IT and Finance leaders who are adopting or practicing the discipline of Technology Business Management (TBM) to manage their IT investments should be thinking first and foremost in terms of the TBM Taxonomy*. The primary goal of the TBM Taxonomy—in its simplest form—is to align IT financial data with IT operational data to achieve cost transparency into IT spending.
To fully reap the benefits of the TBM Taxonomy, IT and Finance leaders must continue to do two things. First, they must drive taxonomy innovation into the future of IT with digital technologies and micro-services, and, second, they must demonstrate the “art of the possible” they can achieve with a standardized approach to IT costing.
You can quickly achieve benefits from TBM by developing a goal-oriented target operating model. A TBM target operating model provides transparency into the non-taxonomy activities required by a sustainable and actionable business model. The state of your TBM maturity will never prevent this exercise from creating value. Why?
Business leaders know that frameworks and taxonomies are only as functional as the sum of all the parts supporting an operational business model—and TBM is no different. Here’s a simple exercise to get started. Brainstorm how you are integrating the following operating model components into the TBM Taxonomy:
- People and process;
- Data and analytics; and
- Technology and strategy.
Now, think through a few questions:
- What does your TBM target operating model look like?
- Does your TBM roadmap look different—and perhaps more strategic in nature—than your target operating model?
- How does your current state compare to your desired state of TBM adoption?
To read more about how to enhance your TBM program and more quickly get to your desired state, take a look at my new white paper, A Multi-Dimensional Framework for Implementing Technology Business Management.
*The TBM Taxonomy is endorsed by the TBM Council, which reviews the TBM Taxonomy with the TBM Taxonomy Standards Committee.About the author
Alex-Paul works closely with enterprise leaders, IT finance managers and IT business unit leaders to help implement the discipline of Technology Business Management (TBM) into their organizations and optimize their enterprise IT. He advises both commercial and public sector organizations on the adoption of TBM programs, designs fact-based analytical strategies and supports broader IT transformation initiatives. His development of a strategic TBM multi-dimensional framework addressing people, process, data, analytics, technology and strategy is part of ISG’s industry-leading set of market best practices and methodologies. His thought leadership has been featured in CIO Review, MiddleMarket Executive and the TBM Council’s book The Four Value Conversations CIOs Must Have with Their Businesses.