Update Your TBM Model with a New Taxonomy Version
The release of TBM Taxonomy v5.0 marks a significant step forward in modeling technology costs, capabilities, and consumers. It enhances support for cloud, AI, ESG, and product-centric delivery, while improving alignment with FinOps, Agile, NIST, and ServiceNow CSDM.
If your organization currently uses Taxonomy version 4.0 or 4.1, this guide will help you plan and implement a successful migration to v5.0.
Why Migrate?
TBM Taxonomy v5.0 improves how you classify, allocate, and communicate technology investments. Major changes include:
- New Cost Pools: Cloud Services (for FinOps), Staffing (unifying labor)
- Modernized Towers: Application, Data, Smart Devices, and split Security & Risk towers
- Updated Solutions Layer: New solution types for AI and Sustainability
- Expanded Consumer Layer: Includes value streams, products, and portfolios
These updates support richer reporting, cleaner allocations, and strategic decision-making.
Migration in 8 Steps
Use this structured process to migrate your model to TBM v5.0.
Step 1: Inventory and Impact Assessment
Catalog all taxonomy dependencies across your TBM ecosystem
Before migrating to TBM Taxonomy v5.0, identify every place where taxonomy terms are used in your systems, rules, and reporting. This step ensures you understand the full scope of the transition and prevents gaps during implementation.
1.1 Inventory Allocation Logic
Review all allocation rules defined in your TBM platform or cost modeling system.
- Export the current rule set or configuration.
- For each rule, capture:
- Source object (e.g., GL account, cost center)
- Target object (e.g., tower, solution, consumer)
- Allocation driver (e.g., headcount, ticket volume, usage)
- Source system for driver data
- Any references to taxonomy objects (e.g., External Labor, Platform tower)
What to look for:
- Deprecated source or target terms like External Labor, Platform, or Applications.
- Allocation paths that bypass layers (e.g., cost pool directly to consumer).
- Static driver logic that could be modernized (e.g., fixed percentages or default splits).
1.2 Analyze Data Transformation and Classification Logic
Audit your ETL pipelines and data staging processes. Focus on logic that classifies or enriches incoming records before allocation.
- Review:
- Source-to-target mapping rules (e.g., GL account to cost pool)
- Enrichment steps using vendor lists, application registries, or service ownership
- Transformation logic for labor, cloud, or SaaS data
- Flag:
- Hardcoded references to legacy structures like Internal/External Labor or Outside Services
- Mapping rules assigning DevOps or data tools to the Platform tower
- Absence of logic for new structures like Cloud Services, Smart Devices, or AI
1.3 Catalog Dashboards, Reports, and KPIs
Identify all dashboards, reports, and visualizations that display taxonomy-driven data.
- Capture:
- Report name and owner
- Taxonomy elements used (e.g., filters, slicers, legends)
- Calculated fields or KPIs built on taxonomy rollups
- Dependencies on now-retired groupings (e.g., labor by internal vs. external)
- Classify each report by taxonomy layer:
- Cost Pool-based
- Tower-based
- Solution-based
- Consumer-based
Common issues to flag:
- Filters that use Platform or Application as solution types
- Aggregations built on now-merged sub-towers (e.g., Unix/Midrange → Server)
- Charts trending v4.x data that will break without a crosswalk
1.4 Identify Stakeholder Dependencies
Determine which user groups rely on TBM reporting and models tied to taxonomy elements.
- List stakeholders and business units:
- IT Finance
- Product and Service Owners
- CloudOps / FinOps
- Enterprise Architecture
- Business Unit Leaders / Portfolio Owners
- For each group, assess:
- Reports or models they use regularly
- Decision-making processes affected (e.g., budgeting, cost recovery, ESG tracking)
- Level of fluency with taxonomy structure and reporting logic
Why this matters:
Stakeholders who depend on taxonomy-linked reports will need clear communication, early exposure to changes, and support interpreting new structures.
Quick Tip: Document which reports or outputs are critical to which stakeholder groups, and flag those for change management.
1.5 Organize and Prioritize the Inventory
Create a master inventory workbook or issue tracker to log everything discovered in 1.1 through 1.4.
