There are a few frameworks that can be applied with varying degrees of flexibility to your enterprise's business model but one of them is calling the attention of most CIOs and CFOs: Technology Business Management (TBM).
Technology Business Management (TBM) is an IT framework that implements a standard taxonomy for IT spending. In contrast to other frameworks, TBM helps businesses integrate IT with their overall business strategies and allow leaders to run IT like a business, a concept that is quite new for most companies.
Today, IT departments are the foundation of any successful business. But how TBM can benefit your company?
5 Benefits of implementing Technology Business Management (TBM)
In TBM, IT is managed like a business, value conversations are facilitated, and IT spending is optimised in alignment with business strategy and goals. But the framework has also several key advantages, including:
1. Communicating budgets in a way that co-workers can understand:
Implementing a framework to manage IT spending gives IT teams the ability to have a better conversation with Finance and Procurement supported by data.
2. Gain a better understanding of cost and consumption
In TBM, cost and consumption are heavily emphasised, as well as the role they play in delivering overall value. This enables companies to align their IT budget with their IT goals, ensuring a technology-driven organization that brings value to customers within their budget.
3. Repositioning IT as a service broker instead of a buyer
TBM model enables IT to act as consultants for the business, supplying technology services both internally and externally based on the business needs and objectives empower companies to make smarter value-based decisions.
4. Develops a plan for improving
The objective of TBM is strategic, and best practices recommend creating a roadmap where technology plays an important role in continuous improvement. Consequently, businesses that utilise TBM frameworks run more efficiently and gain transparency through mapping throughout every step.
5. Ensure a fast response time
By incorporating TBM into day-to-day operations, teams can effectively respond to market changes and threats, ensuring their business plans are the right ones. A culture of transparency contributes to this.
Is TBM right for your company? How can you start improving your company's results?
Credibility is at the core of TBM, and it is data quality that establishes credibility. TBM programs should incorporate data quality right from the beginning.
If you plan to implement TBM in your company and improve results you can utilise Yarken Foundation. By using YäRKEN Foundation, everyone can see the financial data allocated across the Technology Business Framework.
This robust model allows Architects and Finance teams to allocate spending across Costs Pools, Towers, Solutions, and Business Units in the TBM Taxonomy and make cost models that allow you to visualise your spending on various dimensions.
Click here and learn more about YäRKEN Foundation.