A Technology Business Management (TBM) solution is a framework for companies to better understand and manage their IT costs and services. With rising technology budgets, getting good value for money spent is key. ITBMO Technology Business Management Solution gives business leaders the details they need to make smarter IT investment decisions.
What Does TBM Do?
TBM gives transparency into IT spend from the top down. It creates a system to capture all IT costs – hardware, software, services, staffing. Then it allocates these costs to the business services that IT enables such as delivering applications to employees or storing data securely in the cloud.
Leaders can finally connect IT costs to business value while making IT a strategic investment, rather than just an expense. The TBM system categorizes IT costs into clear TBM taxonomies such as IT infrastructure, applications, IT management, or IT projects. Business leaders now have insight into true IT costs per business service.
How does per-employee IT spend compare to peers? How efficient are our data centers? ITBMO TBM answers these questions and provides benchmarks for comparison.
With TBM, IT talks the language of business. Conversations focus on business value, not technical details. Both IT and business leaders understand how technology spending fuels business priorities and how to adjust if needed.
Why Do Companies Need TBM?
For many organizations, IT spending is a black box where decisions are made in the dark. Budgets grow yearly, but leaders lack visibility into exact spend. TBM opens the black box and brings light to business decisions.
An application might have high licensing costs yet enable revenue growth. A data center upgrade might prevent outages, but its ROI is unknown.
Leaders can now pick IT investments that bolster efficiency, growth and innovation while cutting low-value spend.
How Does TBM Boost IT ROI?
TBM powers smarter IT spending in several ways:
- Reporting on true IT costs per business service. No more guessing where the money goes!
- Calculations of IT spending efficiency – spend per employee, per application. Identify wasted resources!
- Benchmarks for cost and quality of IT services – how does my IT shop compare?
- Modelling to predict ROI of IT investments. Which drive growth and productivity?
- Visibility to optimize spending – prune low-value IT costs, fund high-impact IT projects.
TBM helps shift IT budget from running the business, to growing the business. Technology becomes a profit driver, not just an expense.
The Steps to Implement TBM
Launching TBM takes work, but pays dividends. The key steps are:
- Document IT costs – staff, hardware, software, services, facilities.
- Map costs to IT services using TBM taxonomy – networks, data centers, applications etc.
- Allocate IT services to business units based on utilization.
- Calculate benchmark metrics like IT spend per full-time employee.
- Model IT investments against business priorities – growth, efficiency etc.
- Optimize spending decisions and budgets to improve ROI.
- Review and adjust TBM methodology as strategy shifts.
It takes tools and skilled staff to collect, model and analyze TBM data, yet with this discipline, studies show a 5-30% in IT cost savings in just a few years.
The Bottom Line
Every business relies on technology, but most struggle to connect IT costs with business value. The ITBMO Technology Business Management Software solution changes that. With detailed TBM data, leaders make IT investments with purpose. Spend aligns tightly to strategy, and anything that doesn’t drive productivity or growth gets pruned.
Schedule a demo with our team to see how EZTBM simplifies Technology Business Management and amplifies value!
