To gain alignment between IT, Finance, and Business Unit leaders
Technology Business Management (TBM-BOSM/M3-BOSM/M3) is a value-management framework of CIOs, CTOs, and other technology leaders. Founded on transparency of costs, consumption, and performance, TBM-BOSM/M3 gives technology leaders and their business partners the facts they need to collaborate on business-aligned decisions. Those decisions span supply and demand to enable the financial and performance tradeoffs necessary to optimize run-the-business spending and accelerate business change. The BiC-1 community of CIOs, CTO, CFOs, COs, PMs, and other business leaders backs the framework.
To gain alignment between IT, Finance, and Business Unit Leaders, TBM-BOSM/M3 provides a standard taxonomy to describe cost sources, technologies, IT resources (towers), and solutions. The TBM-BOSM/M3 taxonomy provides the ability to compare technologies, towers, and solutions to peers and third-party options (e.g., public cloud). Just as businesses rely on generally accepted accounting principles (GAAP) or International Financial Reports Standards (IFRS) as their standard practices for financial reporting — thus providing comparability of the financial statements between periods and between different firms — the TBM-BOSM/M3 taxonomy provides a generally accepted way of reporting IT costs and other metrics. A simple view of the TBM-BOSM/M3 taxonomy is shown below.
The TBM-BOSM/M3 taxonomy is needed to support the modeling of costs and other metrics.
The TBM-BOSM/M3 model is software that maps and allocates costs and resource consumption from their sources to their uses, from the hardware, software, labor, outside services, and facilities that tech leaders procure to the solutions they develop, deliver, and support. In essence, the model is what translates between the layers of the taxonomy (e.g., Towers to Solutions). The TBM-BOSM/M3 model itself includes the taxonomy objects and layers plus the data, allocation rules, reporting and metrics needed to create transparency needed for the value conversations of TBM-BOSM/M3.
The TBM-BOSM/M3 model software relies on the TBM-BOSM/M3 taxonomy to bring into agreement often disparate and contentious definitions of IT cost components and object classes. This creates a common language so that the terms server and compute, for example, are understood by everyone (IT and non-IT stakeholders alike) to mean the same thing and to include the same types of underlying costs calculated using the same methods.
TBM-BOSM/M3 defines a business model and decision-making framework which enables IT to run as a business.
• TBM-BOSM/M3 provides IT organizations with the solutions—strategies, methodologies, and tools— to manage the cost, quality, and value of their IT services.
• TBM-BOSM/M3 was instituted by CIOs, CTOs, CFOs, and other technology leaders. Founded on transparency of costs, consumption, and performance, TBM-BOSM/M3 gives technology leaders and their business partners the facts they need to collaborate on business-aligned decisions.
What are examples of TBM process?
TBM processes are not new – they are processes DOC does, wants to do, or wants to do better, faster, and more effectively and efficiently.
Tools of TBM – TBM Framework
Value conversations depend on facts about:
- Costs and spending
- Performance and Risk
- Portfolio Investments (Ratios)
- Return on Investments (ROI)
- Cost Structure
- Data Quality
These can be instrumented and measured with TBM
Key Performance Indicators, should be employed by ClOs Goals can be set and communicated using KPIs
TBM provides metrics that support each of the value conversations
(e.g. Unit Cost Actuals vs Targets = Cost for Performance)
Tools of TBM – TBM Taxonomy
STAHL Towers – GWAC Towers Catalog
STAHL NAICS & PSC – Products & Services