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It has been about a month since the TBM Council announced my appointment as CEO, and I am very excited to lead the Council as we move into our next phase of growth. I have been with the TBM Council since its early days, when I was one of a handful of CIOs sitting around a boardroom table sharing war stories and best practices in our IT work (see top left of this infographic).

 

As each of our IT departments grew in size and complexity, we realized every IT department, across every industry, needed to find a common language with our partners on the business side, a way to talk about the value of IT’s contribution to the enterprise. Providing a framework and best practices for making that sea change has helped TBM grow from a spirited conversation to an emerging category in the IT industry. This November we will hold our first TBM Conference in Seattle, with an amazing lineup of speakers who have successfully transformed their IT organizations with TBM.

 

I knew from the start our group had the potential to change the way IT departments were run. Now with more than 800 members, we have an even more ambitious charter—to lead our profession toward a standard set of metrics that communicate the business value of IT.

 

This year we will focus our efforts on three strategic initiatives:

  1. Develop a self-sustaining business model. The Council has accelerated its recruitment of new partners to underwrite its programs, and will announce the first in a series of new partners later this year. Apptio will continue its support in the role of technical advisor.
  2. Launch industry-specific workgroups. In a few weeks we’ll roll out the structure of vertical industry workgroups, which will provide more focused guidance and benchmarking indices for IT leaders in sectors including financial services, healthcare and energy.
  3. Create a new research committee. The Council is currently undertaking research initiatives with Dartmouth University and Forrester Research. The findings of these studies will form the basis of a thought-leadership platform for the Council, helping us become the authoritative voice on the alignment of IT performance with business objectives and macroeconomic trends. Formalizing a committee to guide future research will ensure that we stay ahead of the trends.

 

I look very forward to working closely with our Council members as we grow into an independent entity and pursue the highest ambitions of our profession. The TBM Conference will be a seminal moment for us, so if you haven’t registered already, please do.

 

For updates on the TBM Council, be sure to join our LinkedIn Community and follow us on Twitter @TBMCouncil.

One of the most common questions we hear is “How do you make TBM work in the real world?” While there are many ways to answer this question, we usually find ourselves discussing the core Technology Business Management (TBM) program office, roles, skillsets, and so on.

 

These elements were discussed in chapter three of the TBM eBook and are the focus of the next installment in our series of management summaries. In particular, this summary discusses how to:

  • Deliver the necessary fundamental reports. Technology service owners, resource owners, project owners, and others are responsible for different layers in the technology value chain. To meet the decision-making needs of these managers, six key types of reports are necessary: service reports, resource reports, project reports, cost recovery reports, general ledger, and executive dashboards.
  • Staff the right skillsets and experience. Service owners, business relationship managers, and other TBM roles are the consumers of transparency—responsible for making decisions. But what about the roles that we need to create and sustain that transparency? To achieve this, additional roles such as TBM analyst, TBM program director, and executive sponsor are also required.
  • Define the essential elements of a transparency system. Many different tools can be used to build a transparency system. Regardless of which tools are used, essential requirements should include scalability, flexibility, automation and error handling, delivery of the right information (e.g., both prepackaged reports and the ability for users to create their own), and security.

 

If you want to learn more about how to make TBM sustainable, there are a number of useful resources. For those wanting to explore the topic in some depth, we recommend reading the TBM eBook. We also hosted a TBM Council teleconference on the topic; the summary, transcript, and recording for the teleconference can be found here. Finally, we hosted an Apptio webinar on the topic, featuring Chuck Niethold from First American (available here to registered users).

 

Of course, we also encourage you to stay tuned for additional management summaries, which Apptio will continue to create as new TBM eBook chapters are published. The chapters will cover topics such as creating a bill of IT, performing demand-based planning, building on the decision-making capabilities of the TBM Framework, and so on. You can find all of the management summaries in the series here as they are published.

In chapter three of the Technology Business Management (TBM) eBook, the TBM Council discusses how to use models to create proper transparency for decision making. Data models—as applied using a technology like Apptio’s—transform existing information into meaningful perspectives so that the right people can make the right decisions. (See my previous blog post for more on “meaningful perspectives.”)

