An ISG Technology Business Management (TBM) team helps a multibillion-dollar managed-care organization assess a TBM model and processes for IT cost transparency, including establishing a TBM Office (TBMO) and developing a 5-year roadmap and supporting governance.
A major U.S. healthcare consortium wanted to build on its existing efforts to replace a manual, labor-intensive process for allocating and charging IT costs back to its regional business units on a monthly basis. The company had already brought in Apptio, a popular TBM Software-as-a Service (SaaS) solution. Then, about a year prior to engaging ISG, the company started a new Cost Transparency program on a separate instance of Apptio.
The program aimed to evolve its process into a true service-based, price-times-quantity (PxQ) model that could be used for budgeting, chargebacks, driving IT cost/efficiency insights and employee-performance management. Given the size of the IT budget, expected program duration and organizational challenges, the company requested ISG’s support to validate its TBM approach and establish a TBMO.
Imagining IT Differently
ISG reviewed and recommended best-practice-driven changes for the new Apptio TBM Unified Model® (ATUM®) and for data load and management processes. ISG also provided TBM use cases and an assessment framework to help the company identify other ways to leverage TBM capabilities.
ISG actively participated in design, status and steering committee meetings, bringing deep TBM and organizational change management (OCM) experience to key project structure, design and long-term strategy decisions. We helped the team and leadership understand the criticality of OCM to long-term program success. ISG worked closely to comprehend the team’s organizational challenges to date and then proposed a TBMO structure and supporting governance processes.
Future Made Possible
The company’s leadership was able to make key structural changes to the project team based on ISG’s recommendations to improve clarity of roles and responsibilities.
A series of leadership-alignment sessions hosted by ISG ensured that the company’s leadership, team, IT, finance, and the legacy and future TBM team members would work more effectively as an integrated team.
The company received a consolidation of multiple presentations and points of view into cohesive vision, mission, goals and objectives statements.
It also gained a consolidated five-year roadmap with identified key milestones/activities and help for its team in validating the feasibility and risks of long-term TBM goals and objectives.