Technology Business Management

Alignment of IT and Business

In times when an IT organization’s success will be measured by the value it provides for the business, IT executives face the challenge to prove this value with concrete facts and figures. Technology Business Management (TBM) enables exactly this proof and in addition guarantees maximum IT/business alignment.

For this reason, TBM provides a link between the availability and performance levels of IT infrastructure components and the business-oriented IT services that provide the foundation for the business processes from two different points of view.

Another important aspect of Technology Business Management are costs. More and more companies today focus on higher cost transparency. This leads to an increasing demand for techniques to better monitor the IT costs. IT executives therefore need tools to assist them in this task. To enable an accurate cost analysis it is important to model the single cost units based on a pre-defined cost model. This plays an important role especially when a vendor will be changed or for the decision if there will be any virtualization or cloud computing initiatives in the future.

Contract Perspective and Service Status – One Side of the Coin

BSM-Überblick: Vertragsperspektive und Service-Status

On the one hand, Technology Business Management settles the contract terms for service delivery agreed between IT and business as well as their charging/settlement. Normally these terms have been defined in Service Level Agreements (SLAs).

On the other hand, TBM continuously captures data on the service status from IT Infrastructure Management, IT Operations Analytics or End User Experience management systems and evaluates them with regards to the business service’s availability and performance.

The following chart illustrates the different Technology Business Management views – from a contract perspective (SLAs, cost calculation) and from a service status view (actual status, incident/change management).

BSM chart

Thus, from a contract perspective Technology Business Management is doing everything based on trends and forecasts to avoid impeding service level agreement violations and the penalties involved.

From a service status perspective TBM enables the timely detection of negative service impacts – if possible before these impacts affect the end user’s work – based on information from End User Experience Management or IT Operations Analytics systems.

IT Cost Management – Business Services as the IT Department “Products“

BSM-Überblick, IT-Kostenmanagement

IT cost management is based on the assumption that IT services in fact are the “products“ of the IT department. For this reason, the full IT capital expenditures and all IT operating costs need to be linked to a corresponding service. As a consequence, these services then have to be evaluated based on their value to the business processes and business models supported by the IT organization. This means that the understanding of their business process impacts, indirect and direct revenues, resource productivity, relevance as well as demand for a specific service ideally should be linked with the costs that are caused by the development, delivery, management and shut-down of a service.

IT cost management focuses on the following areas:

  • Modelling and analysis of IT costs
  • Demand-oriented budget planning
  • Cost settlement

As a result, vendor management is playing an increasingly important role, as business services no longer have to be delivered by the IT department only, but also may be received in part or completely by external service providers (outsourcing, cloud computing, etc.). In the course of a progressing IT industrialisation more and more companies are discovering that it makes sense to substitute a fully-fetched on premises IT infrastructure with over-capacities, proprietary operating systems and data centre with a so called Retained Service Organisation (RSO) including a clear management and accountability order for the service management.

Technolog Business Management Case Study

Customer relationship management (CRM) has become a mission-critical business application in most enterprises. From a Technology Business Management (TBM) perspective the focus is not on operating the CRM system, but on guaranteeing all services necessary for the “customer relationship management” process.

For customer relationship management amasol is using “aKuma”, a CRM system especially tailored for the company’s requirements. The integration of “aKuma” into amasol’s Technology Business Management required several steps. In a first step all business-relevant features and process steps of the CRM system had to be defined.

Then the business-relevant performance indicators (KPIs) were defined in a top-down approach. Examples for important KPIs for the business were the evaluation of customer retention and the customer satisfaction index, but also the ratio of new customers vs. lost customers. From an end user’s perspective the KPI definition was based on business-relevant process steps such as the time required for setting up a new customer record or a new marketing campaign or the time required for finding specific customer information. Finally, the monitoring points and methods that were used for capturing the data needed for the KPI rating had to be described.

In the next step, a cost model was defined by identifying the cost drivers and distribution schemes. Afterwards the charging model could be defined based on major business-relevant KPIs (and/or PBAs).

In contrast to this top-down approach from a contract view the technical modelling of the dependences of process steps and components was done following a bottom-up approach as service tree of all technical and process relevant components.

TBM Implementation Advantages

By implementing a business service management system enterprises will leverage on the following advantages:

  • Implementation of a demand-oriented planning
  • Cost, usage and quality visibility
  • Control of IT/customer alignment
  • Mitigation of outsourcing risks
  • Implementation of an early warning system – both from a contract and a service status view

In addition, a TBM system provides the opportunity to find the best combination of “make or buy”. The progressive trend to a Retained Service Organisation (RSO) already was mentioned before. TBM enables organizations to use what-if scenarios to compare different make/buy combinations und finally decide for the most suitable combination to meet the company’s requirements.

amasol TBM Solution Portfolio

For many years, amasol has been successfully cooperating in TBM projects with leading vendor partners who enable amasol to rely on a market-proven solution and product portfolio.

 


Contract perspective,
IT cost management
Service status perspective
Products VMware IT Business Management Suite Dynatrace Business Service Manager, CA Service Operations Insight

TBM by amasol: Comprehensive Know-How and Consulting Services

In addition to the comprehensive solution and product portfolio, amasol’s customers benefit from the company’s many years of experience:

  • Based on the amasol philosphy “advanced management solutions“ quick roll-out, low risk
  • Easy-to-customize solutions, project experience in various user scenarios with different customer focus
  • Suitable TBM solution depending on the customer’s starting situation, ongoing support for optimization and automation


Contact

For further questions and information please contact

Stefan Deml
amasol AG
Campus Neue Balan
Claudius-Keller-Straße 3 B
81669 München
Tel.: +49 89 1894743-12
stefan.deml@amasol.de