It is not difficult to become overwhelmed by the numerous types of IT financial and operational analyses an organization can perform. To help avoid unnecessary and costly analytical exercises, companies need to focus on the “So what?” of their data metrics initiatives, both before and after they perform them.
An enterprise that integrates data analysis all along the way to IT transformation can build a framework for automating analytics, data and processes to better manage IT cost, quality and usage. The following graphic illustrates how data analytics can be used as a foundation for improving clarity, strategy and performance in an IT transformation.
Technology Business Management (TBM) is the revolutionary discipline for putting data analytics to work to gain transparency into the true cost of IT, align IT to the business and improve performance. The TBM Council describes TBM as “a prescriptive, applied set of business processes, roles and metrics for optimizing the supply and demand of business technology services. TBM enables business technology leaders to maximize the value from every dollar invested in IT. TBM has been defined, and continues to evolve, based on the input and collaboration among innovative business technology leaders who are focused on running IT as a business.”
When determining your path along the TBM journey or evaluating your data in relationship to peers and the IT marketplace, it is helpful to keep in mind the potential for positive change. In an analysis and benchmark of mid-range servers in infrastructure tower output, one company found that the Unix environment was operating at a 15 percent higher cost than comparable companies and that it had an annual cost savings opportunity of $2.1 million in services and $0.67 million in assets.
When enterprises uncover this kind of data, they can drive financial and organizational value within the context of a broader technology management program and gain, among other things:
- Cost savings by limiting providers where possible to achieve higher standardization, lower complexity and lower unit pricing; and
- Business change by consolidating servers and storage into regional data centers to drive higher utilization targets, simplify management processes and reduce services costs.
ISG can help you answer the “so what?” By collecting, configuring and visualizing data in TBM software, ISG can provide deep insights on IT optimization areas, including comparison of revenue and investments in applications, portfolio rationalization, server consolidation, and consumption management.
ISG leverages one of the industry’s most extensive databases addressing price, cost and services for information technology outsourcing (ITO) and business process outsourcing (BPO) to help enterprises focus on performance management and target operating modeling, and to drive clarity, strategy and performance within a broader TBM framework.
Interested in learning more about data analytics and benchmarking as it relates to Technology Business Management? Contact me to join the conversation.About the author
Alex-Paul works closely with enterprise leaders, IT finance managers and IT business unit leaders to help implement the discipline of Technology Business Management (TBM) into their organizations and optimize their enterprise IT. He advises both commercial and public sector organizations on the adoption of TBM programs, designs fact-based analytical strategies and supports broader IT transformation initiatives. His development of a strategic TBM multi-dimensional framework addressing people, process, data, analytics, technology and strategy is part of ISG’s industry-leading set of market best practices and methodologies. His thought leadership has been featured in CIO Review, MiddleMarket Executive and the TBM Council’s book The Four Value Conversations CIOs Must Have with Their Businesses.