2023 TBM Council Awards
TBM Pacesetter -
Two years into their TBM journey, Enbridge has delivered impressive results. By leveraging their TBM system financial reporting efficiency drastically improved, automating what used to be a labor-intensive, error-prone process. Additionally, Enbridge’s technology modernization program shifted 70% of workloads to the public cloud, reducing emissions by 50%. Streamlining data centers from 17 to seven cut technical debt by 50%. Their cloud’s scalability facilitated faster integration of eight acquisitions, saving time and costs. Overall, Enbridge improved IT infrastructure cost efficiency by 25% and strategically managed cloud expenses, resulting in significant savings.
Cloud Transformation -
Iress faced the challenge of migrating to the cloud and optimizing its costs efficiently. The lack of cost visibility in their on-premise environment, combined with the need to empower engineers to manage cloud expenses, led them to invest in Technology Business Management (TBM). By leveraging TBM and FinOps practices in tandem, Iress transformed its cloud consumption, achieved 80% cost savings in demo environments, identified 30-40% cost savings by modernizing products from on-premise, and enabled innovation. Additionally, Iress adapted migration plans to eliminate 35% of upfront costs and saved around 10% of the total working time across all engineering teams.
Business Innovation -
Leveraging TBM, Wells Fargo has aligned 100% of over $3B in technology spend to 24 products within their product taxonomy. The CTO organization has established prices for many of these products. These prices are leveraged to influence consumer behavior and encourage users to move towards modern platforms and migrate away from legacy systems. Additionally, the team introduced concepts that helped balance the fixed nature of new, strategic offerings and ensuring that early adopters are unfairly charged.
Business Optimization -
Red Hat has made significant strides in optimizing its business processes using TBM since its implementation in 2017. The company successfully identified 117 unique efficiency opportunities in 2023 alone, reducing their non-labor run rate by a notable 13%. An area of significant achievement is Application License Management, which led to substantial savings of $1 million after the successful onboarding of 14 applications. The company projects additional savings of $2 million in the upcoming year, demonstrating TBM as a key enabler for optimization.
Service Excellence -
Deutsche Bank uses TBM reports to distribute accurate and consistent data to all levels. By tailoring reporting to what each viewer can influence, every user is able to contribute to cost management. Business CIOs track spend to forecast, product managers optimize unit cost pricing, application owners review granular cost and usage data, and even end users cancel services they no longer need. A consistent data set with views from high level down to individual resources also enables tracking of key strategic initiatives such as cloud migration and modernization. Deutsche Bank’s consumptive self-service Bill of IT, for over 400 services, enabled customers to see their own consumption, resulting in 3M Euros in savings by end users.
Service Excellence -
NatWest utilizes TBM to streamline service delivery and ensure cost efficiency in their technology services. The alignment of Service Management and TBM enables NatWest to model the financial impact of any service changes, allowing for informed decision-making. Furthermore, TBM has reduced the planning and forecast process by 80%, from 6 months to 1 month, improved accuracy for a multi-currency, multi-billion dollar forecast to 99%, and successfully reduced challenges against 2023 budget allocations by 72%.
IT Financial Leadership -
Markel began their TBM journey with a challenge to enable transparency in IT spend, which had previously been a black box. Now every IT expenditure has an owner and a business context. Business partners understand how their actions affect IT spend, to the point where the data is used in quarterly accountability reviews where they present their IT consumption to the Executive Steering Committee. Additionally, TBM has helped merge redundant platforms, allowing $50 million in Run-the-Business expense to be redirected to Grow-the-Business investment and reduced 10,000 person hours related to IT financial management processes.
Public Sector Excellence -
The fixed recharge model at eHealth NSW left customers with limited transparency into their IT spend and no ability to influence it. TBM was established as a key strategic enabler for Financial and Commercial Acuity across all aspects of the IT landscape. Delivering a transparent Bill of IT for the 235 services. Within 15 months, eHealth NSW established credibility for IT and fostered partnership in demand shaping for the 100+ consumption driven services. This helped further shift an adversarial relationship toward partnership.
Agile Evolution -
The implementation of the TBM framework at McGraw-Hill Education has led to significant efficiency gains and improved decision-making. It has saved approximately 40 director-level hours per month by empowering team leads to self-manage their budgets, and McGraw-Hill has found success leveraging the TBM framework support both agile and waterfall teams and provide the true, total cost of product development.
Judges Choice -
Through the strategic use of TBM methodologies, UPS has been able to optimize technology spend by leveraging application TCO, and balancing Run vs. Grow investment mix. These measures guide strategic decisions, drive efficiencies, and enable transparency. One major win was an $11M reduction on a 3-year contract, following successful contract renegotiations based on historical trend data. The company’s use of TBM has fostered a culture of transparency and accountability, with application teams held responsible for their public cloud consumption.