Technology Business Management Conference 2014. Mark Jones's Pecha Kucha deck on Communicating the Value of IT with a Standard Model

1. Communicating the
Value of IT with a
Standard Model

2. Accounts
Cost
Centers
BUs
Services
Apps
IT
Towers
FINANCE IT
Projects
Teams
Channels
Customers
BUSINESS
Mfg
General Ledger
Profitability
Products
R&D
The Problem

3. Standards Define A Profession…
No Standard
for
IT’s Value?
But They’re Difficult to Create

4. Creating the Industry Standard
2007
TBM Council writes
eBook
to educate other CIOs
2010
2011
2012
Columbia University
joins TBM Council as
academic advisor
2013
TODAY
TBM Summit
gives rise to
TBM
Council
non-profit
In 2007,
6 CIOs start advisory
council for Apptio
100 leading IT thinkers
define TBM
Membership at
1,250+
The WSJ
starts a series of op-eds

5. The Business Information Model for Technology
What to Measure How to Measure Data Required
Taxonomy
Standard management
categories for IT
Model
Standard costing rules
to map and apportion GL costs
to IT categories
Data
Source data elements, formats,
and relationships
needed by Model
TBM Unified ModelTM (ATUMTM)

6. BUSINESS
IT
FINANCE
• Investment per BU?
• Cost of App per BU?
• What drives app costs?
• Project vs Run Costs?
• App spending levers?
• What drives run costs?
• What are unit costs?
• What do we spend on?
• Where do we spend?
• What drives variances?

7. Customer Marketing Sales
Service
Tier 1 Storage
Internal Labor
External Labor
Software
Hardware
Facilities/Overhead
GL Journal Entry: Wages
Routed by: Account Code, Cost Center
& Organization Structure
Data sources:
• Chart of Accounts
• List of Cost Centers
• Active Directory
Siebel
Routed by: Storage to App Relationship
Weighted by: Reserved storage size
Data sources:
• CMDB
• Asset DB
Mfg
SAP Automation
Routed by: BU consumption
Weighted by: Number of logins
Data sources:
• CMDB or Service Catalog
• Log Monitoring Tool
3
2
1

8. Think of ATUM as an accelerator, not an inhibitor
or constraint.
Optional: Use as much or little as
appropriate
Extensible: Adapt it to your unique
business requirements

9. Benefits of ATUM
Business
Information Model Align with the business on cost/consumption tradeoffs and IT value
Defensible Leverage the experience of 200+ IT orgs and the TBM Council
Accelerated
Benchmarking Benchmark alignment enables easy IT cost comparison with peers
Ecosystem
Leverage Fosters collaboration with a community of like-minded IT leaders
Fast Time to Value Rapid adoption of TBM via pre-packaged products & methodologies

10. ATUM in Action: Apptio Suite of TBM Applications
Apptio SaaS
APPLICATIONS
Apptio SaaS
PLATFORM
DATA
SOURCES
CIO/CTO
IT OPS/STRATEGY
GL/
FIXED ASSETS
BUDGET HR ASSET/
CMDB
PPM SERVICE
DESK
MONITORING PROVISIONING VENDORS
CLOUD
SERVICES
FINANCIAL OPERATIONAL BILLING
END
USERS
SELF-SERVICE ANALYTICS
ADAPTIVE DATA MANAGEMENT
ATUM
BUSINESS FINANCE
TAXONOMY MODEL DATA

11. Plan & Variance How is our financial agility?
How much
are we
investing?
What’s
driving plan
variance?

12. Costs by Domain & Function (Tower)
Tower cost
by Cost Pool

13. Server Cost-Efficiency Trends
Expenses are
rising…
…but cost-efficiency
is
improving

14. Benchmark Against Peers
Apples-to-apples
comparisons by Tower

15. Cloud Services We’re Consuming
by
Provider
by
Product
by
Customer
(AWS linked
acct)

16. Investments in Skills
by
Employee
Role
by
Internal/
External
Breakout by:
• Cost Center
• Internal/
External
• Role
• Location

17. Understand Application Spend
Investment
vs KTLO
by
Audience
by Sourcing
Strategy

18. Manage Project Investments
Are we shifting in
the right direction?
by
Investment
Type

19. Apptio
TBM
Unified
Model

20. Where Can You Learn More?
Join us in Glitter at 11am for a deeper dive
into the details of ATUM.
Look for a whitepaper on ATUM to be
available on our web site in a few weeks.