Technology business management

Technology Business Management (TBM) describes the entirety of measures and methods that enable a holistic view of the value contribution of IT. TBM creates transparency with regard to the costs and benefits of all IT resources involved in the value creation process. It enables the benchmarking of IT products and services between organizations.

background

Each area within a company has a holistic management approach, which makes it possible to show the value contribution of the areas for the company. There is customer relationship management (CRM) for customer care, enterprise resource planning (ERP) for planning and controlling resources within a company, and human resource management (HRM) for human resources . For IT there are currently only solutions that focus on partial aspects of IT and do not provide a holistic approach to planning and controlling the value contribution of IT. Examples are methods for the systematic control and planning of investments, projects and activities via IT portfolio management, standards for establishing IT processes ( ITIL ) or standards for ensuring management, organizational structures and processes ( COBIT ). Because the IT as a whole is not considered, the value contribution of IT cannot be shown.

aims

Technology Business Management pursues the following goals:

1. Cost transparency: Creation of transparency for the use of technology, applications and services within a company with regard to the unit costs as well as the total costs
2. Benchmarking: Comparison of IT expenses and IT unit costs for technology use, applications and services with similar organizations and between individual organizational units to determine optimization potential
3. Business alignment: Provision of total operating costs for IT services
4. Optimization of efficiency and performance: Close interlinking of the total costs of IT services with the benefit and quality of the services provided to maximize the benefit at optimal overall costs
5. Continuous improvement and planning: Continuous monitoring and review of the current services provided against new opportunities and innovations on the market (example: use of cloud services)

Processes

TBM is made up of four different processes that are intended to ensure that the right IT products and services can be provided in the right quality at reasonable costs.

1. IT transparency: IT transparency is the first process and forms the foundation for TBM. The IT transparency process determines what the respective IT products and services look like and what the associated operating costs are. For this purpose, the entire IT operating costs are also determined. In a further step, benchmarking is carried out and the respective IT costs between internal departments and with external organizations are compared. The IT transparency process provides verifiable key figures relating to finances, performance and the benefits of the individual IT products and services.
2. IT Billing & Demand Forcasting: This process aims to create an understanding of the internal billing as well as the quality and consumption of the individual IT products and services in order to make them available to the business side via a service catalog. On the basis of the products and services selected by the business, more precise forecasts regarding demand can be made. The company's own business-relevant processes can be supported appropriately and new project investments can be planned if necessary.
3. IT Planning: Building on the results of the “IT Billing & Demand Forcasting” process, IT can coordinate and prioritize demand. The entirety of the IT products and services requested by the business can be assigned to individual clusters. The external purchase of individual assets, the IT products and services provided for the business, can thus be optimized and procured just in time if necessary . The costs incurred in relation to the procurement are transparent and can be measured against the defined budget. Expenditure forecasts can be precisely determined.
4. IT & Vendor Performance: In this process, pre-defined service levels and KPIs of the respective IT products and services, which are contained in internal and external contractual documents (e.g. SLAs , OLAs, UCs ), are measured and compared. Evaluate u. a. the benefit, the utilization or whether the IT products and services provided are offered at optimal prices. This can result in actions and individual assets that do not deliver the desired performance can be optimized or exchanged. Unused resources can be activated. This information can be used to optimize contracts internally as well as with the service recipients.

Individual evidence

1. ^ About the TBM Council. (No longer available online.) January 3, 2015, archived from the original on January 3, 2015 ; accessed on March 16, 2018 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  
2. ↑ Apply Technology Business Management To Shift From Tech Cost To A Tech Value Conversation. Retrieved March 16, 2018 . 
3. ↑ Technology Business Management. Retrieved March 16, 2018 . 
4. ↑ Learn Why One Third of the Fortune 100 Uses Apptio. Retrieved March 16, 2018 .