 

Apptio and TBM are not the first to leverage such models, nor to recognize the need to transform cost data in order to more effectively manage the business of IT. Corporate general ledgers, which capture and report cost information to support financial reporting, simply aren’t up to the task—nor are they meant to be. Instead, they sacrifice rich analysis for comparability with other businesses and for comparisons between reporting periods. After all, manufacturing companies, patient care providers, home loan providers, and many other types of businesses all use analytics to transform general ledger data into meaningful cost perspectives. Why should IT, which is just as complex, be any different?

 

The next installment in our series of management summaries for the TBM eBook focuses on how to use data models for TBM. Again, while we recommend that TBM practitioners read the entire eBook chapter, these management summaries can be used to help your corporate finance partners understand the approach you’re taking to cost modeling, beginning with why it’s needed. Topics covered in this latest management summary include guidance on how to:

  • Find the various types of data that are needed
  • Build a layered cost model
  • Choose the right allocation methods
  • Handle cost elements that warrant special attention
  • Incorporate service performance into the model
  • Use a core cost model as a template for other useful models
  • Overcome data quality issues
  • Benchmark cost and performance
  • Create trust in our models

 

Chapter three also explores how to make the transparency enabled by your model sustainable and scalable. We will cover this in our next management summary, which is coming soon. You can find all of the management summaries here as they are published.

If you’re already on the Technology Business Management (TBM) journey, you’ve almost certainly had to decide on the reports, dashboards, and analyses that your people need to make better decisions. Indeed, the ability to make faster, fact-based decisions about how to optimize run-the-business spending and get more out your innovation dollars is largely what TBM is all about. But what decisions do you need to support? Who makes those decisions? And what information do they need?

 

The TBM Council discusses these very questions in chapter three of the TBM eBook (Technology Business Management: How Innovative Technology Leaders Apply Business Acumen to Drive Value). While we recommend that TBM leaders read the eBook, we’re also delivering condensed “management summaries” for you to share with your colleagues and business partners. The next installment in this series of management summaries, which is now available, focuses on these important questions in relation to the four types of decision-making capabilities defined by the TBM Framework.

 

For example, the “optimize cost-for-performance” decision-making capability depends on making informed tradeoffs between cost, performance, capacity, and more. To make these tradeoffs, our decision makers need a supply-side view of their services, projects, and technologies. However, they also need to understand demand and utilization. The remaining three decision-making capabilities defined by the TBM Framework depend on other, different perspectives. In chapter three of the eBook, and in the first of the three management summaries, we discuss the supply- and demand-side views that are needed for all four types of decisions.

 

Figure 1: Service owners need views to help them optimize cost-for-performance of their services.

 

Use the management summary to share these lessons with others in your organization. We especially recommend it for your corporate finance partners, who can use it to understand why you are transforming their corporate financial data into different views. You may also want to share it with your service owners, application owners, portfolio managers, operations analysts, and other stakeholders, who may need a unique perspective of cost, performance, demand, and utilization.

 

Keep an eye out for our next management summary, covering the second part of chapter three, which explores how to use models to transform your data. You can find all of the management summaries here as they are published.

The Technology Business Management (TBM) Conference is THE ONLY conference that brings together Fortune 1000 IT Executives to learn from peers who have successfully transformed their IT organizations with TBM.

 

Industry leading companies including Boeing, Facebook, Coca-Cola, Safeway, Target, and Xerox have embraced TBM. Come meet them and find out why and how at the conference. Here are the Top 10 reasons to attend the TBM Conference:

  1. Meet thought-leading CIOs, CTOs and CFOs and learn how they demystify value.
  2. Insightful presentations from industry leaders including Rebecca Jacoby of Cisco, Mike Benson of DIRECTV and Larry Godec of First American.
  3. Transformative lessons such as ‘How to use TBM to Accelerate Change’ presented by Joe Rafter at PG&E.
  4. 22 case studies featuring Fortune 500 best practices, end- user challenges, experiences, and successes with TBM.
  5. A flexible conference schedule that’s based on your role. Attend the first day only if you’re a CIO, attend additional days to learn about how the magic happens.
  6. The first ever TBM Council Awards – MC’d by the CIO of Boeing, Kim Hammonds. The Awards will recognize industry thought leaders and innovators.
  7. Exciting Ancillary events – Chihuly Glass & Garden with Space Needle Tour, Museum of Flight Banquet, and a Rock N Roll event at the Experience Music Project.
  8. Learn how Goldman Sachs, First American and DuPont IT organizations are becoming better service brokers.
  9. Discover innovative approaches to application and project portfolio management – rationalization, risk management, innovation programs.
  10. Because haven't you always wanted to come experience true Seattle weather and enjoy a hot cup of Java in the coffee capital of the world?

 

Register today! I look forward to seeing you at the conference!

We are pleased to announce the third installment in our series of management summaries for the TBM eBook (Technology Business Management: How Innovative Technology Leaders Apply Business Acumen to Drive Value). Written for business technology executives and managers responsible for building or running a technology business office (or TBM program office), chapter two of the eBook describes how to build the right foundation—from defining your value proposition to understanding the roles and responsibilities that are necessary for managing your portfolios.

 

Due to the richness of chapter two, we created two separate management summaries. By reading the first management summary, readers will discover how to define a unique value proposition, deliver services aligned to that value proposition, and manage investments as a portfolio. In the second management summary, readers will learn about the foundational roles and responsibilities required to optimize value creation and delivery under TBM. These roles include:

  • Supply-side roles such as service owners and service portfolio managers, who focus on optimizing the cost and quality of our services as a means of running the business more cost-effectively.
  • Demand-side roles such as business relationship managers and business process owners, who focus on increasing the value of services to help grow and change the business through increased innovation and agility.
  • IT finance professionals, who provide the financial expertise and analysis needed for informed decision making across both supply-side and demand-side roles.

 

Feel free to share the entire eBook and any of our management summaries with others in your organization. They could be useful for the office of the CIO as well as your strategists, service managers, portfolio managers, IT and corporate finance officers, and others who have a stake in the effectiveness of your business management processes.

There are less than 90 days to go before our inaugural Technology Business Management (TBM) Conference convenes in Seattle—but who’s counting? We are! Because we’re working at a feverish pace to make sure this three-day event (November 4-7) is pure platinum for you.

 

What is the TBM Conference?

The TBM Conference will bring together Fortune 1000 CIOs, CTOs and CFOs along with their TBM office leaders to learn from executive peers who have successfully transformed their organizations with TBM. Innovative and industry-leading CIO’s tell us on a regular basis how valuable TBM is, and how it has transformed their businesses. That’s why nearly a third of all Fortune 100 companies—including Boeing, Facebook, Coca-Cola, Safeway, Target and Xerox—have embraced TBM. We’re inviting them all to attend the conference in November.

 

We’ve structured the TBM Conference with busy CIOs in mind. Day 1 is all about CIOs, and it will consist of CIO presentations and connective networking, which is always key. We know time is precious, so if you only have one day to attend this is it. Days 2 and 3 are designed to help the CIOs’ team leads learn practical lessons for building and leveraging a TBM program. Our power-packed lineup of 51 insightful speakers and panelists, includes:

  •   Rebecca Jacoby – CIO, Cisco
  •   Mike Benson –CIO, DIRECTV
  •   Tim Campos – CIO, Facebook
  •   Don Duet – Global COO, Technology Division, Goldman Sachs
  •   Chris Furst –CIO, Univision Communications
  •   Larry Godec –CIO, First American
  •   Greg Morrison –CIO, Cox Enterprises
  •   Tom Murphy – CIO, University of Pennsylvania
  •   Jim Scholefield, CTO, The Coca-Cola Company
  •   Carol Zierhoffer – CIO, Xerox
  •   Phuong Tram – CIO, DuPont

 

What will you learn?

The conference will provide practical lessons and best practices for deploying TBM within your organization. Join your peers to learn from:

  • Transformational case studies highlighting where CIO's have employed cost transparency and recovery processes (with Apptio) to drive "value" conversations with their business partners;
  • Operational case studies focusing on run-the-business optimization initiatives (such as, cost reduction, App-Rat, DC consolidation and vendor performance) and change-the-business processes (such as, demand management, investment planning and services portfolio management); and
  • Hands on Apptio sessions  learning about how to take advantage of your Apptio investment by seeing our latest innovations around data management, reporting, industry benchmarking and IT planning.

 

How can you sign up?

 

You can register for the conference by clicking here. Space is limited so register now!

We are pleased to announce the next installment in our series of management summaries of the TBM eBook (Technology Business Management: How Innovative Technology Leaders Apply Business Acumen to Drive Value). Written for business technology executives and managers responsible for building or running a technology business office (or TBM program office), chapter two describes how to build the right foundation, from how you define your value proposition to the roles and responsibilities that are necessary for managing your portfolios.

Due to the richness of chapter two, we’ve created two separate management summaries for the single chapter. By reading the first of these two, readers will discover how to:

  • Define a unique value proposition. The TBM Framework is built on a foundation that defines our technology business model, the services we provide, and the roles and responsibilities essential to optimizing value. But to define any of these, we must first define our value proposition. This is essential because the value we promise to deliver drives our technology business model and how we define our services, refines what we should expect from our TBM-related decision making, and determines what constitutes success or failure for our organizations.
  • Deliver services aligned to that value proposition. All of the “appropriate” technology business models covered by the TBM Framework dictate a services-based approach, which begins with carefully defining a portfolio of services. This is important because the services we provide and the way we deliver and support them determine our value to the business, drive our resource and skillset requirements, and dictate our cost structure.
  • Manage our investments as a portfolio. To invest in each of our technologies, services, and projects based on their contribution to business strategy, we must manage them as an investment portfolio. This requires deciding how to invest and how much to invest in each one, which is accomplished by working with business partners and other stakeholders to assess our portfolios, ask the right questions, and ultimately drive investment decisions.

Use the management summary to share these lessons with others in your organization. The summary is useful for the office of the CIO (OCIO) as well as your strategists, service managers, portfolio managers, IT and corporate finance officers, and others who have a stake in the effectiveness of your business management processes. Finally, keep an eye out for our next executive summary, covering the second part of chapter two, which dives deeper into the supply-side and demand-side roles of Technology Business Management.

We’ve gotten great feedback about the eBook, Technology Business Management: How Innovative Technology Leaders Apply Business Acumen to Drive Value, published by the Technology Business Management (TBM) Council. Many people have asked us for a more concise version that they can share with team members and colleagues. As a result, we’ve begun publishing downloadable management summaries for each chapter.

 

The first summary, available here, describes key concepts from chapter one, including the value equation of business technology and the lessons learned by innovative CIOs in adapting to powerful forces like cloud computing, consumerization, and business demand that outpaces supply. Indeed, these are the forces that have given rise to TBM.

 

Written for a diverse group of technology executives and managers, from CIOs and CTOs to service managers and tower owners, chapter one illuminates several important things. First, readers learn that TBM takes a value-based approach, in which the value delivered by a technology or service is framed in terms of:

1)    its total cost, including all retained and soft costs; and

2)    the quality of what we deliver—defined as all the attributes that contribute to the value delivered by it, including functionality, performance, capacity, availability, and security.

 

Second, readers see that, to maximize value, they need a decision-making framework for collaborating with business partners on cost, quality, and business outcomes. This is provided by the TBM Framework, a decision-making methodology that helps technology leaders and their business partners collaborate on optimizing how IT dollars are spent. Relying on transparency in cost, quality, and demand for technology services, the TBM Framework enables key stakeholders to “speak the same language” in determining the tradeoffs needed to optimize run-the-business spending and change-the-business investments.

 

Finally, readers discover the TBM Index, a tool delivered by the TBM Council and Apptio that benchmarks and assesses how technology leaders improve value by applying business acumen to decision making. Following the structure of the TBM Framework, the first-of-its-kind TBM Index employs an interactive survey found in the eBook and through the Council website.

 

In summarizing chapter one, our first management summary provides a high-level overview of TBM and its components. It’s a great tool for helping others get a basic understanding of TBM and the reasons for adopting it in their organizations. We encourage you to download and share this and subsequent summaries with your team and to use them as tools to help articulate your TBM strategy.