Until now, we’ve covered the Technology Business Management framework and taxonomy. It’s time to get practical. How do these translate into a Technology Business Management model? And maybe even more importantly: what makes a good Technology Business Management model?
What does the Technology Business Management model do?
A Technology Business Management model connects the business and IT. By continuously improving this connection, the integration of IT within the business becomes almost seamless. When done right, you allow the output of IT models to become the input to business models. Likewise, changes in the business models will automatically result in changes in the IT models.
In order to do this correctly, a Technology Business Management model requires a data-driven method for the allocation and mapping of resource consumption, which powers value-focused conversations with metrics, reports, and analytics.
What makes a good Technology Business Management model?
So what does a good Technology Business Management model need? In short:
- Multiple data sources
- Trustworthy data
It won’t surprise you: they go hand in hand.
Multiple data sources
To build a sound TBM cost model, you need to access various data sources. Like every other cost model, this model needs to be fed by a financial accounting system (general ledger) for cost and funding information. Typically for a Technology Business Management model, additional contract and contractor information is provided by procurement systems. Other important data sources include the HR system (for FTEs), operational and IT management systems, and data sources for client’s product and service consumption.
Trustworthy data
Cost allocation is an integral part of the Technology Business Management model. Visibility and trust in the fully-loaded cost and quality of IT services requires a defensible and transparent allocation of IT costs through the Technology Business Management model. When data quality comes into question, stakeholders doubt the output.
Creating a seamless connection between the business and IT with the Technology Business Management model
When you have access to multiple complete and trustworthy data sources, you’ll be able to correctly allocate IT costs and build toward the seamless integration of the business and IT. In time, this will allow both parties to look at innovation and investing possibilities through a common lens.
In this blog, we’ve covered the Technology Business Management model. We’ve written 3 more blogs on Technology Business Management; you can find them here:
