The 2018 Technology Business Management (TBM) Conference kicked off the week with the annual TBM Council Award ceremony, at which eight companies received honors for their TBM success.
Award finalists were chosen based on submissions made to the TBM Council, in which nominees self-selected into award categories and provided an in-depth review of TBM successes within their respective businesses. Each submission is backed by a team of dedicated IT professionals who sponsor and utilize the TBM framework to plan, optimize, innovate, and align with the business. TBM award winners are selected by an independent panel of CIO judges.
Congratulations to the 2018 TBM Award winners:
Business Alignment Award
Recognizing two organizations that shift from being expense centers to delivering services with greater flexibility (e.g., on demand) and transparency of cost, consumption and quality.
Award recipient: Maritz
TBM enabled Maritz’ IT department to reduce its infrastructure budget by 35 percent, from $50 million to $32 million in three years, nearly half of which was immediately reinvested in the development of new business-focused service offerings as well as enhancing the company's cybersecurity posture. This not only gave Maritz' customers greater peace-of-mind that their data was safe, it helped the company's sales force close more sales in key security-conscience sectors such as financial services and healthcare.
Award recipient: Unilever
According to Gopalan, prior to adopting TBM and Apptio in 2016, 80% of Unilever's IT costs were a black box. By the middle of 2017, they had flipped those numbers using TBM practices. In 2018, with the cost transparency provided by Apptio, Unilever had pulled 10% out of ITs run budget and increased their change-the-business budget by 11%. "What we have been able to do with the introduction of TBM and the use of Apptio Cost Transparency is to drive the right conversations with our business about the true cost of the services they are consuming. This was the process that we started in 2017 and have now adopted globally."
Business Alignment Pacesetter Award
Recognizes an organization that has made significant impact to their business within the first 18 months of practicing TBM by shifting from being an expense center to delivering services with greater flexibility (e.g., on demand) and transparency of cost, consumption and quality.
Award recipient: Great-West Life Assurance Company
Transparency into IT’s price model has allowed the Great-West Life’s technology teams to work with business units to review the infrastructure footprint of various applications. This has had a large impact across the organization. One business unit, for example, completed a review of their infrastructure consumption and was able to optimize their use of certain services to realize a reduction in charges of approximately $7M.
“Some business areas have been able to realize significant savings by engaging in large application rationalization efforts,” said Muzyka. “One area was able to realize a reduction in charges of about $2.5 million over the past 18 months. In 2018, due to efforts that they've taken in the first part of the year, they've reduced their annualized charges by about $4 million.”
IT Optimization Award
Recognizes the strategic and bold use of data to drive decisions for technology efficiency, agility, quality, performance and business value.
Award recipient: University of Pittsburgh Medical Center
"By leveraging the TBM framework, we've finally been able to share our application data with our customers who are doctors, nurses, and other executives at UPMC who do not reside within our IT organization," said Shireen Thomas, staff associate to the CIO. "And that is so powerful because it enables us to make business-driven decisions in partnership with our customers about the applications and what really would make sense to rationalize and retire. Before, it was just an IT conversation."
Because conversations are changing, so are the results. Over the past 12 months, UPMC IT has retired more than 70 applications—taking over $7M of annual maintenance costs out of the budget. In a low-margin business like healthcare, this number is actually much greater than it first appears.
IT Optimization Pacesetter Award:
Recognizes an organization that has made significant impact to their business within the first 18 months of practicing TBM through strategic and bold use of data to drive decisions for technology efficiency, agility, quality, performance and business value.
Award recipient: Fidelity International
Even as demand for new technology increases, Fidelity's IT department is under intense pressure to deliver more capabilities with either the same or fewer resources. This means IT must find ways to shift budget from run-the-business (RTB) spending to change-the-business (CTB) spending. After doing this with spreadsheets for 10 years, Fidelity has managed to achieve a very respectable 50/50 RTB:CTB ratio—all while pulling a significant number of dollars out of the IT budget.
TBM and Apptio have only been in place for about 18 months, but adoption has already enabled the ability to examine costs in real-time. This cost transparency allows IT to provide line-of-business leaders with the levers they need to change consumption in a way that drives technology dollars to areas that will provide the most value.
Strategy and Planning Award
Recognizes organizations who have found a way to develop and maintain an IT strategy and corresponding planning processes to enable IT to be the businesses’ value partner.
Award recipient: Blue Shield of California
Keeping pace with a rapidly evolving industry, Blue Shield of California (BSC) has made much progress over the past five years, and IT has been at the forefront of that transformation. Because challenges are constant, delivering on BSC aggressive business goals requires a well-oiled machine. TBM principles that have proven so effective for IT are now being applied to other parts of the organization.
Earlier this year, the Customer Experience organization, as well as the enterprise project portfolio, were integrated into the BSC TBM model and its processes to provide the same transparency and accountability originally developed for IT. Today, 60% of the operating expense is accounted for via TBM.
Strategy and Planning Pacesetter
Recognizes an organization that has made significant impact to their business within the first 18 months of practicing TBM by finding a way to develop and maintain an IT strategy and corresponding planning processes to enable IT to be the businesses’ value partner.
Award recipient: Tokio Marine North America Services
TMNA Service’s IT finance team would diligently pull together data and build allocation models in spreadsheets only to see them unravel due to an unaccounted-for exception, poor data quality, or data entry errors. With TBM and Apptio, that quickly changed. According to TMNA Services, IT finance went from spreadsheets and "gut checks" to full cost transparency in just 16 weeks. They looped in IT planning two weeks later, had end users in the budget 20 days after implementation started, and delivered the 2018 budget a month early. They also had a functional bill of IT rolling out to their business units in just four weeks.
Innovator of The Year Award:
Recognizes technology organizations that have applied technology business data and process to better satisfy the needs of the business and change conversations from cost to value (via tradeoffs).
Award recipient: Sysco
Ernie Dries, senior director, business technology, TBM, has been with the company since its founding in 1969. He says the most important benefit of TBM is the ability to break through the old silos of spending and culture that kept Sysco Business Technology from becoming the business enabler it is well on its way to becoming today.
"TBM doesn't just become an area within technology that sits isolated all to its own," said Dries. "TBM becomes the fabric of the way we operate every single day. When someone decides that they're going to spend money, the mindset of our individuals needs to be, 'Well, if we're gonna spend the money, it's not my money to spend, where are those dollars going to be directly aligned or allocated to?' That way, we're able to continuously have that constructive conversation with the business."
Congratulations to all of 2018’s TBM Council Award finalists and winners!
Visit our TBM awards page for more details on this year’s winners and finalists.