Recommended fields (and example values):
Item | System | Layer | Taxonomy Term | Impact Level | Action Needed |
Allocation Rule: CloudOps Alloc | TBM Platform | Cost Pool → Tower | Outside Services | High | Re-map to Cloud Services |
ETL: GL Account 54300 Map | Data Lake | Cost Pool | External Labor | Medium | Update to Staffing > Contractors |
Dashboard: Infra Spend by Tower | Power BI | Tower | Platform | High | Rebuild filters and groupings |
KPI: App Support Cost | Tableau | Solution | Application Solution | Medium | Reclassify under Service |
Stakeholder: Product VP | Business Unit | Consumer | Product / Portfolio | High | Flag for early engagement |
Quick Tip: Add sorting and filtering to support planning, sequencing, and migration status tracking.
What Success Looks Like
By the end of Step 1, you should have:
- A complete inventory of taxonomy-dependent logic, reports, and transformation rules
- Stakeholder mappings to affected reports and system
- An impact-ranked list of remediation items by taxonomy layer
- A well-organized workbook or tracking system to carry forward through migration
This sets the foundation for Steps 2–8 and will help align your team, estimate effort, and guide communications.
Step 2: Design the Updated Taxonomy Model
Translate legacy taxonomy elements into the TBM v5.0 structure
With your current-state inventory complete, the next step is to design your updated TBM model using Taxonomy v5.0. This means translating or remapping outdated elements, incorporating new structures, and ensuring your v5.0 design reflects how your organization delivers, supports, and consumes technology services today.
This is not just a technical task—it requires strategic alignment with finance, product, architecture, and operations teams.
2.1 Review What Changed in Taxonomy v5.0
Begin by understanding the key structural and conceptual changes introduced in TBM v5.0. Focus on how each of the four taxonomy layers has evolved:
- Cost Pools:
- Cloud Services is now a standalone top-level cost pool
- Staffing replaces Internal and External Labor
- Managed Services and Other Operating introduced across multiple pools
- Resource Towers:
- Platform and Output towers are retired
- Smart Devices and Data are introduced
- Security & Compliance is split into Security and Risk & Compliance
- New domain groupings support executive-level views
- Solutions Layer:
- Applications are no longer standalone solutions—they now support Products and Services
- Artificial Intelligence and Sustainability & ESG added as solution types
- Consumer Layer:
- Renamed from Business Layer to Consumer Layer
- Now includes Value Streams, Products, Portfolios, and Digital Services
Quick Tip: Visit our taxonomy page for documentation on renamed, merged, retired, or reclassified elements.
2.2 Build a Crosswalk from v4.1 to v5.0
Using your inventory from Step 1, create a detailed crosswalk between legacy and new taxonomy elements.
- For each retired or changed object, identify its v5.0 equivalent(s)
- Note whether the relationship is:
- One-to-one (e.g., External Labor → Staffing > Contractor)
- One-to-many (e.g., Platform → Application + Data towers)
- Many-to-one (e.g., Expense sub-pools → Other Operating)
Common examples:
v4.1 Object | v5.0 Replacement(s) |
External Labor | Staffing > Staff Augmentation |
Platform Tower | Application, Data, or Smart Devices Towers |
Application (Solution) | Service or Product + Application Hosting |
Outside Services | Cloud Services or Managed Services |
Business Unit | Consumer > BU / Product / Value Stream |
2.3 Define New Hierarchies and Rollups
As you adopt the v5.0 structure, build out the new object hierarchies in your model. This includes:
- New Sub-Pools under Staffing, Cloud Services, and other cost pools
- New Sub-Towers such as:
- ML Engineering, Model Hosting under the Data tower
- IoT Devices, Operational Technology under Smart Devices
- New Solution Types and Categories, including:
- Artificial Intelligence
- Sustainability & ESG under Shared & Corporate Services
- New Consumer dimensions, enabling attribution to:
- Value Streams
- Digital Services
- Agile Portfolios
Quick Tip:If you’re modeling AI internally, consider whether costs should be attributed via the AI Solution or the AI sub-towers (based on your visibility and maturity).
