Why ITFM?

Answers to common questions and concerns.

• What’s the difference between ITFM and TBM?

  

  Technology Business Management (TBM) is a common term used to describe the management of IT business processes to enable more efficient and effective use of IT resources. Increased visibility into IT spend and consumption enables more informed decision-making through real-time visibility, process efficiency and effectiveness, optimized resource management, and collaboration.

  Sounds similar to IT Financial Management (ITFM), right? Hence, the common confusion. There are varying opinions, but many see TBM as a collection of supporting applications and integrated solutions including ITFM, IT Service Management (ITSM), Project Portfolio Management (PPM), etc. Either way, it is important to have a vision and a roadmap for delivering value back into the business through improved IT management.

  Whether you define it as TBM or ITFM, success requires stakeholder buy-in, an agreed-upon “end state”, a roadmap to get there, and a trusted partner and solution.

• Can’t I manage IT finances in spreadsheets?

  

  Spreadsheet applications hold a special place in the hearts of IT Finance professionals, but the core capabilities of these applications don’t extend to accommodate the rigors of today’s financial management task load. Many organizations with IT budgets under $25-40M have operated within these spreadsheets successfully for years. As technology spend and data sets grow larger, the complexity of analyses increases, and the practical utility we once loved now hinders the ability to track, report, forecast, and manage IT spend. The following common challenges may help your organization determine if it’s time to consider an ITFM solution:

  • Data is not centralized. Files are shared via email and integrating and tracking multiple versions is burdensome.
  • Complex models take a long time to open and run.
  • Tedious, manual updates are limiting resources and efficiencies.

  Read more in this blog.

• Where do corporate planning tools fit in ITFM?

  

  Corporate planning tools can be very powerful for corporate finance needs and many organizations question the need for an “additional budgeting and forecasting tool.” There are a few shortfalls of these tools, however, that become very apparent in the journey to ITFM success.

  • Corporate planning tools rarely offer the level of granularity needed to effectively build an IT budget, forcing organizations to maintain the “real” IT budget offline, typically in spreadsheets.
  • Corporate planning tools track multi-year assets, but rarely track detailed information such as annual price increases- which can impede annual budgeting exercises. Calculating future expense streams happens automatically in an ITFM solution.
  • Corporate planning tools provide variances at a cost center or account level which can lead to many hours wasted digging through various data sources and matching data within spreadsheets. Track actuals against specific forecasted items with an ITFM solution.

  Read more in this blog.

• What if my data is dirty or incomplete?

  

  ITFM programs rarely have the luxury perfect data (or even great data) on day one, and it’s in no way a prerequisite. Most organizations start with “good enough” and improve over time.

  In fact, attempting to rectify bad data beforehand – without any context to guide your effort – is often an open-ended and chaotic exercise. It’s hard to know what’s missing or broken until you have a reason to look. The framework provided by an ITFM program makes the process far more straightforward.

• Is additional headcount needed to get maximum value from an ITFM solution?

  

  No staffing changes are needed to reap full benefit from a solution like Nicus. If yearly tech spend meets or exceeds the appropriate threshold to warrant a solution, both IT Finance staff and the business partners they interface with will realize considerable time savings – netting the organization more manpower without adding headcount.

• Why should an ITFM program take precedence over my existing initiatives?

  

  When organizations haven’t seen what a mature ITFM practice can accomplish, it’s easy to slap on the “shiny object” label and move on. But unlike other initiatives, ITFM doesn’t have just a singular impact; it’s a force multiplier of everything else your organization is already doing.

  Assuming completion of a thorough Proof of Value exercise, the opportunity cost of not pursuing ITFM today will likely render any delay to existing projects inconsequential.