TBM Framework & Taxonomy

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Hello William,

That is potentially a mighty big question! :-). There are some fundamental capabilities and outcomes early adopters typically begin with, and others that companies mature into. I'll list a few below, and recommend you ask the community additional follow up questions around those you feel address your highest priorities and/or pains.

1. Defensible showback / chargeback for IT Towers, and potentially Solutions (applications / product / services): Consumption-based views that can be drilled into for self-service interrogation by business units, legal entities, product entities and/or practice types. This ability to provide consumption volumes and accurate unit costs, built up from a standard taxonomy, goes a long way toward stopping any disbelief in "the numbers". It also enables IT to expose consumption levers business units can pull to impact their own costs, and allows IT to shape Demand using strategic rate setting. It is a prerequisite for informing transfer pricing if it is needed.

2. Solution (Product / Service / Application / Platform) TCO, based on specific underlying infrastructures and related metadata (location, type, CPUs, volumes etc.), plus software license costs, so you capture both "Run" and "Change" the business. Proper application TCO helps inform your journey to cloud, TCO optimization, portfolio rationalization, and use cases like investment decisions related to cost-performance, M&A, modernization, and risk. It is also the first big step toward understanding the cost-to-serve for your customers. We have healthcare organizations that have pushed beyond this, to show IT's contribution to every hospital bed, to certain outpatient service, and patient registrations. 

Both of the above can address fixed/variable, direct/indirect, OpEx/CapEx, discretionary / non-discretionary spend, depending on your need. The community is here for you, but we have no idea what problems you're attempting to solve, or the type of IT organization you are (e.g. central IT? heavily outsourced? owning all applications or only shared corporate apps?). There are an enormous number of people in the community to speak with, to understand how they started, and to help you understand where a good starting point for you might be.

3. Cloud cost management is another option, perhaps using FinOps (depending on how large your overall tech spend is vs. your cloud spend). This to help you optimize your cloud costs, ensure efficient consumption, and manage/reflect business unit economics.

There are so many other use cases for TBM that we would have to write a small book here. If I've hit on something that resonates above please ask more about it so the community can chime in. If not, let us know what you're interested in solving for, that way we can come back to you with more specific detail.  I've uploaded an introductory file from the Council from years past that may help as well.

Great to see you participate in the community forum - good luck!! 

Jack Bischof
VP, EMEA
Technology Business Management Council, Ltd.
1234567


Original Message:
Sent: 10-20-2022 15:55
From: William Cox
Subject: Practical Examples of using TBM

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Thank you very much for the prompt reply Jack. Helpful information.

At this point we are still figuring out which questions we need to ask. We have no near-term plans for show-back/charge-back. I know we can obtain a lot of information applying this model, but which we will actually use is still fuzzy. I believe having greater transparency in knowing how much we spend for various services will prompt realization of areas that can be improved. And knowing more, with the ability to explain spend, will help us avoid directives to cut where it hurts more than helps.  In general, we know we can tighten and better allocate expenditures (that is always the case, even though we don't tend to be wasteful). Our large expenditures (Microsoft, Epic, etc.) I believe are negotiated about as well as they can be. Where I see opportunity is in the expenditures that fall below the radar. Over time and with multiple instances, this can add up to enough to get us through tougher times and free up money for more transformative projects. 

We are about a $2B non-profit healthcare organization serving the communities of Northeast TN and Southwest VA with 21 hospitals and numerous ambulatory locations (urgent care, pharmacy, lab, rehab, etc.). I believe we have right about $100M in OpEx.

What I am looking for is actual, specific examples of how this has been applied by other organizations, especially healthcare, more so than the general principles.

Thanks for any and all insights/examples.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Original Message:
Sent: 10-20-2022 16:26
From: Jack Bischof
Subject: Practical Examples of using TBM

Hello William,

That is potentially a mighty big question! :-). There are some fundamental capabilities and outcomes early adopters typically begin with, and others that companies mature into. I'll list a few below, and recommend you ask the community additional follow up questions around those you feel address your highest priorities and/or pains.

1. Defensible showback / chargeback for IT Towers, and potentially Solutions (applications / product / services): Consumption-based views that can be drilled into for self-service interrogation by business units, legal entities, product entities and/or practice types. This ability to provide consumption volumes and accurate unit costs, built up from a standard taxonomy, goes a long way toward stopping any disbelief in "the numbers". It also enables IT to expose consumption levers business units can pull to impact their own costs, and allows IT to shape Demand using strategic rate setting. It is a prerequisite for informing transfer pricing if it is needed.

2. Solution (Product / Service / Application / Platform) TCO, based on specific underlying infrastructures and related metadata (location, type, CPUs, volumes etc.), plus software license costs, so you capture both "Run" and "Change" the business. Proper application TCO helps inform your journey to cloud, TCO optimization, portfolio rationalization, and use cases like investment decisions related to cost-performance, M&A, modernization, and risk. It is also the first big step toward understanding the cost-to-serve for your customers. We have healthcare organizations that have pushed beyond this, to show IT's contribution to every hospital bed, to certain outpatient service, and patient registrations. 

Both of the above can address fixed/variable, direct/indirect, OpEx/CapEx, discretionary / non-discretionary spend, depending on your need. The community is here for you, but we have no idea what problems you're attempting to solve, or the type of IT organization you are (e.g. central IT? heavily outsourced? owning all applications or only shared corporate apps?). There are an enormous number of people in the community to speak with, to understand how they started, and to help you understand where a good starting point for you might be.

3. Cloud cost management is another option, perhaps using FinOps (depending on how large your overall tech spend is vs. your cloud spend). This to help you optimize your cloud costs, ensure efficient consumption, and manage/reflect business unit economics.

There are so many other use cases for TBM that we would have to write a small book here. If I've hit on something that resonates above please ask more about it so the community can chime in. If not, let us know what you're interested in solving for, that way we can come back to you with more specific detail.  I've uploaded an introductory file from the Council from years past that may help as well.

Great to see you participate in the community forum - good luck!! 

Jack Bischof
VP, EMEA
Technology Business Management Council, Ltd.
1234567


Original Message:
Sent: 10-20-2022 15:55
From: William Cox
Subject: Practical Examples of using TBM

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Hi William, I'd be happy to chat a bit about the TBM journey of some of our healthcare clients, namely, the catalyst(s) they experienced to get started and how they're leveraging TBM today. I can even facilitate some introductions for you with them if you'd find that beneficial.

If you'd like, shoot me an email. I'll be OOO next week but can set some time up. I'll also be attending the TBM Conference in November, so if you will be there, we could connect in person. Let me know!

Take care,
Jeremy

------------------------------
Jeremy Morin
Sr. Manager & TBM Practice Lead
Advocate
Raleigh NC
(919) 608-2940
------------------------------

Original Message:
Sent: 10-21-2022 14:36
From: William Cox
Subject: Practical Examples of using TBM

Thank you very much for the prompt reply Jack. Helpful information.

At this point we are still figuring out which questions we need to ask. We have no near-term plans for show-back/charge-back. I know we can obtain a lot of information applying this model, but which we will actually use is still fuzzy. I believe having greater transparency in knowing how much we spend for various services will prompt realization of areas that can be improved. And knowing more, with the ability to explain spend, will help us avoid directives to cut where it hurts more than helps.  In general, we know we can tighten and better allocate expenditures (that is always the case, even though we don't tend to be wasteful). Our large expenditures (Microsoft, Epic, etc.) I believe are negotiated about as well as they can be. Where I see opportunity is in the expenditures that fall below the radar. Over time and with multiple instances, this can add up to enough to get us through tougher times and free up money for more transformative projects. 

We are about a $2B non-profit healthcare organization serving the communities of Northeast TN and Southwest VA with 21 hospitals and numerous ambulatory locations (urgent care, pharmacy, lab, rehab, etc.). I believe we have right about $100M in OpEx.

What I am looking for is actual, specific examples of how this has been applied by other organizations, especially healthcare, more so than the general principles.

Thanks for any and all insights/examples.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248

Original Message:
Sent: 10-20-2022 16:26
From: Jack Bischof
Subject: Practical Examples of using TBM

Hello William,

That is potentially a mighty big question! :-). There are some fundamental capabilities and outcomes early adopters typically begin with, and others that companies mature into. I'll list a few below, and recommend you ask the community additional follow up questions around those you feel address your highest priorities and/or pains.

1. Defensible showback / chargeback for IT Towers, and potentially Solutions (applications / product / services): Consumption-based views that can be drilled into for self-service interrogation by business units, legal entities, product entities and/or practice types. This ability to provide consumption volumes and accurate unit costs, built up from a standard taxonomy, goes a long way toward stopping any disbelief in "the numbers". It also enables IT to expose consumption levers business units can pull to impact their own costs, and allows IT to shape Demand using strategic rate setting. It is a prerequisite for informing transfer pricing if it is needed.