2.4 Apply Metadata and Version Tags
To support traceability, validation, and future audits:
- Tag all new taxonomy objects with:
- Version label (e.g., “TBM v5.0.0”)
- Mapping source (e.g., “Crosswalk v1.2, March 2025”)
- Design notes or rationale (e.g., “Mapped to Data tower based on DevOps platform function”)
- Maintain a change log documenting:
- Each new object created
- Each legacy object deprecated
- Notes on stakeholder approval or variance
What Success Looks Like
By the end of Step 2, you should have:
- A complete crosswalk from v4.1 taxonomy objects to v5.0 replacements
- A working model of the new cost pools, towers, solutions, and consumer hierarchies
- Metadata versioning to track which objects have changed and how
- Alignment with key stakeholder groups—especially Architecture, Finance, CloudOps, and Product teams
This updated model serves as the blueprint for your new cost allocation logic, ETL updates, and dashboard redesign.
Step 3: Update and Test Allocation Logic
Redesign cost allocation rules for consistency, transparency, and accuracy
With your v5.0 taxonomy model defined, the next step is to rework your allocation logic so it aligns to the updated object structure. This step is essential for ensuring that cost flows remain accurate, interpretable, and compliant with the new layer relationships introduced in v5.0.
This is also a chance to improve the quality of your cost allocations through better driver selection, segmentation, and documentation.
3.1 Reclassify Allocation Targets and Sources
Review every allocation rule in your model and update object references according to your v5.0 crosswalk. Common changes include:
- Labor allocations must now flow through the Staffing cost pool:
- Internal Labor → Staffing > Internal Labor
- Contractors → Staffing > Staff Augmentation
- Cloud costs must be routed through the Cloud Services cost pool, not Outside Services
- Platform tower targets must be reassigned:
- Integration & DevOps → Application tower
- Data Platforms → Data tower
- Print services → Shared Services or End User
- Applications must no longer be used as standalone solutions:
- Reroute allocations to Product/Service hierarchies
- Use Application Hosting or Support as needed under Service Delivery
3.2 Upgrade Allocation Drivers for Precision
Use the migration as an opportunity to improve the fairness and traceability of your cost allocations.
- Replace static splits (e.g., headcount %, project codes) with usage-based drivers where possible:
- Cloud spend → Tag-based usage metrics
- Labor → Time tracking, project hours, work order logs
- AI platforms → Training hours, GPU usage, model runs
- Ensure drivers are aligned to sourcing models:
- Full-time staff → Time or effort
- Contractors → Project codes or deliverables
- Managed Services → Vendor SLA tier or service consumption
3.3 Enforce Layer-to-Layer Allocation Consistency
TBM v5.0 reinforces the layered flow of cost attribution:
- Costs must flow:
- From Cost Pools → Towers
- From Towers → Solutions
- From Solutions → Consumers
Ensure that:
- No rules skip layers (e.g., Cost Pool → Consumer)
- Each intermediate layer has appropriate mappings and drivers
- Exceptions are rare, documented, and justified (e.g., shared services)
3.4 Segment Allocation Logic by Context
Introduce more granular rules based on delivery model or asset type. For example:
- Labor:
- Internal Staff → Allocate by time
- Staff Augmentation → Allocate by PO or contract
- Managed Services → Allocate by service volume
- Cloud:
- IaaS → Allocate by compute/storage usage
- PaaS → Allocate by license unit or service ID
- SaaS → Allocate by user access or integration volume
- AI:
- Commercial tools → Allocate to Artificial Intelligence solution
- Internal platforms → Route through Data tower > AI sub-tower
3.5 Document Allocation Logic and Design Decisions
For each rule, include:
- Allocation rule ID or label
- Source and target object(s)
- Driver and its source system
- Rationale for design (why this path and driver were chosen)
- Known exceptions or limitations
- Version tag (e.g., “Updated for TBM v5.0”)
3.6 Test Allocations and Validate Results
Before go-live:
- Run sample allocations on a test dataset (e.g., one fiscal period or one business unit)
- Compare allocation outcomes to historical v4.1 results
- Review:
- Shifts in cost attribution at pool, tower, solution, and consumer levels
- Spikes, gaps, or unallocated costs
- Changes in unit costs, showback amounts, and total allocations
Engage key stakeholders (e.g., Finance, CloudOps, Product) to interpret and validate results. Use formal signoff or issue tracking to document questions and resolutions.
