This week I had the privilege of delivering a keynote at Troux’s user conference in Austin, Texas. Troux makes software that helps enterprise architects tie IT planning processes (projects, governance, architecture, etc.) to core business goals such as revenue growth, margin expansion, and entry into new markets. Will Scott, Troux’s CMO, asked me to speak about how Apptio and Troux are working together in creating an industry standard model tying IT investments to business outcomes. You can see my full presentation.
Through the creation of Technology Business Management (TBM), Apptio has defined business processes, roles, and metrics that help technology leaders maximize the value of every dollar invested in IT. Relying on transparency, TBM defines a foundation for making the performance trade-offs needed to optimize run-the-business spending and improve change-the-business investments.
TBM and EPM give you portfolio oversight and investment context
Troux allows IT architects to tie top-down business goals into projects and capabilities to provide a structure for prioritizing and tracking corporate investments. In contrast, Apptio works from the bottom-up to show the exact cost of those resources in support of applications, IT services and business capabilities. As Apptio understands cost (and performance trade-offs) of existing IT products/services, we can provide estimates for their “headwinds” and “tailwinds” on a go-forward basis.
As an example, enterprise architects may utilize Troux to conduct an IT portfolio analysis, examining the breadth of upstream and downstream dependencies on the applications, services, and projects that IT delivers. Coupled with Apptio’s ability to determine the exact cost of each of those applications, services and projects, IT leaders now have the information needed to effectively communicate with their business partners to ensure an optimal portfolio of IT deliverables. This is but one of many examples where combining EPM with TBM changes the level of dialogue between IT and the business.
Standardizing a view of IT with ATUM
Core to Apptio’s ability to automate the measurement of IT costs in the previous example is the Apptio TBM Unified Model (ATUM). Developed by Apptio in conjunction with the TBM Council, ATUM is a blueprint that standardizes IT categories and the method for measuring their costs. Researched across hundreds of enterprise deployments, this model standardizes around seven key layers of IT, with views for stakeholders across the organization including finance, IT technologists, and business users.
By unifying the strategy and investment data in Troux with the IT cost data in Apptio, C-Suite and business executives get a complete picture of the IT landscape – enabling them to make decisions to effectively manage the cost, quality and value of IT services.
We’d love to hear how your organization’s enterprise architecture or strategy program works alongside of the IT financial management function. Leave us a note in the comments or join the conversation on Twitter or LinkedIn.
We’re excited to again have Troux sponsoring the 2nd annual TBM Conference, to be held in Miami this October. Join Apptio and Troux to learn more about how Technology Business Management and Enterprise Portfolio Management come together to help IT run like a business.