Infrastructure Optimization: ITBM’s Last Mile
Optimization An ITBM Primer
According to ITBM leader Apptio:
“Modern IT leaders use facts to collaborate on the tradeoffs needed to maximize business value. Cost-only conversations become a thing of the past.”
Modern IT leaders:
- Manage CapEx/OpEx, Fixed/Variable, CtB/RtB, Direct/Indirect
- Manage cost and variance for Plan/Build and Run activities
- Manage IT internally with these metrics on a monthly basis
- Communicate IT cost, utilization, and value metrics monthly with key business stakeholders
- Make technology business decisions in near real time
How Do ITBM Tools Work?
Once again, our friends at Apptio explain:
“Corporate financial systems, ERP, BI, spreadsheets, and ITSM software don’t connect the dots between finance, technology, and business value. Modern IT leaders tried to leverage these existing investments and even built their own homegrown solutions with no success. These systems were not purpose-built to manage the business of IT.”
Simply put, ITBM applications are designed to manage IT like a true business function. These software applications are purpose-built to solve the pervasive challenges that exist in merging financial, technology, and operational data to deliver improved analytics, automate key processes, and demonstrate business value.
ITBM applications like Apptio help IT to bridge the gap that exists in many organizations between IT and business when it comes to demonstrating the clear and measurable value of IT. But do these applications provide the complete picture of how cost and value is allocated for IT systems and ALL of their associated assets and resources? Well, almost.