Quick Tip: Adjust logic iteratively based on testing outcomes.
What Success Looks Like
By the end of Step 3, you should have:
- Fully redesigned allocation logic aligned to v5.0 structures
- Upgraded drivers that improve allocation quality and trust
- Documented rationale and logic for all allocation paths
- Successful test allocations validated by key stakeholders
- Layered cost flows ready for production use
This step ensures that the foundation of your TBM model—cost attribution—is technically correct, traceable, and credible as you prepare to modify your pipelines and rebuild dashboards.
Step 4: Modify Data Transformation and ETL Pipelines
Ensure upstream data aligns with the new taxonomy before allocation begins
Your TBM model relies on accurate and classified data before any allocation logic is applied. To support TBM Taxonomy v5.0, you must update your data transformation logic, enrichment rules, and staging layers so that incoming records (from GL, cloud, HR, etc.) are correctly categorized before reaching your model.
4.1 Update Source Mapping Rules
Start by reviewing all inbound data feeds and identifying how taxonomy classification is currently applied:
Examples of source data to review:
- General Ledger extracts
- HR and payroll files
- Cloud billing exports (e.g., AWS CUR, Azure EA)
- SaaS invoices and license reports
- Time tracking or project systems
What to update:
- Remove logic tied to deprecated v4.x elements (e.g., Internal Labor, External Labor, Platform)
- Redirect legacy classifications to new structures:
- External Labor → Staffing > Staff Augmentation
- Outside Services > Cloud → Cloud Services > Cloud Provider
- DevOps platform → Application tower
- Enable support for new taxonomy objects, such as:
- Smart Devices
- AI sub-towers (e.g., ML Engineering)
- Sustainability & ESG solution type
4.2 Modify ETL Logic and Staging Scripts
Adjust technical pipelines used to ingest, transform, and stage your TBM data.
- Embed crosswalk logic:
- Create a master v4.1-to-v5.0 mapping table
- Integrate it into transformation logic to auto-reclassify legacy records
- Enrich classification using reference data:
- Application inventory or service registries (for solution classification)
- Vendor master lists (for Managed Services or Cloud Service Provider sub-pools)
- Cloud tag dictionaries (for workload type, environment, team ownership)
- Support new object dimensions:
- Add fields for new sub-pools, towers, and solutions in your staging schemas
- Update transformation rules to populate these fields based on source data attributes
4.3 Reclassify Third-Party and Unstructured Spend
TBM v5.0 emphasizes better treatment of externally delivered and cloud-native services. Poor classification of these categories can lead to distorted allocations.
- Improve tagging fidelity for cloud services:
- Enforce use of tags for cost center, environment, application, and project
- Use these tags to drive sub-pool classification (e.g., Compute, Storage, Database)
- Collaborate with Procurement to enrich third-party records:
- Identify vendor delivery models (e.g., Managed Services vs. Staff Augmentation)
- Leverage contract metadata to determine correct cost pool and tower
- Avoid catch-all classifications like “Other Operating” unless necessary; large volumes here should be flagged for review
4.4 Enable Dual Compatibility for Transition Periods
For smoother testing and validation:
- Create dual-path pipelines, where:
- One set of transformation rules stages data for v4.1 taxonomy
- A parallel path applies v5.0 classification
- Tag each record with taxonomy version (e.g., taxonomy_version = “v5.0.0”)
- Use parallel staging tables or fields (e.g., tower_v4, tower_v5) to support side-by-side dashboard views
4.5 Implement Validation and Traceability Controls
As classification logic grows more complex, introduce controls to ensure ongoing accuracy and audit readiness.
- Key QA metrics:
- % of records mapped automatically vs. manually
- Volume of spend in fallback categories
- Spend distribution across new towers and cost pools
- Validation techniques:
- Track null values or unmapped classifications in key fields
- Flag unexpected shifts in spend across taxonomy layers
- Cross-check classification intent with sourcing records or service owners
- Maintain audit logs:
- Record transformation version used per record
- Track overrides, manual adjustments, and rule exceptions
What Success Looks Like
By the end of Step 4, you should have:
- Transformation and staging logic that aligns all source data to TBM Taxonomy v5.0
- Classification coverage for all new objects (e.g., AI, Smart Devices, ESG)
- Clean, enriched records flowing into the TBM model with clear version tagging
- QA processes and traceability in place for downstream audit and reporting
This ensures that the raw inputs to your TBM model are structured, complete, and ready for allocation and dashboarding in the next steps.