2. Solution (Product / Service / Application / Platform) TCO, based on specific underlying infrastructures and related metadata (location, type, CPUs, volumes etc.), plus software license costs, so you capture both "Run" and "Change" the business. Proper application TCO helps inform your journey to cloud, TCO optimization, portfolio rationalization, and use cases like investment decisions related to cost-performance, M&A, modernization, and risk. It is also the first big step toward understanding the cost-to-serve for your customers. We have healthcare organizations that have pushed beyond this, to show IT's contribution to every hospital bed, to certain outpatient service, and patient registrations. 

Both of the above can address fixed/variable, direct/indirect, OpEx/CapEx, discretionary / non-discretionary spend, depending on your need. The community is here for you, but we have no idea what problems you're attempting to solve, or the type of IT organization you are (e.g. central IT? heavily outsourced? owning all applications or only shared corporate apps?). There are an enormous number of people in the community to speak with, to understand how they started, and to help you understand where a good starting point for you might be.

3. Cloud cost management is another option, perhaps using FinOps (depending on how large your overall tech spend is vs. your cloud spend). This to help you optimize your cloud costs, ensure efficient consumption, and manage/reflect business unit economics.

There are so many other use cases for TBM that we would have to write a small book here. If I've hit on something that resonates above please ask more about it so the community can chime in. If not, let us know what you're interested in solving for, that way we can come back to you with more specific detail.  I've uploaded an introductory file from the Council from years past that may help as well.

Great to see you participate in the community forum - good luck!! 

Jack Bischof
VP, EMEA
Technology Business Management Council, Ltd.
1234567


Original Message:
Sent: 10-20-2022 15:55
From: William Cox
Subject: Practical Examples of using TBM

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Hi William,

Whilst not in healthcare, I'm happy to share some of the good examples we use here at Nationwide Building Society.  We've being practicing TBM for over 8 years now and have a very mature model, but still always breaking new uses.

We apply it when refreshing our Technology Strategy and then track progress against it from a cost perspective.  It's one of our core decision factors is setting out our future strategy.

We closely align this roadmap to our 3rd Party contract renewals.  Knowing was our estate is going to do, helps shape our negotiations with suppliers.

As @jack bischof mentions, Cloud Cost Management is another example we use TBM/FinOps for.  We regularly measure the missed optimisation opportunities to demonstrate the cost impact of not architecting our solutions for cloud as best we can.

TBM and showback form our standing agenda at our monthly Technology Finance Board with our Executives.

Hope that helps.

Sasha
​

------------------------------
Sasha Dunford
Head of TBMO
Nationwide Building Society
Swindon
07342 080443
------------------------------

Original Message:
Sent: 10-20-2022 15:55
From: William Cox
Subject: Practical Examples of using TBM

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Thank you very much for your feedback. Much appreciated.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------

Original Message:
Sent: 10-24-2022 10:01
From: Sasha Dunford
Subject: Practical Examples of using TBM

Hi William,

Whilst not in healthcare, I'm happy to share some of the good examples we use here at Nationwide Building Society.  We've being practicing TBM for over 8 years now and have a very mature model, but still always breaking new uses.

We apply it when refreshing our Technology Strategy and then track progress against it from a cost perspective.  It's one of our core decision factors is setting out our future strategy.

We closely align this roadmap to our 3rd Party contract renewals.  Knowing was our estate is going to do, helps shape our negotiations with suppliers.

As @jack bischof mentions, Cloud Cost Management is another example we use TBM/FinOps for.  We regularly measure the missed optimisation opportunities to demonstrate the cost impact of not architecting our solutions for cloud as best we can.

TBM and showback form our standing agenda at our monthly Technology Finance Board with our Executives.

Hope that helps.

Sasha
​

------------------------------
Sasha Dunford
Head of TBMO
Nationwide Building Society
Swindon
07342 080443

Original Message:
Sent: 10-20-2022 15:55
From: William Cox
Subject: Practical Examples of using TBM

I would appreciate any feedback on practical, specific examples of applying TBM. This would be helpful for me to wrap my mind around what I think is a good concept, and to better explain it to our IT senior leadership.

Thank you.

------------------------------
William Cox
IT Finance Manager
Ballad Health
TN
14233020248
------------------------------