Bridging the Value Divide between IT and the Business

CIO Magazine's 2015 State of the CIO research revealed that a whopping 54% of business executives viewed the IT group as on obstacle to their mission. This highlights a fundamental issue: Many CIOs and their business partners often fail to collaborate on tough decisions, resulting in a “we” vs. “they” mentality and impeding value. In our work, we have discovered four primary impediments to collaboration and trust: unclear value, uncontrolled cost, disconnected planning, and lack of agility.

Technology Business Management (TBM) fosters collaboration and trust by providing a data-driven framework for measuring, managing and communicating the budget, cost, consumption, and value of IT. According to January 2015 report by Forrester, TBM provides the following, crucial benefits:

  • Overcome mutual mistrust and aim for partnership
  • Understand and communicate budget issues
  • Highlight the state and age of technology
  • Jointly decide on sustainable investments
  • Shift I&O into the role of a service broker

TBM is both pragmatic and transformational. Its disciplines, such as cost transparency, benchmarking and planning, have helped CIOs optimize costs, rationalize application portfolios, accelerate service management, and execute cloud-first strategies. But most importantly, TBM has helped hundreds of CIOs improve and communicate value to their business partners.

To learn more about TBM, discover the TBM Framework or read the first three chapters of the TBM book.

"The leading models and frameworks for governing IT are IT-driven. They have "IT" in their names. This really is a big problem. Like never before, we need to be an integral part of our business, not merely a service provider to it. This means we need to go beyond a services orientation to a business orientation. To me, Technology Business Management is all about tearing down the walls between me and the business."
Tom Murphy
University of Pennsylvania

Forrester Report:

Apply Technology Business Management to Shift from Tech Cost to a Tech Value Conversation
Download Now


Unclear Value

  • BUs don't see value in IT costs.
  • BUs consume IT like it's free.
  • Unclear levers for changing costs.
  • Unfair allocations of costs to BUs.

Uncontrolled Costs

  • Run costs crowd out innovation.
  • Services at risk from top-down cuts.
  • IT can't defend investments.
  • Continued build-up of tech debt.

Inefficient Planning

  • Long budget and forecast cycles.
  • Poor accountability and accuracy.
  • IT cannot defend budgets.
  • Impact of budget on BUs is unclear.

Lack of Agility

  • Ungoverned shadow IT.
  • Can't compare to cloud.
  • Service owners are not empowered.
  • BUs have few choices of cost/quality.
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