In an environment of flat or declining budgets, technology leaders must optimize IT spending and reinvest in innovation to maximize the digital opportunity for growth.
Adopting TBM allows organizations to organize IT spend according to an accepted taxonomy that maps to the general ledger, enabling leaders to understand how IT brings value to their organization and make investments to improve business outcomes. Wherever your organization is on the TBM maturity scale, applying agile principles can help maximize the results from TBM and drive speed to value. An agile TBM approach requires a mindset shift from project focus to continuous progress. This approach integrates TBM and IT Service Management (ITSM) to provide technology leaders with the tools and flexibility they need to manage the ‘Business of IT” effectively. Using this approach, leaders can develop rapid prototypes to make more informed decisions, and constantly gauge the levers they can pull to drive transformation and business growth through IT investment. Organizations must have a strong alignment between business, IT and finance—and most importantly a focus on iteration and continuous improvement—to make the most of an agile TBM approach and transform quickly enough to take advantage of the digital opportunity to provide value, delight their customers, and drive growth.
Agile approach drives speed to value
84% of senior executives agree that organizational agility is essential to achieve digital transformation. (Forbes)
17% of IT projects have so many cost and schedule overruns they can threaten the existence of the company. (McKinsey)
65% of organizations that implemented agile have seen a greater alignment between business and IT. (CollabNet VersionOne)
Increased business value
Organizations maximize business value by realizing the full potential of technology products and services they purchase. An agile TBM approach helps technology leaders identify ways to increase the business value from initiatives through feedback mechanisms that trigger continuous improvement cycles. Mapping IT spend to TBM creates transparency and provides leaders with insights into the results of the business change initiatives to drive innovation and growth. Through this process, leaders can better understand and improve their data to make decisions that have the greatest business value, and improve organizational efficiency and customer satisfaction.
Better data, better decisions
Technology leaders cannot afford to let incomplete data hold them back. According to Gartner
, poor data quality cost companies an average of $15 million in 2017. It is critical for technology leaders to use frameworks that provide transparency into their financial and operational data, and gain insights that result in better business decisions. No matter where your organization is on the maturity scale, an agile TBM approach allows you to focus on rapid, continuous data quality improvement and drive evidence-based decision making through more consistent and granular data.
More efficient operations
Agile TBM allows technology leaders to continuously monitor the value of their current technology and make decisions on when to stop maintaining a system or tool. Achieving operational excellence means not only maximizing the business value of your investments, but also understanding the legacy systems that need to be retired. Harvard Business Review
found that 72% of CIOs acknowledged that balancing business innovation and operational excellence is an ongoing challenge. Using an agile TBM approach allows for ongoing optimization of resources that enable organizations to operate efficiently and reinvest in innovative approaches to solve new problems.
Improved customer satisfaction
Customers expect organizations to keep pace with digital change and develop products and services that make their lives easier. According to the State of the Connected Customer survey
, 76% of consumers expect companies to understand their needs and expectations. An agile TBM approach helps technology leaders continuously quantify the value of services and their contribution to business outcomes, make portfolio decisions to manage demand for services, and coordinate resources and manage business partners to respond to customer needs.
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