Benefits of Technology Business Management

A TBM solution enables IT organizations to drive transparency of the TCO of IT Services to establish a deep understanding of IT cost drivers. Companies using TBM, through deep cost driver analysis, use of industry benchmarks and What If scenario analysis, have been able to systematically reduce cost and improve the performance of IT year over year.

Visibility into the TCO of IT Services drives cost optimization decisions

With a detailed understanding of how costs are flowing through their IT infrastructure, IT can analyze financial and operational data to make more effective, ROI-based decisions on key initiatives such as Applications Rationalization, Platform Standardization, Data Center Consolidation, Service Level Optimization and Storage Optimization. 

Decide when to use cloud or other third party services

A TBM solution enables IT to evaluate the ROI of using third party services within the IT supply chain.  While many IT organizations are focused in the near term on building an internal private cloud, they are actively evaluating the use of targeted cloud services such as Email, storage and virtual servers for immediate use. To accurately assess the ROI of cloud alternatives, IT must first understand the true TCO of their internal services and compare that to the fully-loaded cost to run in the Cloud, which often includes some level of internal infrastructure change and on-going support.

Empower the Lines of Business to partner more effectively with IT

A TBM solution enables IT chargeback using a Bill of IT so organizations can clearly articulate to the business the consumption of IT services, how much they are being billed for each service and the quality and value of the services delivered.  The Bill of IT lays the foundation for managing future demand and changing business behavior. As a result, business units can understand what comprises the full cost of IT Services, how much they are consuming and what choices they have to reduce cost or allocate to higher priority initiatives.

Increase the utilization of fixed assets to drive down unit costs and drive up return on assets

Given that large portions of the IT cost structure are highly fixed, driving a better return on assets is as important as identifying opportunities for cost reduction. Driving up utilization across all fixed assets is the simplest way to drive down IT unit costs.

Change business behavior and create a culture of accountability across IT at all levels

A TBM solution is more than just a point-in-time cost reduction exercise.  TBM gives IT a system and process for empowering every IT manager to hit cost reduction targets year over year.  TBM also provides IT leaders with the data and reporting capability to convince business leaders to change inefficient use of IT, fully fund new initiatives based on multi-year cost to operate and support initiatives that align with business priorities. 

Drive an efficient budgeting process that tracks to actuals in real-time

A TBM solution enables IT organizations to align all future IT spend at the budget, forecast and operating plan level to key business priorities.  Budgeting and planning with TBM enables IT and business budget holders to manage the budget from an IT Services perspective as well as a General Ledger perspective, and dramatically reduce budgeting cycle times, improve accuracy and track budget to actuals in real time.