We had a great February here at Apptio! Our customer – CME Group – shared their amazing story of how Apptio is helping them run IT like a business. CME Group manages a quadrillion dollars worth of contracts, so technology agility is key to their business.
IT organizations that are mired in a culture of cost cutting need to know two things: It's possible to turn the culture around to a value orientation, and it takes time and a focused effort to do so. CIOs and IT leaders must change the conversation, focusing the attention on business outcomes. “Game Changers,” a new Gartner report makes recommendations on five ways to help the CIO move IT from a culture of cost cutting to generating value.
Context and Introduction to Metric IT departments are increasingly pressured to have dual roles: operate as a utility provider while also partnering with the business to drive innovation. While there is no one-size-fits-all approach to managing the business of IT, some key financial metrics can help you balance these two responsibilities. This blog series will run every Monday for the next few months and discuss a financial metric that you can use to run IT like a business. Metric for the Week: Operating Profit and Margin
Cost allocation is an integral part of managing IT like a business. IT leaders must select the right strategy to allocate costs, based on their business needs. You can then gain visibility into the fully loaded cost and quality of IT services and communicate the value of IT to business leaders. You can also reduce cost without reducing quality and align with business priorities through a collaborative budgeting and planning process.
The Technology Business Management Council (TBM Council) commissioned Forrester Consulting to evaluate the metrics that CIOs use to communicate the performance and contribution of IT to business objectives. Our four-part series will highlight the key recommendations from the Forrester report. Download the whole report here.
My last blog post discussed how IT cost transparency aligns business and IT goals. I’ve seen how showing back the expense of some services to business units can dramatically change the way IT is perceived.
Service costs are comprised of your unit costs, plus the costs of the activities and products that constitute the value of the service to the business. For example, a desktop service includes more than just a PC (hardware). It also includes the setup, maintenance, technical support, network, and software. Without those additional components, a desktop is of little value to the business consumer.
Cost allocation is an integral part of managing IT like a business. IT leaders must select the right strategy to allocate costs, based on their business needs. You can then gain visibility into the fully loaded cost and quality of IT services and communicate the value of IT to business leaders.
Apptio is a high-growth SaaS applications company that gives technology leaders the facts needed about IT to make faster business-aligned decisions, improve efficiency, and communicate value. We are singularly focused on making the CIO of an organization successful by maximizing the value of the IT investment portfolio. Apptio utilized category creation to couple technology and business model disruption.
CME derives value from delivering enhanced functionality to customers and ensuring technology and data is not vulnerable to security risks. Applying Apptio’s Technology Business Management (TBM) applications has enabled CME to carefully connect its IT investments to financial and business outcomes.