\u201cHow\u2019s business?\u201d That\u2019s a question more appropriate for CIOs to answer than ever. We\u2019re in the age of digital transformation, with IT moving away from its traditional role as cost center and responsible for a growing, increasingly influential budget. Today\u2019s strategic CIOs and IT leaders are focused squarely on increasing efficiency, improving business processes, and delivering reliable IT services. As a result, they need to run IT as a business where creating and proving value is the highest priority \u2014 with integrated insight into the cost, quality, performance, and value of their services.\u00a0\nOf course, putting IT value first \u2014 before spending \u2014\u00a0is no easy task, requiring a significant transformation within the IT organization. Taking action around such issues as cost transparency, progressive benchmarking, and tracing costs to specific business objectives may not come as naturally to the average IT leader as it does to the CFO and the accounting department.\u00a0 It is these types of issues that drove the development of today\u2019s internationally recognized discipline of Technology Business Management (TBM), with the goal of guiding IT leaders towards the management of IT in a fact-based, customer-focused way.\nKPMG\u2019s approach to TBM revolves around a framework of the right people, processes, and technology to enable companies to operate IT as a business, in turn unlocking the greatest value from its investments. This approach can create three outcome-based capabilities, built on the foundation of financial transparency modeling, that include: IT planning and budgeting, IT funding and service charging, and IT financial analytics. With the resulting improved visibility into costs and performance data, organizations can make more informed, fact-based technology decisions and better communication the value of IT services across the entire organization.\u00a0\n\u201cWe use our TBM framework as a platform that serves as a guide and a roadmap toward providing business value from IT \u2014 it\u2019s a way to align your costs with what IT delivers as value,\u201d says Jason Byrd, advisory managing director at KPMG, LLP (KPMG). \u201cTBM can be an organization\u2019s discussion facilitator that begins with very specific use cases in mind. It\u2019s not just about hooking data points together and modeling for modeling\u2019s sake; the value of what TBM can really do is take the foundational engine of modeling and build on that toward the other three key capabilities.\u201d\nByrd adds, \u201cFor the past five years, KPMG\u2019s framework has helped organizations understand how the practice of TBM is maturing, highlighting the challenges of the TBM journey and measuring organizations on their progress. Through our Global TBM Survey, KPMG has gathered and analyzed data from organizations around the globe, analyzing how they perform against key capabilities for TBM success and determining which companies have achieved the greatest results in generating true IT value for the business.\u201d\nA Core Discovery from the 2016 KPMG Global TBM Survey\nThe core finding from the 2016 survey reveals that TBM disciplines can play a pivotal role in beginning and guiding the business-minded IT transformation. With the right metrics aligned across the entire organization and presented in a language that the boardroom and executives \u00a0\u00a0can understand, TBM can deliver a range of benefits \u2014 from improving the credibility of IT as a service provider and fostering better partnerships through data-driven strategies, to understanding portfolio performance relative to expectations and improved budget-cycle accuracy.\nBut what defines TBM proficiency? What are the success metrics that prove that following the TBM path is beneficial? As part of the survey, KPMG created a TBM Proficiency Index based on how organizations perform against a set of objectives to achieve successful outcomes, such as:\nDriving IT Operational Transparency\n\nIs IT cost information accurate and readily available?\nIs there clear visibility into IT spend?\nIs there an accurate bill of IT for business spend distribution?\n\nDelivering IT Operational Success\u00a0\n\nDo technology cost structures impede rapid response to changing business demands?\nAre there reduced operating costs and increased effectiveness in IT spend control?\nIs effective IT planning, budgeting, and forecasting supported by transparency?\u00a0\n\nDemonstrating Business Value\n\nAre business stakeholders able to understand the value of IT?\nIs there clear and demonstrable business return on IT spend?\nDo senior business leaders rely on data more than opinions to make key decisions?\n\nThis year\u2019s Global TBM Survey found that more than 55 percent of respondents have achieved some repeatable success through TBM in driving visibility into IT spend, while reducing operational costs and increasing spend control.\u00a0\nIn addition, 30 percent of respondents have demonstrated delivery of true business value. \u201cSome organizations begin their modeling and assume that\u2019s the end of the story,\u201d says Byrd. \u201cBut really, that\u2019s just the foundation: You should think about your business-driven use cases at the onset of your journey and ask, what you are going to do with this? What is the end game?\u201d\nTBM Leaders \u2014 Ahead of the Pack\nFifteen percent of surveyed organizations have a TBM Proficiency Index score that puts them ahead of the rest \u2013 as such, they are referred to as TBM Leaders. One important common element: they manage IT through a service lens, driving their ability to consistently deliver business value through IT. They realize it\u2019s not just about cutting costs; it\u2019s also about aligning the portfolio with the business strategy and linking IT costs to value.\nTBM Leaders use service management tools to collect and maintain the data accuracy of service consumption information, which helps allocate IT costs, the survey found. They are systematic about reviewing their service portfolios and assessing their structure and management, and make it very clear to their business partners what services they offer.\u00a0\u00a0\nAmong those organizations identified as TBM leaders, the CIO is also clearly in charge of achieving TBM success. The CIO has a unique vantage point, with an intimate knowledge of IT operations and how it needs to align with business processes. The CIOs are the ones with the most impact, and they can articulate the value of IT in ways that appeal to business partners \u2014 one of the biggest benefits of TBM.\nOverall, the survey found no real difference between TBM Leaders and other organizations as far as what they consider important to driving TBM success. The biggest difference is in execution. TBM Leaders can execute on their TBM priorities and achieve their objectives \u2014 but the rest fall short of their goals.\nReady to Follow the TBM Path?\nTBM is a long-term, multi-step process that moves a business towards sustained value over time. Are you ready to begin your TBM journey, or take your TBM efforts to the next level? Learn more about the KPMG TBM Proficiency Assessment or how KPMG TBM services can help your organization add IT value to the business here.