Step 5: Redesign Dashboards and Reports
Rebuild visualizations to reflect TBM Taxonomy v5.0 and preserve reporting trust
The migration to TBM v5.0 affects how data is grouped, labeled, and visualized across your TBM dashboards. Many reports will need structural updates to align with the new taxonomy—especially if they reference retired objects, layer-specific filters, or embedded calculations.
This step is not just technical; it’s critical to maintaining stakeholder trust in TBM outputs.
5.1 Assess the Scope of Reporting Impact
Begin by reviewing your full report inventory (from Step 1) and categorizing the impact of taxonomy changes:
Identify reports that:
- Filter on renamed, retired, or restructured taxonomy elements (e.g., Platform, External Labor)
- Group data by tower, solution, or cost pool rollups
- Visualize trends that will be disrupted without translation logic
- Include KPIs derived from deprecated structures
Key areas to evaluate:
- Dashboards showing labor costs by type → Now must use Staffing cost pool sub-pools
- Reports displaying Applications as standalone solutions → Must reclassify under Services or Products
- Tower-based spend visuals → Must redistribute Platform content to Application, Data, or Compute
5.2 Audit Filters, Groupings, and Calculated Fields
Once priority dashboards are identified, perform a detailed audit of each:
- Filters and Slicers:
- Replace references to deprecated terms with their v5.0 equivalents
- Add filters for new objects (e.g., Smart Devices, AI, ESG)
- Visual Groupings:
- Update charts grouped by cost pool or tower to reflect new structures
- Ensure sub-tower realignments (e.g., Unix + Midrange → Server) are reflected in visuals
- KPIs and Calculations:
- Review any derived metrics that include specific taxonomy rollups (e.g., Infrastructure OpEx, Application TCO)
- Document and revise calculations to reflect new mappings and definitions
5.3 Rebuild and Version Your Dashboards
For most dashboards, remediation involves more than quick edits—it requires thoughtful redesign.
- Create v5.0 versions of all critical dashboards:
- Preserve v4.1 versions for historical continuity and side-by-side comparison
- Label all dashboards clearly (e.g., “Tower Spend – FY24 (v5.0)”)
- Align dashboards to new taxonomy layers:
- Use hierarchical visual structures: Cost Pool → Tower → Solution → Consumer
- Include roll-up views and drill-downs for new object groupings (e.g., Infrastructure Services, Software Platforms)
- Centralize logic and naming conventions:
- Use a semantic layer or standardized metadata definitions to ensure consistency across visualizations
- Avoid hardcoding taxonomy terms into chart titles or formulas
5.4 Communicate Reporting Changes to Stakeholders
Redesigned dashboards must not only be accurate—they must also be understood. Proactive communication is critical.
- Show “before and after” views:
- Use side-by-side charts or overlays to show how tower or cost pool groupings have changed
- Highlight renamed or retired elements:
- Provide visual maps or crosswalk tables within the dashboard or as companion sheets
- Deliver support materials:
- Dashboards with inline tooltips or glossary links
- Short videos or walkthroughs for high-impact reports
- Role-based transition guides (e.g., for Finance Analysts, Product Managers, CloudOps)
5.5 Prepare for Financial Continuity and Version Control
To preserve trust in trending data and comparisons over time:
- Embed taxonomy version tags:
- In dashboard titles, metadata layers, and exports
- Support legacy filtering during transition:
- Allow users to toggle between v4.1 and v5.0 views where appropriate
- Use mapping tables to reconcile historical groupings (e.g., “Old Tower” vs. “New Tower”)
- Archive v4.1 dashboards:
- Mark them as historical (e.g., “Final FY23 – v4.1”) and restrict editing
What Success Looks Like
By the end of Step 5, you should have:
- Updated or rebuilt all dashboards and reports impacted by taxonomy changes
- Clear visual alignment to the new Cost Pool, Tower, Solution, and Consumer structures
- Versioned dashboards with side-by-side comparison capability
- Stakeholders trained and confident in using the new reporting views
- A clear mapping of which metrics have changed, why, and how to interpret them
Your redesigned reports will now reflect the upgraded taxonomy and serve as a trusted source for strategic decisions.
