What is TBM? A framework for driving value and innovation in IT

TBM definition

The technology business management (TBM) framework helps companies integrate IT into the organization, with the goal of running the IT department like a business. The idea of running IT like a business unit is a recent shift in the corporate world. In the past, IT typically functioned as a stand-alone business unit and was separate from main business goals. Today, technology is the foundation of many companies and nearly every business unit and employee needs access to applications, hardware and internal systems. This has shifted IT to the center of the business, forcing executives to account for IT and technology in decision-making processes.

The framework isn’t designed to be a prescriptive method for businesses to follow. Rather, companies should embrace TBM as a collaborative effort to establish a business management process that supports the entire organization. It’s a process that should grow with the organization, not one that defines or restricts the business.

TBM Council

The Technology Business Management Council is a non-profit organization that works to establish best practices for running IT as a business. As of 2019, the council has 5,800 members consisting of CIOs, CTOs, CFOs and any other IT executive or leader responsible for technology management — 40 percent work in I&O or finance, while 45 percent are CXOs. The council started as a biannual CIO executive summit run by Apptio — the company later founded the TBM Council in 2012.

The TBM Council was established to offer collaboration, standardization and education on technology business management practices. The group consists of CIOs and senior IT executives and membership gets you access to a network of IT professionals, early access to research and content from the Council and an invitation to the annual TBM conference and regional TBM summits. The current TBM Council board of directors consists of executives from companies such as Intuit, Apptio, AIG, Cisco and Micron, among others.  

TBM Index

The TBM Council partnered with McKinsey & Co. to develop the TBM Index, which acts as a standardized benchmark assessment. It’s designed to help organizations evaluate their corporate environment to see what TBM elements they already use, which ones make the biggest impact and which ones the company could adopt to improve TBM.

“The survey assesses a holistic set of capabilities that need to be in place to manage the business of IT. These include your IT operating model, service orientation, organization, tools and management capabilities. The survey also evaluates the financial impact and satisfaction from TBM,” according to the TBM Council.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *