between business units, time periods, and budget/expenses and have the right conversations. Are the differences a result of increased/ decreased volumes, capacity utilization and efficiency, or is input price a factor? With CostPerform you can readily answer these questions.
Last but not least: you can drastically improve and shorten the budget period by connecting the budget directly with business needs. This way, business requirements drive the IT budget needs, rather than vice versa.
CostPerform Technology Business Management (TBM) in short
Technology Business Management provides a framework for understanding the relationships between the business and the level of technology spending. Our cost & performance management software offers you the needed financial and operational tooling to implement the TBM framework within your organization.