Step 6: Validate with Dual Modeling
Run both v4.1 and v5.0 models in parallel to ensure financial integrity and stakeholder trust
Before cutting over to TBM Taxonomy v5.0, it is essential to validate that your new model is producing accurate and explainable results. The best way to achieve this is by running dual models—maintaining both v4.1 and v5.0 classifications across multiple reporting cycles for comparison, reconciliation, and stakeholder review.
This phase gives your organization the confidence to switch to v5.0 without losing continuity in year-over-year trends or financial reporting.
6.1 Configure and Run Dual Models
Begin by staging your TBM model to support two concurrent classification structures:
- Load identical source data into both v4.1 and v5.0 environments
- Use either:
- Separate models within your TBM tool (if supported)
- A single model with dual-tagged staging tables and taxonomy switch logic
- Ensure that both models:
- Use the same driver data
- Share the same allocation logic wherever structurally possible
- Output comparable cost flows to towers, solutions, and consumers
6.2 Reconcile Key Financial Metrics
Compare outputs between the two models at multiple levels of aggregation:
- At the cost pool level:
- Verify that total labor, software, and cloud costs remain stable, even if reclassified
- At the tower level:
- Investigate shifts due to tower retirements or sub-tower consolidation (e.g., Platform → Application + Data)
- At the solution level:
- Track reallocation from Applications to Products or Services
- At the consumer level:
- Ensure reporting logic aligns with changes in BU, product, and value stream attribution
6.3 Identify and Explain Structural Breaks
Use the crosswalk developed in Step 2 to help explain variances in trend lines and historical comparisons.
- For each major variance:
- Reference the specific taxonomy change (e.g., “Cloud moved from Outside Services to Cloud Services”)
- Use visuals or annotated dashboards to illustrate the change
- Prepare narrative summaries that can be shared with Finance, Audit, or Executive users
Examples:
- A sudden increase in the Application tower under v5.0 may reflect the redistribution of former Platform and End User functions
- ESG tracking under Shared Services may now appear as a separate line item for the first time
6.4 Engage Stakeholders in the Validation Process
Invite key stakeholder groups to participate in validation exercises:
- Finance teams: Review year-over-year spend trends, unit costs, and showback outputs
- Product and Service owners: Validate product-level allocations and solution alignment
- CloudOps or FinOps teams: Compare v4.1 vs. v5.0 cloud spend classification and tagging resolution
- Executive teams: Preview high-level changes to tower, consumer, or solution rollups
Host sessions that:
- Walk through side-by-side dashboards
- Explain the rationale behind taxonomy changes
- Invite feedback on interpretation, naming, and metric definition changes
6.5 Refine Allocation Logic and Classification Rules
As you review the output of your dual-model run:
- Track any unresolved anomalies, data gaps, or model behavior inconsistencies
- Adjust:
- Allocation rules (e.g., incorrect routing or missing drivers)
- Staging logic (e.g., misclassified spend or unmapped records)
- Dashboard definitions (e.g., filter mismatches or legacy KPIs)
Repeat the dual-model comparison across at least 1–2 full reporting cycles (monthly or quarterly), depending on your business rhythm.
What Success Looks Like
By the end of Step 6, you should have:
- Two fully functional models (v4.1 and v5.0) with consistent data inputs and allocation logic
- Side-by-side reports that explain key differences between old and new taxonomy structures
- Stakeholder-reviewed reconciliation summaries for all major variance areas
- A validated and trusted v5.0 model ready for enterprise rollout
This step ensures that the transition to TBM v5.0 is not only technically correct, but also financially explainable and stakeholder-approved.
Step 7: Rollout and Cutover
Transition to TBM Taxonomy v5.0 with clarity, communication, and coordination
Once your v5.0 model has been validated through dual modeling, it’s time to fully transition from version 4.1. This step involves finalizing the technical cutover, communicating clearly to stakeholders, and ensuring readiness across reporting tools, planning processes, and documentation.
The success of this step depends on strong project coordination, end-user enablement, and governance discipline.
