Most organizations struggle with how the growing cost of technology (IT) is being managed. Technology Business Management (TBM) is the answer to that problem. With the introduction of this tool by the TBM council, business and technology leaders now have a standard model (or language) to manage IT spending for running and growing the business. In this blog, you’ll learn more about TBM and learn why it’s a powerful tool for your business.
What is Technology Business Management?
Technology Business Management (TBM) is a discipline and framework that helps organizations manage their technology investments effectively and align them with business goals. TBM provides a structured approach to understanding, optimizing, and communicating the costs, value, and performance of technology and IT services within an organization. It enables better decision-making, cost transparency, and accountability regarding technology investments.
The power of TBM for your organization
The unique benefits of TBM emphasize its role in fostering better communication between IT and the business, promoting benchmarking for performance improvement, and ensuring that discussions about technology investments are well-informed and value-driven.
- Standardized way to categorize: The use of TBM taxonomy provides a standardized way to categorize and report IT costs. This helps create a shared language between IT and business, making it easier to communicate effectively and understand each other’s perspectives. This provides clarity and alignment in discussions about technology investments.
- Compare costs TBM also allows you to compare your organization’s costs and performance metrics to those of peer organizations. This benchmarking capability is valuable for identifying areas where your organization may be over- or underperforming compared to industry standards.
- Data-driven models: TBM enables value-focused conversations by providing metrics, reports and analytics based on data-driven models. This empowers discussions about IT investments to be grounded in quantifiable data, enhancing the quality of decision-making and ensuring that resources are allocated where they can deliver the most value.
Want to learn more about all the benefits of using TBM for your organization? Read our blog about the 7 advantages of Technology Business Management.
Implementing TBM with intuitive software
CostPerform offers you an usefull TBM template that gets you starter really quickly. Working with CostPerform doesn’t require any IT knowledge because it’s so intuitive and easy to use. We guarantee that your company will be able to quickly start finding the solutions to the most complex cost and performance issues, like TBM. Based on experience, our software helps a lot of business with increasing effectiveness and efficiency during the implementation and operational usage of the cost models.
Our TBM template offers you a TBM-compliant cost model. It provides the essential financial and operational tooling to implement the TBM framework within your organization. For example, you can implement in such a way that you will also be able to manage all your cloud suppliers according to their detailed billings.
Connecting your business to your IT department via TBM automatically establishes full transparency. You can trace back every IT line item 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 proper cost consequences in mind. Subsequently, you can show differences between business units, time periods, and expenses and have the right conversations. With CostPerform, you can readily answer these questions. Last but not least, you can improve and shorten the budget period by connecting the budget directly with business needs. This way, business requirements drive the IT budget needs.
When implementing TBM, CostPerform stands out as a user-friendly and intuitive software solution. It offers industry-specific template models and methodologies, simplifying the implementation and operational usage of TBM within organizations. CostPerform enhances transparency and strengthens the connection between the business and IT departments, facilitating detailed IT billing, performance tracking, and budget alignment with business needs.
In essence, TBM, coupled with the user-friendly CostPerform software, addresses the challenges posed by technology costs and performance management. By adopting this combination, organizations can achieve greater transparency, data-driven decision-making, and improved alignment between IT and business goals, ultimately maximizing the value of their technology investments.