Technology Business Management
Run IT Departments like a business.
What is Technology Business Management?
Technology Business Management (TBM) is a management discipline by which the primary objective is to run Information Technology (IT) departments like a business. More specifically, TBM:
- Better aligns technology delivery with organization needs and strategy
- Improves collaboration and management efficiency with the IT organization
- Provides better financial and non-financial metrics to illustrate IT value and service performance
- Evaluates IT invest and disinvest opportunities in a customer-centric manner
- Provides a systematic methodology to lower the cost to run technology and use available cost savings to innovate
- Creates a common language to use with key stakeholders of the IT decision making process to understand customer needs and solutions
Why is TBM necessary?
An organization’s operating model depends on technology. As the technology has increased, so has the need for a management discipline.
What Value does TBM offer?
- Realizing cost reduction by identifying areas for focused effort due to excess capacity, low demand, high unit cost, alternatives
- Optimizing uses of funding and rationalizing portfolios such as platforms, applications and vendors
- Aligning technology spending and investments to business priorities
- Discussing the IT budget in terms that business partners can understand
- Shifting IT into the role of a service broker instead of an order taker
- Reporting IT costs along with non-financial metrics
What does TBM look like in tangible terms?
TBM in the organization:
- A small team of skilled and experienced team members who draw upon the collective expertise of the organization
- Collaboration among organizational leadership, technology, finance and procurement
- A lot of engagement, data modeling and constant learning
- Effective reporting targeted to each stakeholder group
- Identification and evaluation of best practices within and outside the organization
- Continuous improvement aligned with organizational needs and technology advancements