7.1 Finalize the Cutover Plan
Develop and document a clear, time-bound cutover plan that includes:
- Cutover date: When v5.0 becomes the official taxonomy for all reporting and planning
- Systems and scope: Specify which tools, dashboards, and models will be updated or retired
- Preconditions:
- Validation results signed off
- Stakeholder briefings completed
- Support resources published
- Fallback or contingency procedures (if needed)
Coordinate the cutover across teams responsible for:
- TBM cost modeling
- Reporting and dashboard management
- Data transformation and ETL pipelines
- Executive communications
7.2 Freeze and Archive v4.1 Assets
Preserve the integrity of historical data by locking down your v4.1 model and associated outputs:
- Freeze the v4.1 cost model in your TBM platform and disable further updates
- Label and archive dashboards (e.g., “Final FY23 – v4.1”) for reference and compliance
- Retain allocation and classification logic for auditability and retrospective analysis
- Document where structural breaks occur between versions (e.g., platform retirement, labor pool consolidation)
7.3 Transition Dashboards, Planning Tools, and Reports
Update all operational dashboards and stakeholder reports to reflect the new taxonomy:
- Replace taxonomy filters and KPIs with v5.0-aligned logic
- Update planning templates (e.g., budget forecasts, chargeback worksheets) to match new cost pool and tower structures
- Ensure cost drivers and report groupings align with reclassified data (e.g., Cloud under its own pool, Applications rolled into Services)
Deliver transition-ready dashboards that are:
- Labeled by taxonomy version
- Clearly structured by updated taxonomy layers (Cost Pool → Tower → Solution → Consumer)
- Paired with crosswalk documentation and FAQs
7.4 Deliver Stakeholder Enablement and Communication
Prepare end-users for the new structure with clear, practical support materials:
- Transition guides by role (e.g., Finance Analyst, CloudOps Lead, Product Owner)
- Glossary updates to reflect new taxonomy terms
- Annotated dashboards with in-line explanations or tooltips
- FAQs addressing structural changes, metric shifts, and reporting differences
- Live enablement sessions, office hours, or walkthrough recordings
Emphasize the value of the change, including:
- Better visibility into cloud, AI, and ESG costs
- Alignment with Agile, FinOps, and sustainability reporting
- Improved driver granularity and modeling accuracy
7.5 Launch Support and Monitor for Issues
After go-live, prepare to handle questions, resolve issues, and track adoption metrics:
- Open a support channel (Slack, Teams, shared inbox) for taxonomy-related questions
- Monitor:
- Dashboard usage and feedback
- Volume of unmapped or misclassified records
- Stakeholder satisfaction via short surveys or post-rollout check-ins
- Assign TBM analysts or system owners to:
- Resolve confusion over renamed objects or restructured views
- Clarify metric definitions and allocation changes
- Track and close any issues logged during rollout
What Success Looks Like
By the end of Step 7, you should have:
- Fully decommissioned your v4.1 model and transitioned reporting to v5.0
- All dashboards, metrics, and planning tools reflecting the new taxonomy
- End-users trained, supported, and informed
- A structured support mechanism to catch early issues and ensure adoption
- Stakeholders aligned and confident in using the new reporting views
This step turns your planning and validation into operational change. It marks the point where TBM Taxonomy v5.0 becomes the new standard for financial transparency and technology cost modeling.
Step 8: Post-Migration Monitoring and Optimization
Sustain taxonomy success through continuous improvement and adoption support
Going live with TBM Taxonomy v5.0 is not the end of the journey—it’s the start of an optimized, modernized TBM practice. In this step, you’ll monitor the performance of your new model, collect feedback, refine implementation decisions, and support evolving business needs.
8.1 Monitor Allocation Accuracy and Data Quality
Keep a close watch on how your updated cost model is functioning in practice:
- Track allocation behavior over the first few cycles:
- Are costs flowing to the correct towers, solutions, and consumers?
- Are new elements like Cloud Services, Smart Devices, or AI sub-towers being populated correctly?
