Implementing a technology business management (TBM) framework is one of the most beneficial ways to integrate IT into their existing organization. In the past, most IT departments functioned as a stand-alone unit that was often separated from the organization’s main goals. While a dramatic shift from previous integration methods, this recent movement creates a foundation for nearly any employee within the business to access applications, internal systems or hardware that they need the excel in their intended position while simultaneously merging IT departments into the overall scope of the business.
Although a technology business management framework is not designed to be prescriptive, it is often embraced by organizations to provide collaborative efforts between departments that not only regulate existing business management processes but enhance them to ensure they support the organization’s goals as a whole. For this reason, a well-implemented technology business management framework should be designed to grow with the organization instead of hindering advancements or restricting growth that would otherwise be unachievable.
The Benefits of Technology Business Management
For most IT leaders, expenses and spending are one of the biggest hurdles that must be overcome when transitioning IT departments to play a complementary role in the organization that it exists within. Technology business management frameworks can help these leaders gain deep insight into budget capabilities, associated expenses and the resources required to get where they need to be to meet baseline requirements, justify a larger budget to ensure legacy technology remains maintained and what new, innovative technologies may be needed in the future. However, the biggest benefit of TBM strategies is the ability to better integrate IT departments in the holistic view of an organization.
For most IT leaders, technology business management frameworks offer accurate, real-time reporting that helps drive IT initiatives while also ensuring resources are diverted to the most relevant priorities an organization may have. In essence, a technology business management framework transforms the role of an IT department from a cost-center to a part of the organization that consistently provides value and encourages profitability. Some of the key benefits IT leaders can expect after planning and implementing a TBM framework into their overall systems include:
Frameworks for Running IT as a Business
TBM ensures transparency while also providing details on both IT spend and usage to help encourage collaboration with organization partners to achieve unique goals. With this system in place, IT leaders can record and describe the value of the resources that the business is consuming and the associated costs that may be included. This clear analytical data can transform the role of the IT department at any time to improve other aspects of the business and make attaining objectives more realistic.
Improved Technology Services Through Benchmarking
Defining metrics for benchmarking through key performance indicators can help executives focus on the value IT provides to the organization by providing automated monitoring of expenditures to optimize costs and performance levels. This can paint a clear picture of what resources are available through an IT department and aid in creating strategies to allocate those resources effectively wherever they may be needed.
IT Integration Improves Business Outcomes
Through a joint budgeting process, TBM reduces costs and provides valuable insight into financial impacts and business value as well as desired outcomes. Instead of focusing on IT departments as a budgetary drain, the implementation of a technology business management framework makes it possible to utilize the department as a growth mechanism that improves revenue for the organization through collaborative efforts.
Is TBM Right for Your Organization?
If you are curious about whether technology business management is the right fit for your organization or would like to learn more about this modern framework, the team at Excipio Consulting is here to help. Through our in-depth enterprise operations review services, we can help identify which solutions will provide the maximum benefit for our clients.
Examples of Technology Business Management
Each year, the Federal government spends at lead $90 billion each year on IT. To provide a more transparent view of how this spending is being utilized, the Chief Information Officers Council and the Office of Management and Budget used a technology business management framework model to help improve IT management and services costs. As noted by the CIO Council Case Study, this is the largest implementation to date of TBM in the public sector for the State of Washington to demonstrate the value these frameworks and methodology provide.
As another example of TBM in action, a JP Morgan Chase Case Study helped the organization to shift the perception of IT as an expensive, low-business value endeavor by integrating it into their existing business. With the insight gained through a technology business management framework, the organization was able to better understand how the IT department fits into the overall goals of the organization and provide IT managers with the monetary resources they need through clear valuations. Ultimately, TBM was able to improve transparency for infrastructure and application costs to bring IT leaders to the decision-making table for the overall goals of the company.
The Formation and Contributions of the TBM Council
As a non-profit organization that works to establish best practices for running IT as a business, the Technology Business Management Council has nearly 5,800 members that have prominent roles throughout the industry as IT leaders or executives. The primary goal of the TBM Council since 2012 has been to offer standardization, education and collaboration on emerging technology business management practices. In its current incarnation, the TBM Council board of directors consists of a variety of executives from notable companies like Micron, Cisco, Intuit and more.
One of the most important contributions the TBM Council has been responsible for is the development of the TBM Index, which serves as a standardized benchmark assessment to help organizations evaluate and adopt modern technology business management solutions. According to the TBM Council, the technology business management index assesses a holistic view of what capabilities are required to manage the business of IT including tools, operating models, service orientation and much more. In addition to these insights, the TBM Index also provides evaluation guidelines for satisfaction ratings and financial impacts that may be associated with the implementation of a technology business management framework.
How Can Excipio Help?
Excipio is vendor, product, and platform-neutral, which allows our clients to rest assured we offer a completely unbiased analysis of their environment. We take pride in being our client’s best ally and trusted advisor. Our primary goal is to provide the analysis and options for clients to make informed decisions about their IT environment. For more than a decade, Excipio’s clients include a variety of Fortune 1,000 enterprises, government agencies, and vertical market industries.