Technology Business Management (TBM)
Manage IT spending for running and growing a 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 common model (or language) to jointly manage IT spending for both running and growing a business.
Technology Business Management provides a framework for understanding the relationships between the primary processes of the business and the level of IT spending. In many industries, we see that IT becomes the primary process of the company and needs to be managed as such. CostPerform’s Cost 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
Ever so often business and technology leaders will find themselves in discussions around budgets and technology spending. While both understand 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. By connecting these different languages with Technology Business Management and through a common taxonomy that both parties understand, you can start the right conversations. For running the business, IT will be able to show its value to the business, while the business is able to align its portfolio with the incurred IT spend of that portfolio.
And while growing the business, thanks to TBM the two parties can actually sit together and look at innovation possibilities through a common lens. Technology Business Management even allows for the right discussions on business agility by trying to change the IT cost structure to as much variable costs as deemed appropriate.
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. And with the right connection between business and IT, these volume-based 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 CostPerform’s Technology Business Management software 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. Reversely, changes in the business models will automatically result in changes in your IT model.
Technology Business Management at the Small Business Administration
Technology Business Management gives you the right information for the right decision
When connecting business and IT with Technology Business Management, another opportunity arises: full transparency. Since every line item of IT can now be traced back towards the business initiatives and vice versa. It’s time to open up this information and use it for different purposes. First of all, you should supply the business with a detailed bill of IT so demand can and will be shaped with the right cost consequences in mind. Subsequently, you can show differences between business units, time periods, budget/expenses/planned based upon the right conversations. Are the differences a result of increased/decreased volumes or is input price a factor? With CostPerform you can find an answer to this question.
Last but not least: you can drastically improve and shorten the budget period by connecting the budget directly with the business needs. It will be the business who decides the needed level of IT budget, not the other way around.
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. CostPerform’s Cost Management software offers you the needed financial and operational tooling to implement the TBM framework within your organization.