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Product TCO
Turn product spend into strategic investment with clear, end-to-end visibility
How much does it really take to deliver your products?
As organizations shift from service- to product-based operating models, Finance and Product teams struggle to answer a basic question: What drives the all-in cost of a product?
Each team sees only part of the picture – leaving no single view of product cost or composition. Leaders cannot cleanly attribute OpEx or CapEx to products, compare investments across portfolios, or plan retirements with confidence. In a hybrid portfolio with services and products, apples-to-apples views break and allocation rules become fuzzy.
This fragmentation makes it impossible to attribute costs, compare hierarchies, or plan product investments and funding. With 70% of CIOs expecting to adopt a product-based delivery model within 5 years, organizations need a single, product-centric, trustworthy product view of cost and composition.
Critical capabilities
IBM Apptio Product TCO is a purpose-built solution that provides a clear, defensible view of product costs and composition, delivering end-to-end visibility across the entire product lifecycle. By unifying financial and operational data, it connects OpEx, CapEx, and cost drivers across consumers, applications, and projects into a single, product-centric view.
Critical capabilities
IBM Apptio Product TCO is a purpose-built solution that provides a clear, defensible view of product costs and composition, delivering end-to-end visibility across the entire product lifecycle. By unifying financial and operational data, it connects OpEx, CapEx, and cost drivers across consumers, applications, and projects into a single, product-centric view.
Get complete product visibility
- Gain continuous, automated visibility into true product costs and the drivers behind them.
- Allocate OpEx and CapEx to products with precision, seeing how costs from labor, applications, projects, and other areas roll up to the product level.
- Uncover cost inefficiencies, composition variances, and opportunities to optimize investment.
- Align funding and resources to the products that matter most.
Manage investments across product lifecycles
- Manage product investments across every stage of the lifecycle—from launch to retirement.
- View a clear snapshot of your product portfolio to identify what products are new, maturing, or nearing retirement.
- Ensure OpEx and CapEx are aligned with each lifecycle stage to prevent overinvestment in aging products and underinvestment in growth areas.
- Make informed spend decisions that keep the product portfolio optimized, relevant, and strategically aligned to business priorities.
Maintain portfolio alignment
- Compare portfolio views across delivery models – including hybrid models spanning products and services.
- Enable apples-to-apples comparisons across services and products with consistent drivers and allocation managed through a single catalog.
- Create flexible portfolio views tailored to each stakeholder
- Ensure portfolios remain aligned to organizational strategy by revealing where investment should be focused.
Turn product spend into strategic investments with clear, end-to-end visibility
Many organizations have transitioned from traditional service-based delivery models to a product-based approach. This transformation represents a fundamental shift in how business value is planned, measured, and delivered. To succeed, leaders must determine how to structure teams, report performance, and allocate funding in ways that reflect products rather than services – a transformation that’s complex but essential for success. Product TCO offers a purpose-built solution that delivers end-to-end visibility into product costs and portfolio composition across the product lifecycle.
Find out the all-in cost of your products
Get the product transparency and control you need to manage organizational transitions effectively, whether operating in product-based or hybrid delivery model. By directly linking financials to end products, you can optimize product investments, manage product lifecycles, and make roadmap decisions with confidence.
- Product cost and driver visibility
- Product lifecycle and investment management
- Customizable portfolio hierarchies
Answers questions like:
- What is the fully-loaded cost for our product portfolio this period?
- Where do we have budget variance?
- What projects directly support which products?
Answers questions like:
- What products are approaching the target retire date?
- Do the product OpEx/ CapEx costs align with lifecycle stage?
- How can we redirect our spend to minimize product maintenance costs?
Answers questions like:
- How does Product X roll up to our organization’s hierarchy vs the TBM taxonomy?
- Where do we have duplicative products?
- Which products in the portfolio deserve more funding?
Get the right product-centric data to the right people
Product Managers and Portfolio Leaders
Need to understand their product and portfolio costs, drivers, and status to justify budget, roadmap, and lifecycle decisions.
IT Finance
Require GL-reconcilable product views, as well as product vs service roll-ups, to eliminate manual reconciliation and ensure accurate cost allocation.
Executives and IT Leadership
Need portfolio-level costing roll-ups that support cross-product comparisons and guide funding to the highest-value products.
PMO and PPM Leaders
Require clear linkage between projects and products to attribute costs and connect project delivery to product strategy.