When I first began implementing Technology Business Management principles at Molina Healthcare in 2006, I didn’t realize I was doing TBM. I just knew we needed to get a handle on IT resources to better understand our costs, and from there it evolved and expanded.
Savvy IT leaders recognize the need to move IT from the role of technology operator and cost center to that of service provider and value creator. This transformation is no easy task, but IT professionals everywhere are using the principles of Technology Business Management to accelerate this shift.
Not many IT organizations perform formal chargeback. There are many reasons for this. For some, showback is enough; there are many more organizations that have some kind of showback in place than chargeback. For widely varying reasons – corporate culture, IT funding model, defensibility, time and effort, enterprise governance – chargeback is not a priority.
Interest in IT financial management tools is swelling, driving market-wide growth rates estimated at more than 20 percent year-over-year, according to new research from Gartner Inc. Driving the growth is an increased pressure on IT to demonstrate command of its costs, provide greater visibility to the business and communicate business value through a tool that supports cost optimization, showback, chargeback and effective cost transparency.
The CIO’s role and responsibilities are rapidly shifting to a more strategic function, bringing new pressures to define, measure and communicate the value of IT to the business. But what does it take to get there and ultimately, how do you get the business units to stop questioning the value of IT?
The key to executing on your IT planning strategy is securing your budget. But justifying and defending that plan can be complex – especially when it comes to convincing your CFO. Ready to find out how to effectively communicate and defend your IT budget? Join us for a one-hour webinar to learn how leading IT executives are defending and growing their budgets with their CFOs.
Today's TBM Index has been updated to reflect the learnings and best practices derived from hundreds of TBM enterprise implementations. It's further enriched by new insights derived from a series of in-depth IT leader interviews conducted by McKinsey & Company in spring 2015. As a result, this more powerful Index will assess the state of TBM adoption and identify the potential value and tangible improvements that can be achieved through the implementation of TBM.
Comparing IT costs and performance against benchmarks is an important component to measuring performance, and balancing IT service capacity against costs and agility. With Apptio’s summer 2015 product release, we’re introducing new features that help IT organizations and other enhancements to serve your benchmarking needs.
Each year, the federal government spends more than $79 billion on technology. Much of this spend is distributed across multiple agencies and component agencies with little insight into the efficiency of each dollar spent. In that respect, the experiences and challenges of the public-sector CIO are not unlike those of their private-sector counterparts – a lack of transparency into their costs and investments that is compounded by heightened expectations, the need to optimize spending and other pressures.
Adopting a new process, or a new way to perform an existing process, means change. Even if it’s smart and valuable change, it‘s still change. And change can seem scary. So, incorporating TBM disciplines and using Apptio in IT management processes may appear scary, too. But it needn’t be. Here are a few things to keep in mind that help reduce the fear and ensure adoption.