Unlocking IT Value and How TBM Transforms Costs into Strategic Growth

Business, Technology & Finance

What This Post Will Cover

In this post, we’ll explore why Technology Business Management (TBM) is a transformative approach for aligning IT investments with business outcomes. Specifically, we’ll discuss.

• The rising challenges of managing skyrocketing technology costs and why traditional cost optimisation efforts often fall short of expectations.

• How TBM provides a structured framework to address the critical question. “Why does IT cost so much?” and uncover whether those costs deliver real value.

• The importance of dismantling silos and fostering collaboration across Technology, Finance, and Business Management to maximise the impact of TBM.

• Foundational insights on implementing TBM effectively to connect IT spending with business priorities, enabling better decision making and measurable outcomes.

By the end, you’ll gain a clear understanding of how TBM can empower your organisation to move beyond simple cost management and unlock its potential to drive strategic value and growth.

In a world where technology spend is skyrocketing expected to surpass $5 trillion in 2024 it’s clear that the stakes have never been higher for businesses to deliver value from their IT investments. Yet, challenges abound, 81% of Boards haven’t advanced their digital transformation goals, and most cost optimisation efforts fall short by over 50%. The message is clear, throwing money at technology isn’t enough. To succeed, technology leaders need a framework that moves beyond costs to demonstrate how technology fuels value, drives growth, and creates competitive advantages. That’s where Technology Business Management (TBM) comes in. It’s not just a discipline, it’s a game changer for aligning IT investments with business outcomes and turning challenges into opportunities. (Source: Gartner, 2024)

For those of us with extensive experience in IT, the question “Why does IT cost so much?” is one we’ve encountered countless times. At senior levels, answering this question accurately becomes even more challenging. While it’s straightforward to attribute costs to specific items like a piece of hardware or a satellite link, the complexity increases exponentially when budgets extend into the millions. This is where Technology Business Management (TBM) comes into play. TBM is a structured discipline designed to address these cost related questions, not only explaining what IT costs but, more importantly, why and whether it delivers value. When applied effectively, TBM provides deep insights into IT cost drivers and equips decision makers with the data needed to align spending with value and efficiency.

Sounds simple, right? In practice, it’s not as straightforward as it seems. However, with the right knowledge and approach, it’s absolutely achievable. One of the key challenges in delivering value through TBM lies in recognising that it goes beyond just understanding technology, business, or management in isolation. To truly unlock its potential, you need a clear awareness of your organisation’s position, strategy, and goals across multiple areas. It’s about connecting the dots between technology, financials, and business priorities to drive meaningful results.

For those with extensive IT experience, it’s no secret that silos are a persistent challenge, even if we rarely admit it. Delivering value through TBM requires dismantling these silos and fostering collaboration across Technology, Finance, and Business Management. Insights from countless TBM implementations reveal a critical truth, while one domain, such as Finance or Technology, can drive some progress on its own, achieving meaningful, sustainable outcomes without full business engagement, especially at senior levels is significantly more difficult. To truly succeed, objectives must be clearly defined at the outset, ensuring the appropriate level of involvement from all three functions. Partial engagement, such as leaving out the business perspective or marginalising Finance, limits the quality of the results. For TBM to reach its full potential, it’s essential to build a cohesive partnership where all domains contribute their expertise, driving outcomes that align technology investments with business goals and delivering measurable value.

Final Thoughts

As businesses navigate the challenges of rising technology costs and increasing demands for value, Technology Business Management (TBM) offers a proven framework to align IT investments with strategic business goals. It’s not just about managing costs, it’s about making informed, data-driven decisions that drive growth, efficiency, and competitive advantage.

By embracing TBM, you can break down silos, foster collaboration across critical functions, and unlock the full potential of your technology investments. Whether you’re just starting your TBM journey or refining an existing approach, remember that success lies in a shared vision, clear objectives, and consistent engagement from Technology, Finance, and Business Management.

TBM isn’t just a tool, it’s a mindset shift, a commitment to connecting the “why” behind IT spending with the “how” of business success.