The Total Elements of Effective It Cost Management


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.



Remember: IT cost management is not a 1-time exercise. This is an ongoing practice that involves the following areas:
  • 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.

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Always think of the other person (i.e. stakeholder) and the “what is in it for me” approach when socializing the benefits of this practice. Stakeholders have different goals and personalizing the benefits to each will certainly ensure that you care about their goals and increase the trust levels. Engaging them early on is a key factor in gaining higher level of trust and producing the desired business outcomes.


Generally, stakeholders hate the manual work and spreadsheet based cost models. EZTBM helps you operationalize these practice elements and automate the process end-to-end. This will keep them focused on the outcomes to drive more accurate decisions.


Consider the full stakeholder landscape and the benefits that you can socialize with each. Examples include: CIO/CTO, CFO, TBM Analyst/Manager, IT Financial Manager, Cost Center Owner, Service Owner, Application Owner, Product Owner, Project Manager, Cloud Business Manager, Vendor Office Manager, and Business Unit Owner.

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