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TBM Adoption Open Forum: Mapping Technology Costs to TBM Resource Towers
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TBM Adoption Open Forum: Mapping Technology Costs to TBM Resource Towers

TBM Tower Layer Implementation Guide Overview

Introduction to the Session

  • The session is presented by the TBM adoption strategy community, featuring members Stephanie and Dominic.
  • Guides for members will be shared in two weeks, emphasizing the importance of TBM adoption across various industries.

Adoption Work Group Details

  • The mission of the adoption work group is to empower individuals regardless of their industry or position.
  • Members interested in volunteering can reach out via email to participate in discussions and initiatives related to TBM adoption.

Understanding Resource Towers and Cost Pools

Conceptual Framework

  • The discussion focuses on mapping costs and resources to towers, building upon previous sessions about cost pools.
  • Cost pools represent what was purchased (e.g., staffing, hardware), while resource towers indicate where that spend is utilized within technology functions.

Importance of Taxonomy

  • Different layers such as cost pools and towers serve distinct purposes; understanding these helps tailor insights for specific audiences or questions.
  • Regardless of the tools used (Excel or others), foundational activities remain consistent across implementations.

Data Gathering for TBM Implementation

Starting with Financial Data

  • Accurate data from accounting systems is crucial; it provides a comprehensive view of IT spending that must align across all layers in TBM.
  • Accounting categorizes expenses into buckets like personnel, hardware, software, etc., which aids in standardizing views across organizations.

Analyzing Spend Categories

  • Each category requires different approaches for analysis; invoices from vendors are essential for understanding software-related expenditures.
  • Labor costs need collaboration with HR to approximate team contributions towards resource towers since they are not itemized per employee in accounting data.

Mapping Costs to Towers

Approaching Classification Challenges

  • Not every line item needs detailed scrutiny; establishing a materiality threshold can streamline focus on significant expenditures while managing unknown categories effectively.
  • Mapping involves judgment calls based on available information; utilizing forums or community support can assist when uncertainties arise regarding classification decisions.

Quality Control Measures

  • Assigning confidence levels to classifications helps track quality over time; initial assignments may require adjustments as more information becomes available through ongoing research and inquiries with teams involved.

Building Relationships and Executive Sponsorship

Factors Influencing Implementation Timeframe

  • The complexity of an organization significantly impacts how long it takes to establish a first view of TBM; executive sponsorship plays a critical role in facilitating this process effectively.

Managing Unknown Variables

  • Organizations must assess their tolerance for ambiguity when dealing with unknown classifications during implementation phases; creating separate buckets for unknown items can help manage expectations around data completeness during early stages of TBM development.

This structured overview captures key insights from the transcript while providing timestamps for easy reference back to specific parts of the discussion.

Understanding Technology Business Management (TBM) with Zoom and AWS

Introduction to TBM and Tools

  • The speaker introduces the concept of Technology Business Management (TBM) using Zoom as a relatable example for organizations.
  • Discusses how data is collected for tools like Zoom, highlighting that it typically involves one or two lines in financial records due to its prepaid nature.

Mapping Costs in TBM

  • The speaker explains how invoices from procurement systems provide clarity on software usage, specifically mentioning Zoom's role in connecting employees globally.
  • Emphasizes the importance of categorizing software into appropriate towers within the TBM model, such as licensing sub-towers.

Universal Mapping Discussion

  • A participant raises a question about creating a universal mapping library for software vendors to streamline the mapping process across different organizations.
  • The speaker agrees that while some vendors like Zoom can be universally mapped, others with multiple solutions may complicate this approach.

Cloud Services Cost Mapping

  • Transitioning to AWS, the speaker outlines how to identify costs through general ledger transactions and billing files related to cloud services.
  • Highlights the significance of tagging strategies when purchasing services through platforms like Amazon’s marketplace.

Importance of Tagging Strategy

  • Discusses how effective tagging can bridge cost pools to resource towers, ensuring accurate tracking of expenses related to specific software or server capacities.
  • Stresses that understanding what was purchased is crucial for deeper analysis beyond just knowing it was software or server capacity.

Challenges in Vendor Purchases

  • Addresses potential difficulties in extracting detailed information from procurement systems regarding specific purchases made by organizations.

Tailoring Strategies Based on Organizational Needs

  • Each organization will have unique needs when implementing TBM; thus, careful analysis is required based on their structure and spending patterns.

Q&A Session Insights

  • Participants engage in discussions about differences between mapping use cases for AWS versus other frameworks like PHOPS.
  • A participant shares their organization's journey towards implementing taxonomy using cost center rollups for better IT cost aggregation.

Recommendations for Newcomers to TBM

  • New participants are encouraged to familiarize themselves with TBM taxonomy and consider joining the TBM Council for resources and networking opportunities.

Conclusion: Ownership of Mapping Responsibilities

  • The discussion concludes with insights on who should own the mapping responsibilities within an organization, emphasizing collaboration between finance and IT departments.
Video description

An insightful session on approaches to mapping technology costs to Technology Business Management (TBM) Resource Towers. This session is designed to help you discover how to leverage your business data to model cost to the next layer of your cost model. Our speakers will be presenting content mapped to TBM Taxonomy V5 and will provide tips and tricks that will make your journey smoother and more efficient. Key Highlights: Getting Started: Discover how to leverage your organization’s data to create mappings from cost pools to resource towers. We'll cover the basics, including identifying key data and creating alignments for modeling your organizations costs to the next layer of your TBM model. Learning from Others: Discover how other organizations are approaching this task. Gain insights into their strategies, challenges, and successes, and take away actionable tips to enhance your own modeling efforts. Whether you're new to TBM or looking to refine your existing processes, this forum offers valuable guidance and peer learning opportunities to optimize your financial clarity and operational efficiency.