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From Inputs to Outputs: How Swedish Match IT Increased Discretionary Spend 20-Fold - Bill of IT Summary

To accelerate a business and IT transformation, Swedish Match uses TBM principles to focus business conversations on the outputs of IT services and how they drive shareholder value. Shifting from a mostly regional outsourcing model to a central shared services function, the Group IT organization has been able to reduce run costs by one third and increase discretionary spend 20-fold.

Better Planning Leads to Better Outcomes at CHRISTUS Health

Given aggressive asset growth plans for the business, CHRISTUS Health created new levers for cost savings and cost avoidance in order to contain IT spending and improve IT leverage. By modeling and reporting on the TCO of 1,200 applications, they were able to identify spend per service category and applications on a monthly basis. This helped tie a $60 million growth in application spend to increased demand for resources, leading to more productive C-suite conversations about consumption.

Bringing Clarity to IT Costs for Berkley Technology Services

Moving towards a cohesive and collaborative system, Berkley Technology Services (BTS) enhanced the IT allocations methodology while changing the conversation from costs to value. Implementation of their TBM system helped shape the decision making process by providing transparency into accurate information. Showing the value of IT at a granular level and explaining what services contributed to driving the expenses in each business enabled better analysis and an increased rate of innovation and growth. 

 

 

Demystifying IT Elevates Cargill Team to Leadership Role

In the last couple of years, Cargill has brought all of its IT spend into global IT owned and managed service lines. Global financial data is pulled together to create a service-oriented bill of IT that has shifted conversations with the business to value vs. cost. Now, Apptio IT Planning is helping the team push accountability to business owners, promoting a focus on value creation and innovation instead of the cost of the IT bill. New efforts to plan and forecast in real-time are helping the team evolve from order takers to innovative leaders within the organization.

 

Saving $330 Million at HP Enterprise

Hewlett Packard Enterprise needed to move away from being an unexplainable tax to the business and toward becoming a true strategic partner. They needed to shift substantial funds used to run the business into changing the business while, at the same time, offering complete cost transparency into technology expenses. With the help of TBM, Hewlett Packard Enterprise is on track to do all this and save $330 million over three years.

 

How Nomura's Global Cost Model Shapes Business Demand

To address growth in its cost base accelerated by acquisitions, Nomura wholesale services uses TBM to give each business unit a service view into its IT consumption, costs and choices. IT Global Finance links regional cost models into a consolidated global view to help the business accelerate market strategies, application build-or-buy decisions, and manage consumption. Choices by the business drove a 35% reduction in physical servers.

How Freddie Mac IT Used Data to Change the Dynamic with the Business

To communicate cost and value to its business units, Freddie Mac uses TBM to translate IT component and resource costs into service costs the business values and choices they can make. The business was so pleased to be brought “out of the darkness and into the light” with the consumption-based showbacks that they led the charge to replace the company’s fixed IT cost allocations with a consumption-based cost model.

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