Technology Business Management (TBM) taxonomy is a modernized framework that helps you IT cost according to your IT functions, services, applications, products and business units to drive value-based business conversations at all levels. Transform your traditional IT financial model to one that aligns with your business outcomes.
- Cost Model: “perfection might be your #1 enemy”. Multiple iterations is the way for faster results. Building a comprehensive IT cost model is not an easy task as you will start with a very broad cost model. As soon as you start drilling into the details and understand the patterns of IT services and products consumption, the cost model will evolve to provide a more accurate picture of what IT actually costs in terms of business outcomes. Don’t fall in the trap of “spending a dollar to split a dime” as you may go in these rabbit holes for the sake of perfection.
- Data Quality: Every organization has data quality challenges that sometimes slow down the progression of your cost model evolution. The key action here is for every identified data quality gap, always introduce the opportunity to improve it and bake it in your ongoing process improvement across all IT functions.
- Process: build a repeatable process (inputs, activities, outputs) that you could share with your stakeholders (e.g. cost center owners, service/application owners, etc..) to follow.
- TCO: keep in mind to build an end-to-end service and consumption based cost model to better drive value conversations with stakeholders and build optimization routes for decision making.
- Optimize: this is an ongoing activity driven by stakeholders such as service, application, and product owners. Cost and consumption fluctuate month-over-month, and there should be a consistent process to understand what drives cost and consumption and always look for ways to optimize where possible.
- RACIs: this is a key area for clarity of who does what. Understanding the roles involved and the timelines is a big factor that drives the sustainability and the success of the practice.
- KPIs: Establish the necessary KPIs to create goals, capture and measure your success in this journey.
- Actionable: build a cost model that drives actionable insights and helps make data-driven decisions. Evenly-split allocation approach may work at the beginning for certain use cases and situations, but it will not be very helpful for the long-term.
EZTBM® simplifies IT business and financial management and amplifies values
Quickly provide better IT cost visibility, manage costs better, and plan more effectively
EZTBM is a game changer: from IT being a cost-center to value-center