Driving Value with Technology Business Management

Data Streams to Decision Streams The TBM Approach

Unlocking the Value of IT with TBM

As someone who has been a longtime advocate for Technology Business Management (TBM), I’m excited to share insights on why this methodology is a game changer for organisations. In fact, I was the driving force behind introducing TBM into Rio Tinto, a move that's started with a simple discovery exercise around trying to find a suitable service taxonomy to one that transformed how we approached IT cost management and value delivery.

TBM is more than just a framework for managing IT expenses. It’s a powerful discipline that aligns IT investments with business outcomes, providing unparalleled transparency into costs, consumption, and value. At its core, TBM helps organisations make informed decisions, optimise spending, and drive innovation while maintaining accountability.

The Value of TBM

Transparency Drives Better Decisions

One of the foundational benefits of TBM is the clarity it brings to IT costs. Much like the example of Worley Parsons, where TBM uncovered millions in cost savings, the framework allows organisations to answer critical questions. What are we spending? Where are we spending it? Who is consuming our resources? By creating a single source of truth, TBM eliminates guesswork and enables data-driven decisions.

Operational Efficiency and Cost Optimisation

When organisations understand their IT spend, they can optimise resource allocation. For instance, tracking underutilised software licenses or unnecessary hardware can uncover hidden savings. At Worley Parsons, simply monitoring end-user devices led to a $2 million reduction in costs.

Improved Business Outcomes

TBM isn’t just about cutting costs; it’s about aligning IT with business objectives. By connecting costs to specific business units or projects, organisations can evaluate the true ROI of their technology investments. Whether it’s supporting a billion dollar project or enabling agile decision making, TBM ensures IT contributes directly to business success.

Enhanced Collaboration Between IT and Business

With TBM, the conversation shifts from IT being a cost centre to IT as a value partner. The transparency and accountability foster collaboration, enabling business leaders to influence IT consumption while IT teams gain a better understanding of business priorities.

Why Watch This Space?

This post is just the beginning. Over the coming weeks/months, I’ll delve deeper into TBM, exploring its principles, practical implementation strategies, and how to overcome common challenges. From selecting the right tools to engaging stakeholders effectively, I’ll share actionable insights to help you on your TBM journey.

Whether you’re looking to introduce TBM into your organisation or optimise an existing framework, my upcoming posts will provide the guidance you need to succeed.

Stay tuned as we explore how TBM can revolutionise IT cost management and value delivery.