- Audit for anomalies:
- Unexplained spikes or drops in tower or solution spend
- Large volumes in fallback categories (e.g., Other Operating)
- Missing or null mappings in key classification fields
- Validate new driver behavior:
- Ensure telemetry- or usage-based drivers (e.g., for cloud, AI, labor) are refreshing and resolving correctly
8.2 Collect and Analyze Stakeholder Feedback
Engage your end-users to understand how the new model is performing from their perspective:
- Feedback mechanisms:
- Surveys embedded in dashboards or sent post-rollout
- User feedback forms or embedded comment tools
- Regular check-ins with Finance, CloudOps, Product, and BU leads
- What to ask:
- Are the new dashboards intuitive?
- Can users find the cost views they need?
- Are metric definitions clear and consistent?
- Do users trust the new allocation results?
8.3 Tune Allocation Rules and Classification Logic
Based on user input, data monitoring, and early usage patterns:
- Refine allocation drivers:
- Replace low-trust or static drivers with dynamic or more granular alternatives
- Revisit classification rules:
- Improve tagging for cloud spend, managed services, or ESG systems
- Adjust business rules that incorrectly assign vendors or services
- Simplify where needed:
- Remove overly complex or redundant mappings that confuse stakeholders
8.4 Track Adoption and Enablement Metrics
Measure the impact of your taxonomy rollout through usage and engagement KPIs:
- Adoption indicators:
- Percentage of users who have switched to v5.0 dashboards
- Volume of usage per dashboard or role
- Decline in v4.1 dashboard access
- Enablement indicators:
- Number of stakeholders trained or briefed
- Frequency and type of support requests
- Success rate of issue resolution
8.5 Prepare for Future Enhancements and Scaling
The modular design of TBM Taxonomy v5.0 allows for incremental adoption of advanced use cases and integrations. Plan for future enhancements such as:
- Deeper FinOps integration using cloud-native tagging and telemetry
- Expanded ESG reporting with solution-level environmental cost tracking
- Agile or product-centric costing using Consumer layer value stream dimensions
- Strategic Portfolio Management (SPM) alignment with investment roll-ups across products, platforms, and capabilities
What Success Looks Like
By the end of Step 8, you should have:
- A stable, trusted v5.0 implementation operating at full scale
- Dashboards and reports that stakeholders use and understand
- Feedback loops and QA processes supporting continual improvement
- High taxonomy adoption across key roles and reports
- A roadmap for advanced modeling aligned with business strategy
This final step ensures that TBM Taxonomy v5.0 is not just implemented—it is optimized, trusted, and evolving with your organization.
What You’ve Accomplished
You’ve successfully modernized your TBM model. Here’s what that means:
By completing the 8-step migration process to TBM Taxonomy v5.0, your organization has:
- Translated legacy cost classifications into a modern, modular taxonomy aligned with today’s technology environment
- Implemented cleaner, more precise allocation logic using better drivers and structured flows
- Preserved financial comparability across versions and built stakeholder confidence through validation
- Embedded continuous improvement practices into your data pipelines and reporting systems
- Positioned your TBM practice for deeper integration with FinOps, Agile, ESG, and strategic portfolio management
This transformation isn’t just a technical upgrade—it’s a strategic investment in better decision-making, transparency, and cost governance.
Next Steps
Now that you’ve completed your migration to TBM Taxonomy v5.0, you’re well positioned to take your TBM practice further. Join a peer community focused on maturity improvement, adoption strategies, or financial leadership in technology. Explore the TBM Framework to align your efforts with a broader model of value delivery. Consider implementing a taxonomy extension tailored to your industry or operating model. Attend an upcoming TBM Council event to hear how others are applying the new taxonomy. Be sure to check out our other TBM modeling guides to support initiatives like showback, service costing, and cloud optimization. And if you’re looking to stay sharp, dive into our ongoing Research or visit the Hot Topics page to explore the latest trends shaping the future of TBM.
Join the TBM community: where innovators and leaders converge
The TBM Council is your gateway to a treasure trove of knowledge: think cutting-edge research papers, insightful case studies, and vibrant community forums where you can exchange ideas, tackle challenges, and celebrate successes with fellow practitioners.
We’re calling on organizations and forward-thinking individuals to dive into the TBM community. Participate in our events, engage in our discussions, and tap into a vast reservoir of knowledge. This isn’t just about networking; it’s about contributing to and benefiting from the collective wisdom in navigating the dynamic world of cloud computing.
