3. 3
Background
Gartner Trends
10 Critical Tech Trends For The
Next Five Years
1. Organizational entrenchment
and disruption
2. Software-defined networks
3. Bigger data and storage
4. Hybrid cloud services
5. Client and server architectures
6. Internet of things
7. IT appliance madness
8. Operational complexity
9. Virtual data centers
10. IT demand
Top 10 Strategic Technology
Trends For 2013
1. Mobile device battles
2. Mobile applications & HTML 5
3. Personal Cloud
4. Internet of Things
5. Hybrid IT and Cloud Computing
6. Strategic Big Data
7. Actionable Analytics
8. Mainstream In-Memory
Computing
9. Integrated Ecosystems
10. Enterprise App Stores
4. 6
Background
Source: “Building the IT Brand: Impacting the Front Office and Beyond”, Meehan & McMullen, Gartner Executive Programs, October 2011
…
Source: 37 Signals, Feb., 2011
Source: ComputerWeekly.com, August 2012
6. 8
Background
Source: “CIO Business Vision”, Info~Tech Research Group, Jun 2013
1. Understand Business Satisfaction with
the IT Satisfaction Scorecard
2. Demonstrate Business Demand with
the IT Capacity Scorecard
3. Manage Business Stakeholders
with the Stakeholder Satisfaction Scorecard
7. 10
Technology Business Management
Definition
A practical, applied discipline for maximizing the value of the IT services
investment portfolio by enabling technology leaders and their business
partners to collaborate on business aligned decisions.
Relying on transparency, TBM defines a foundation for managing supply
and demand by enabling financial and performance trade-offs needed to
optimize run-the-business spending and improve change-the-business
investments.
Focused On Running IT As A Business
8. 11
The TBM Council
COLLABORATE
Create a network of technology executives who are
passionate about the Council’s mandate and will openly
share their points of view and key learnings
EDUCATE
Synthesize, publish and promote a cross-industry
framework and practical tools used to establish TBM as
a professional management discipline
BENCHMARK
Create openly available benchmarks for technology
leaders to assess their adoption of the TBM framework
and work products
TBM Council Mission:
9. 12
“To serve equally our members and our profession by synthesizing TBM best practices into a
professional and recognized discipline for technology leaders.”
TBM Framework TBM Summits
The TBM Council
CIOs Establishing TBM as Standard
TBM Book
TBM Framework
TBM Index
TBM Summits
10. 13
TBM Framework
Developed by
TBM Council
board and
principal
members
Emphasizes
optimization of
investment
portfolio (Run
the Business vs.
Change the
Bussiness)
11. 14
TBM Disciplines
3
How can we use
transparency to alter
behavior and drive cost
and quality trade-off
decisions with our
business partners?
3
1
What adjustments can we make to our
organization to more effectively manage
the supply and demand of our services?
1
2
How can we get meaningful
perspectives of our technology costs,
investments, capacity and performance?
2
4
How can we
confidently translate
business expectations into
an accurate technology
plan, in turn safely
reducing excess capacity?
4
How do I create and sustain a performance-driven culture that
continuously improves value delivery.
5
5
Find the TBM Index at http://bit.ly/TBMindex
12. 15
TBM Disciplines
1
How can we
continuously improve the
unit cost of our
technologies and services
while keeping cost and
quality in proper balance?
1
2
How can we better focus our time and resources
on the services, applications, technologies and
vendors that drive the most value?
2
3
How can my business partners and I
be sure that we’re investing enough in
the right projects and services?
3
4
How can we enable our
business to “pivot” more
quickly to differentiate
offerings, exploit market-
driven innovations, and
capitalize on new
opportunities?
4
OVERARCHING GOAL: Optimize run-the-business costs and better
fund change-the-business investments.
5
5
Find the TBM Index at http://bit.ly/TBMindex
13. 16
TBM Index
Number of Responses Questions
Weighted Scores
Level 1 Level 2 Level 3
Foundation 14 4.3 8.6 10.0
Understand / Benchmark 6 5.7 15.7 20.0
Transparency 3 4.0 14.7 20.0
Planning 7 8.9 17.1 20.0
Optimize Cost 6 .8 4.6 5.0
Rationalize Portfolios 5 1.8 3.8 5.0
Innovate 4 1.3 4.4 5.0
Transform 4 .8 3.1 5.0
Culture 4 3.5 9.5 10.0
Total 53 <31.2 <81.6 >=81.6%
Based on the scoring model, organizations can
be classified as Level I, II or III maturity:
Level I: 0-31.1%
Organizations with some services
defined/published, GL-based cost
management, basic allocation of costs, annual
baseline budgeting, etc.
Level II: 31.2%-81.5%
Those with some higher-level services
defined/published, mostly GL-based cost
management, more advanced allocation of
costs, annual budgeting with quarterly or
monthly forecasting and reviews, etc.
Level III: 81.6%-100%
Those with complete portfolio of services
defined/published, more mature costing of
services, consumption-based allocation to
business partners, demand-based budgeting,
service choices, etc.
Scoring Approach
Scores are captured by industry
16. 19
Another Way of Looking at TBM
Engineering &
Operations
Deliver and support
products and services
on-time and on-quality
Sales / Account
(Business
Relationship)
Management
Work with customers to
understand their needs, position
the right products/services and
ensure their success
Marketing
(Office of the CIO)
Understand your market,
define your unique value
proposition and strategy
Product
Management
(Service Owners)
Define and manage
products/services to
profitably satisfy
customer needs
Finance
Enable effective resource planning
and governance to meet business
goals and objectives
17. 20
Primary Driver behind TBM
Nine times in
ten, CIOs tell
us their
biggest
reason for
adopting TBM
is the need to
free up
resources for
innovation.
18. 21
Support the
Business
CEO’s Hierarchy of IT Needs
Does Not Crash
Does Not Embarrass
Does Not Cost Much
Keeps Business Happy
Extends Into New Businesses
Creates New Industry Define New Frontier
Expand the
Business
Get Fundamentals
Right
Increases Revenue
Optimize Business
Processes
Decreases Costs
Increases Efficiency
CIO’s
Innovation
Sweet Spot
Source: Innovation Strategy & Mandate Workshop Overview, Info~Tech Research Group, Jun 2013
The CIO and Innovation
22. 25
Chargeback or Show-back: Allocation Methods
Basic Allocation methods:
Subscription
Allocation
Usage
Source: “Key Concepts in IT Financial Management: Funding, Costing, Pricing and Chargeback”, Gartner April 2012
Transparency
23. 26
Transparency
Chargeback or Show-back: Strengths & Weaknesses
Source: “Key Concepts in IT Financial Management: Funding, Costing, Pricing and Chargeback”, Gartner April 2012
