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Technology Business Management (TBM) and the Evangelize Performance Framework: A Powerful Partnership

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TBM is a value management approach that helps organisations better align their technology investments with business goals. It focuses on transparency, providing clear insights into IT costs, consumption, and performance.

Through the TBM taxonomy, organisations can establish a shared language for communicating about technology and its business impact. This data-driven approach empowers stakeholders to understand the total cost of ownership of technology services, facilitating better budgeting and investment decisions.

Furthermore, TBM enables the creation of a "bill of IT", allowing organisations to communicate the cost of IT services to their business units in a transparent and understandable way.

By highlighting areas where cost and value are misaligned, TBM helps organisations identify opportunities for optimisation, such as rationalising application portfolios, leveraging cloud services effectively, and managing vendor relationships strategically.

TBM Use Cases

Use Case: Driving Strategic Value through TBM's Three Views

How Evangelize Consulting Utilises the Three Views of TBM to Drive Business Transformation

Navigating IT investments can be challenging, especially ensuring that technology aligns with your strategic business goals while demonstrating tangible value to stakeholders. At Evangelize Consulting, we help organisations make sense of their technology investments by leveraging the Technology Business Management (TBM) framework, explicitly utilising its powerful three views: the Finance, IT, and Business View. Below is a real-world use case showcasing how these three views provide unparalleled insight and drive transformation.

Client Scenario:
A large-scale retail organisation faced significant challenges, including poorly documented IT expenditures, inconsistent resource allocation, and misalignment between IT efforts and business objectives. Evangelise Consulting engaged with this organisation to streamline IT investments, align them with strategic goals, and more transparently demonstrate IT's value.

1. Finance View: Establishing Cost Transparency and Accountability

The Finance view was the foundational step for creating a clear and unified understanding of IT expenditure. We consolidated IT spending data across different financial sources, including the general ledger and other economic systems, into standardised cost pools like Hardware, Software, Labour, and Telecom Services.

Outcome: By establishing standardised cost pools and categorising all IT costs accurately, the company gained significant visibility into their financial commitments. This helped distinguish between operating (OpEx) and capital expenditures (CapEx), enabling more strategic budget allocation. Financial leaders used these insights to eliminate redundancy, improve cost control, and create more accurate forecasts, paving the way for significant savings.

2. IT View: Evaluating Cost Efficiency and Benchmarking Against Industry Standards

Once financial transparency was established, we used the IT view to break down technology spending into towers—such as Data Centres, Networks, Compute, and Storage—and assessed the efficiency of each.

We conducted detailed benchmarking exercises to compare the company’s unit costs (e.g., per server or terabyte of storage) against industry averages. This revealed opportunities to improve cost efficiency, such as reducing data centre expenditures and migrating certain components to the cloud to enhance scalability.

Outcome: Through cost-efficiency evaluation and strategic technology upgrades, the company reduced infrastructure costs by 20% over the next 12 months. The IT view's data-driven insights also gave IT leaders the information they needed to make informed decisions on infrastructure investments, cloud migration, and vendor negotiations.

3. Business View: Aligning IT Investments with Business Objectives

The final step was implementing the Business view to link IT costs directly to business value. We mapped IT investments to specific business units, customer segments, and business capabilities. This exercise highlighted that a considerable portion of IT spending was concentrated on supporting legacy systems that had minimal impact on modern business needs, such as digital channels and customer engagement.

By redirecting investments towards initiatives that supported strategic objectives—like expanding e-commerce capabilities and enhancing the customer experience platform—the company maximised its IT spending's impact on business growth.

Outcome: With IT investments now closely aligned with business goals, the retail company witnessed a 15% increase in e-commerce sales and significantly improved customer satisfaction metrics. The Business view empowered business leaders to understand IT's value proposition, engage in productive conversations about technology budgets, and make better decisions about IT priorities.

Summary of Results

By utilising the three views of the TBM taxonomy, Evangelize Consulting helped the retail organisation achieve the following:

Enhanced Cost Transparency: The Finance view provided detailed visibility into IT spending, enabling the company to manage budgets effectively and eliminate unnecessary costs.

Operational Efficiency: The IT view allowed the organisation to benchmark and optimise technology spending, leading to a 20% reduction in infrastructure costs.

Strategic Business Alignment: The Business view facilitated a closer alignment between IT and business objectives, resulting in a 15% growth in e-commerce sales and improved customer satisfaction.

Conclusion

Through the three views of the TBM taxonomy—finance, IT, and Business—Evangelize Consulting enabled a large retail organisation to transform its approach to IT investments. By fostering transparency, improving efficiency, and ensuring IT investments were directly aligned with strategic business goals, IT was turned from a cost centre into a critical growth enabler. With its robust framework and distinct views, this use case highlights how TBM can help organisations make better-informed decisions, increase ROI, and drive business success.

The Evangelize Performance Framework (EPF), with its five stages—review, Assess, Design, Engage, and Orchestrate—provides a comprehensive approach to digital transformation.

With its emphasis on Business Model Innovation (BMI), TBM complements the EPF at every stage. During the review phase, BMI supports analysing current business models to ensure they align with market conditions and organisational goals.

In the assessment phase, BMI helps organisations evaluate their capabilities, customer needs, and market opportunities.

In the Design and Engagement stages, BMI plays a significant role in developing innovative solutions and driving their successful implementation.

By integrating TBM principles within the EPF, organisations can achieve a holistic approach to digital transformation. This ensures that technology investments are cost-effective and drive business growth and innovation.