Technology Business Management (TBM)

Definition - What is Technology Business Management (TBM)?

Technology Business Management (TBM)is an IT management framework that implements a standard IT spend taxonomy. TBM enables organizations to disaggregate IT spending into smaller, consistent categories to provide CIOs and other C-suite executives with a more accurate and detailed understanding of their organization’s IT costs. This allows CIOs to identify duplicative or unnecessary spending and to make better informed decisions regarding future investments.

Principles of Technology Business Management (TBM)

According to the TBM Council, the 10 core principles of TBM includes:

• Position for value: Define what IT offers and how the department is valued throughout the organization.
• Continuous improvement: Build a roadmap for TBM maturity by embracing TBM into the day-to-day business and ensuring TBM is at the forefront of every value conversation.
• Create transparency: Help define IT’s value by translating “spending, consumption and capacity into meaningful perspectives for technology and business decision-makers.”
• Shape business demand: Highlight cost and consumption trends across business units to inform future budgets and decisions.
• Deliver value for money: Offer valuable and cost-effective services and products.
• Plan and govern: Collaborate and align business units’ budgets with IT so all technology needs are met.
• Cost for performance: Offer innovative technology and services while maintaining an eye on the bottom line.
• Business-aligned portfolio: Build a portfolio that demonstrates how much value is offered by a service, product or processes compared to the level of spending.
• Investment in innovation: Assign resources to innovative projects throughout the organization.
• Enterprise agility: Respond quickly to opportunities and threats as they pop up in the industry.

TBM Roadmap to Maximize the value proposition of your IT

Technology Business Management (TBM) is the discipline that targets maximizing the value proposition of your IT. Making your expenses transparent will create the base for systematic optimisation. Maximized IT value propositions are possible by ‘managing IT like a business’ and are the foundations that a competitive edge is built on. Two essential principles describe the necessary TBM actions that optimise the value proposition of IT:

• Reducing ‘Run the Business’ costs to a sensible minimum
• Managing investments in ‘Grow the Business’ and ‘Change the Business’

source: Indi Tango

See Also

IT Financial Management (ITFM)
IT Cost Allocation
IT Chargeback
IT Cost Optimization
Federal IT Acquisition Reform Act (FITARA)
Total Cost of Ownership (TCO)

Further Reading

• Technology Business Management: The Four Value Conversations CIOs Must Have With Their Businesses Todd Tucker