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How to start your Cost Transparency journey

Last week we explained what Technology Business Model (TBM) is and its benefits and this new post will guide you on your Cost Transparency journey.

If this robust model seems too complex for your company, you probably should know that TBM is an opportunity for continuous improvement in your cost transparency journey. Just like us in our early stages of maturity, it is possible to start crawling for a later walk and run.

Cost Transparency: One step at a time

In order to achieve maturity using TBM, it is essential to recognize that small changes can be made to people, processes, and technology.

Optimising IT costs is not a project, but a discipline that will provide benefits and defensible data for your business throughout the Cost Transparency journey. Here are a few stages to consider in your process:

1. Understand investments and value in Technology

Last week Ben Moore in his article on Business Desk wrote: “New Zealand’s small businesses are throwing away $334 million each year on digital tools they’re not using, according to research by MYOB”. The current scenario shows companies are buying too many digital tools on the way to digitisation but they do not even know how to use these systems together to add value to the company. As a first step into the cost transparency journey, TBM allows businesses to look at this lack of awareness about IT spend and align IT and Finance in the same direction.

2. Capability to deliver data

When CIOs have access to trustful data, the team begins gaining credibility as a group and establishing a reputation for providing strategic and defined outcomes to the business. CIOs will be able to use real-time data and craft value conversations between IT and the business.

3. Consistency

By following the stages of the cost transparency journey, IT's involvement can grow its credibility and importance in strategic business planning. Business leaders rely on IT to generate defensible data and support them to make better decisions based on evidence.

At this stage, IT begins to show its relevance to the business and ability to provide insights and solutions.

4. Redundancies and inefficiency are easily spotted

When IT is supported by trustful and integrated data in one place, it can take control of the costs without removing business value. Having all the information in hand, it is easy to identify the inefficiencies and redundancies caused by decentralized technology spending.

5. IT Empowered

In the final stage of the cost transparency journey, CIOs are viewed as proactive leaders able to provide insights to the organisation. IT is not only anticipating the technology needs of business units, but it is identifying the technology investments that will unlock growth opportunities.

The first step

To reach the desired maturity level you can start small from where you are now. The most valuable areas should be addressed first.

For example, most companies are not able to identify if they are spending more money with contractors, they need to rely on HR best practices. With YäRKEN Foundation you can optimise your IT spend and take the first step into your cost transparency journey.

Executives quickly recognise the benefits of this journey and are open to starting an implementation plan for TBM. Providing IT management at all levels with better information will help them decrease costs, reduce effort, and reduce chasms between IT and business processes.

Get in contact with us and we can talk about your journey.