TBM for the New IT Operating Model

Technology Business Management (TBM):
A New Way to Understand IT

An effective IT operating model is key to successful operations within any business environment. That statement has never been truer than today – any businesses that do not leverage their technology investments to gain financial insights that improve services are behind the curve.

Legacy IT operating models have failed to adapt to the role of IT in a modern enterprise. Technology business management is empowering IT leaders and C-level executives to make data-driven decisions that justify IT spend and cost at the centre of all business operations.

It's Time to Transform your IT Operating Model

Every enterprise worldwide is a technology company. The ever-changing world that we live in demands instantaneous reactions, with business capabilities expected to react in real-time to the needs of the customer.

Digital transformation has made this possible. Not only has the booming wave of technology made communicating and sharing data easier than it has ever been, but it has also allowed targeted technology investments to completely change how we work. Now, digital services are at the heart of all enterprises.

The value that IT teams bring to enterprises is ever-expanding. Whereas business leaders once saw IT as a bottleneck for development, innovation is now directly tied to the success of technological implementation. To manage the business, you need to manage technology investments too.

An IT Operating Model is made up of the following elements necessary to maximise the business strategy:

  • Organisation and Governance
  • People and Skills
  • Performance Management
  • Capabilities, Services and Processes
  • Technology
  • Sourcing

Each of these elements are impacted by the accelerating rate of change in the market.

Technology Business Management: The New Strategy

TBM is a leap forward in how we understand the role of IT. Technology leaders are now recognising the importance of connecting to other disciplines within IT, Finance and across the business, especially around agile and digital transformation. The new IT operating model can’t just account for a growing IT influence. The advent of cloud technology and global digital transformation now places IT at the centre of an organisation’s strategic development team.

TBM changes traditional IT Operating Models with the following principles:

  • Talent focused - Attracts, develops and retains the right people. Builds core capabilities that reflect a Digital DNA.
  • Speed of delivery - Domain driven delivery and operations chain delivers customer focused solutions at speed.
  • Operating for Outcomes - Right size, right products, right delivery chain. Value driven, cost and outcome focused. IT runs as a business.
  • Front to Back Service Providers - Inclusive and engaging across business domain boundaries and silos.
  • Innovation Culture - Move away from a ‘keeping the lights on’ culture.
  • Commercially Minded - IT runs as a business to go beyond simple business alignment.
  • Strategic Business Partner - Taking new technology and ways of working to support business differentiation and drive value.

TBM drives accountability and puts technology leaders in the decision-making hot-seat. Defining tools, processes, data and personnel that are necessary for effective business operations is in the hands of the IT business unit; but how does this new operating model work?

Match Your IT Operating Model to Company Goal

Source: Gartner

IT is a Partner in the Enterprise

In the past, IT has at best been a partner to an enterprise. IT services are employed to facilitate business goals, acting as an artificial limb of an organisation throughout the process. Important, but not truly within the business goals.

IT is now integral and needs full integration to effectively improve business capabilities. IT is the only business unit that touches all other units – whether it is data-driven insights into productivity or providing basic functionality to departments, it is impossible to function without the former artificial limb.

Shifting Patterns Means Shifting Thinking

Source: Gartner

Transparency Across the Enterprise

Why do IT teams need so much money? How can they justify all this spending? Do they need such a large budget?

Before companies fully implement TBM into the culture of the organisation, these are common questions. IT offers support for every business unit within an organisation, but it needs access to funds to do so. For the TBM operating model to work in a digital enterprise, IT objectives must be aligned with business goals.

TBM allows transparency within a company, meaning that CIOs/CTOs can make informed decisions about where IT needs to go to bring innovation to the organisation.

Match Your IT Operating Model to Company Goal

Source: Gartner

Welcoming The Cloud

The cloud is central to effectively adopting a TBM IT operating model, but it is an innovation that comes with many aspects that concern C-level executives. The financial implications of moving into the cloud can be a bitter pill to swallow, but the expansion of resources and overall costs of abandoning on-premises technology can lead to great successes.

TBM needs a cloud to work within because the operating model needs space to expand and create new value. This is when TBM will start to reach the apex of development success – quickly creating new development options allows for faster innovation than was ever possible with on-premises restrictions in play. The potentially high costs of using the cloud can lead to high profits thanks to the opportunities it provides.

How a TBM Operating Model Will Improve Your Business

TBM is innovating how we see IT as a part of a business. Digital services are central to all large-scale enterprises and organizations must align business goals with the needs of IT. The multiple benefits of successful TBM implementation will allow data-driven decision-making throughout your enterprise that will allow agile development of products and services for your customers.

The Value Optimising IT Operating Model

Source: Gartner

ClearCost provide robust software solutions paired with expertise in the field to create successful TBM frameworks for our customers. Our goals are to make TBM implementation simple, to allow IT spending to be cost-effective, and to help you to bring value and innovation to your own customers.

We deliver great outcomes for our clients.

Read below how companies in Private Enterprise, Public and Government have benefited from partnering with ClearCost, enabling them to manage their IT function as a business and deliver value for their whole organisation.

goodstart-case-study

Goodstart ICT utilises ClearCost to boost meaningful conversations with the wider business

AGL optimises existing IT portfolio for performance, value and risk

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QLD Government Dept. of Agriculture & Fisheries Delivers Clarity to Partner Agencies

Playbook

Shaping Business Demand