Points of View - Inner
Seven Insights: Benefits of Technology Business Management
Technology Business Management offers accurate, real-time reporting through automation, improves decision making for key IT initiatives, helps executives manage the cost and quality of the services they consume, allocates IT resources to the most relevant business priorities, and transforms IT from a cost-center to a profitability-enabler.
Provide a clear methodology for evaluating and managing IT
Outlining how to manage the performance of IT, TBM reports the budget, cost, and consumption of each IT service so the business can understand exactly which departments drive specific technology demand. TBM offers accurate, real-time reporting through automation.
Implement a framework for running IT as a business
TBM blends financial transparency with details of IT spend and usage to help technology leaders collaborate with their business partners on goals and objectives. TBM records and describes the value of what the business consumes.
Communicate the value of new IT investments to the business
The majority of capital spending worldwide goes to IT, yet most non-technical leaders remain skeptical about the cost-benefit of their IT investments, where they often respond by putting pressure on IT costs. TBM improves decision making for key IT initiatives.
Transform IT into IT-as-a-business-service
Using data analytics to express costs in terms of services, the IT debate shifts from its cost to the financial value it delivers, where TBM translates key metrics into actionable insights. TBM helps executives manage the cost, quality, and quantity of the services they consume.
Enable efficient systems replacement with reasonable balance between costs & benefits
Forcing IT and business executives to account for their impact on IT spend, TBM helps drive cost optimization across the organization using data to prioritize essential value-driven initiatives. TBM assigns sensitivity to protected assets and captures value via cost savings and avoidance.
Benchmark IT resources to improve technology services and high-priority business activities
Metrics for benchmarking, often defined by Key Performance Indicators, help executives focus on IT value by monitoring expenditures, rationalizing portfolios, and optimizing cost and performance. TBM allocates IT resources to the most relevant business priorities.
Combine IT services with business capabilities to drive specific business outcomes
TBM reduces cost without sacrificing critical or necessary levels of service through a collaborative budgeting process that offers insight into financial impact, business value, and desired outcomes. TBM transforms IT from a cost- center to a profitability-enabler.
About the Author
Ron Groenendaal is a Director at Kenny & Company. Ron has twenty years of management consulting experience with Bain & Company, Applied Value, Cost & Capital, and Kenny & Company, including VP and C-Level engagements in leading large complex initiatives to drive accelerated top and bottom line growth at Fortune 500 companies. Ron has led projects in IT Strategy, Product Development and Innovation, Technology Business Management, Risk Optimization, Portfolio Management, Operations, M&A, Post-Merger Integration, Business Intelligence, Strategic Partnerships, Supply Chain, and Vendor Management.
About Kenny & Company
Kenny & Company is a management consulting firm offering Strategy, Operations and Technology services to our clients.
We exist because we love to do the work. After management consulting for 20+ years at some of the largest consulting companies globally, our partners realized that when it comes to consulting, bigger doesn’t always mean better. Instead, we’ve created a place where our ideas and opinions are grounded in experience, analysis and facts, leading to real problem solving and real solutions – a truly collaborative experience with our clients making their business our business.
We focus on getting the work done and prefer to let our work speak for itself. When we do speak, we don’t talk about ourselves, but rather about what we do for our clients. We’re proud of the strong character our entire team brings, the high intensity in which we thrive, and above all, doing great work.
This article was first published at michaelskenny.com on March 13, 2017. The views and opinions expressed in this article are provided by Kenny & Company to provide general business information on a particular topic and do not constitute professional advice with respect to your business.
Seven Insights: Benefits of Technology Business Management by Ron Groenendaal, Kenny & Company is licensed under a Creative Commons Attribution-NoDerivs 3.0 United States License . Kenny & Company has licensed this work under a Creative Commons Attribution-NoDerivs 3.0 United States License.