TBM in the US Public Sector - Deloitte Danmarkinfo.deloitte.dk/rs/539-HCP-749/images/Suzanne...

TBM in the US Public Sector

Suzanne ChartolProgram Director, Federal

September 6, 2017

© 2017 Technology Business Management Council, All rights reserved (v2.5)1

Topics

What is TBM?

How is the U.S. Federal Government Adopting TBM?

Case in Point: State of Washington’s TBM Success Story


What is TBM?

UNDERSTAND OPTIONS,

COSTS & VALUE

MANAGE SUPPLY AND

DEMAND

TO ACCELERATE INNOVATION

MAKE COSTS

UNDERSTANDABLE TO

DRIVE

ACCOUNTABILITY

Technology Business Management, or TBM, defines a business model which enables IT to run

like a business. It is a decision-making framework for making informed trade-offs of the Cost,

Quality, and Value of IT services.


DevOps(Application Owner)

Manage Application Portfolio for Value

Service Owners(Infra Platforms)

▶ Infra cost by category?

▶ Unit cost compare to peers?

▶ Apps using non-standard

infra?

▶ EOL at-risk infra?

Show Efficiency and Justify Spend

CIO & IT Leaders

▶ IT spend on run vs change?

▶ Project spend on initiatives?

▶ Cost reduction progress?

▶ Spend by biz capability?

Make Fact-Based Decisions to Shift

Run to Grow

Business Relationship

Managers

▶ App, infra & labor breakdown?

▶ Levers to control spend?

▶ Align consumption with

needs?

▶ Track consumption changes?

Align Resources to Business Priorities

IT Finance

▶ What's fixed vs variable?

▶ Short term cost reduction

ops?

▶ Under-over recovery?

▶ Adjust service rates?

Establish Governance & Accountability

▶ Total cost of apps?

▶ Build versus run?

▶ Impact if decommissioned?

▶ Release failure rate?

Who is TBM For?


The Tools of TBM

TBM

FRAMEWORKTBM TAXONOMY TBM MODEL

TBM KPIs and

Metrics

GOVERNANCECOMMON

LANGUAGEAUTOMATION

DATA/QUESTIONS/

OUTCOMES


TBM Taxonomy V2.0 (High Level View)

Cost Pools

InternalServices

TelecomFacilities& Power

OutsideServices

InternalLabor

ExternalLabor

IT Towers

End User Application DeliveryIT

ManagementSecurity &

Compliance

OutputNetworkStorageComputeData Center

Services

Business Units or Business Capabilities

Business Unit or Business Capability





Bu

sine

ss View

Finan

ce V

iewIT V

iew

Delivery Services Platform Services Infrastructure Services

Business Application ServicesEnd User Services

SoftwareHardware Other

Emerging


U.S. Federal IT Spend

21%

8%

71%

DME Provisioned O&M

80,56

82,9684,86

86,56

50

55

60

65

70

75

80

85

90

2015 2016 2017 2018

Spend in $Billions

Source: itdashboard.gov

Annual Reported IT Spend Spend by Category


How We Got Here…1996 Clinger-Cohen Act

2009 Federal CIO Vivek Kundra > IT Dashboard

2013 FITARA Proposed

Meeting with Steve VanRoekel, Federal CIO

2014 DATA Act Passed

Meeting with Lisa Schlosser, Deputy Federal CIO

FITARA Enacted (within NDAA)

2015 Meetings with Federal CIOs

IT COST Commission Ratified (May, pictured above)

IT COST Commission Meetings Begin (June)

TBM Conference 2015 (October)

2016 IT COST Commission Meetings Conclude (April)

Report Issued (July)

2017 First Public Sector Interest Group Meeting (April)

White House Summit on TBM (July)


ITCC Report Recommendations

Adopt a standard TBM taxonomy, model

and management system for IT costs,

resources, and services

Employ a standard set of TBM metrics for

evaluating and managing cost-

effectiveness and for benchmarking IT

costs and performance on an annual basis

Establish a TBM office within each agency

or department

Set up a government-wide governance

board to facilitate adoption of TBM

practices throughout federal government


Journey to Transform Federal IT Reporting

TBM Transforms

CPIC reporting

CPIC

TBM

TBM becomes the

backbone for IT budget

data and enables

automation and use of

authoritative data

May 2015

IT COST

Commissi

on

Ratified

June 2015

IT COST

Commissi

on

Meetings

Begin

April 2016

IT COST

Commissi

on

Meetings

Conclude

July 2016

IT COST

Commissi

on Report

Issued

Sept.

2015

CPIC

Reform

Efforts

Begin

December

2015

CIO/CISO

Summit

Oct 2016

Triage

Report

Recomme

ndations

Nov 2016

TBM

Index

Survey

Briefing

(CIO/CFO

Councils)

Sept 2016

OMB M

Office

Coordinatio

n & CFO

Council

Meeting

Nov 2016

TBM

Executive

Steering

Committe

e KickOff

Dec 2016

TBM

Community

of Practice

KickOff

CPIC

Executive

Working

Group

KickOff July A-11

IT Budget

– Capital

Planning

Guidance

Released

July 2016

CPIC

Community

Training

July-Aug

Agency 1:1

Training

Dec 2016

Feedback &

Look Ahead

Jan 2017

CPIC CoP &

Workgroup

KickOff

Sept-Dec 2016

Support Agency

Submissions

and Analyze

Data

Nov-Dec

2016

USSM &

Provider

Council

Reoccurring

CPIC

Community of

Practice

Meetings and

workgroups to

develop FY

2019 Guidance

Reoccurring

TBM

Executive

Steering

Committee

and

Community of

Interest

Meetings

Source: OMB, TBM Conference 2016


Federal Adoption Support

Community of Practice (CoP) - monthly● Agency practitioners: represent early adopters, pilot agencies● Began in Dec 2016

Common obstacles:

● Accuracy of current data● Culture change needed to change focus towards managing IT as a business, not just a

technical store● Socialization with other business functions (CFO/Budget, Acquisition)● Existing contracts do not provide enough data to inform TBM taxonomy● Budget constraints and cost of TBM vehicle

Executive Steering Committee (ESC) – bi-monthly ● Determine integrated approach for federal-wide strategy ● Began in November 2016

10


Successes Produce accurate data needed for the legislatively-

mandated IT spend report and explain trends;

Classify nearly all of the state’s previously “undefined” IT spending;

Track financials and make corrections before month-end, eliminating the need for more process-heavy changes;

Demonstrate how state IT spend as a percentage of state revenue compares to the industry average;

Improve hiring decisions based on identified IT needs rather than guesses;

Compare spend across agencies to identify opportunities to optimize spend and value trade-offs;

Spend taxpayer dollars more efficiently by evaluating the true cost for services and basing fees on those amounts

State of Washington – Case in Point

TBM Timeline

2010

2012

2014

2017

Legislation Enacted

Initial Transparency Effort

and tool selection

Key Pivot to the TBM Taxonomy

Today: Successful Program

in Action

http://ocio.wa.gov/programs/technology-business-management-tbm


How do I get started with TBM?

Adopt the Taxonomy as a starting point

Establish your “TBM Office”

Who will own your TBM program?

Which stakeholders will you involve?

Start simple with the data you have today

Prioritize 2-3 business / strategic challenges around which you will drive

your program

“I made the last decision [to move to software-as-a service] based on my gut.

I’m tired of using my gut – I want to use data to make decisions.”

—Federal CIO


For more information

Technology Business Management

Book

Join the TBM Council (no cost)

www.tbmcouncil.org

TBM Annual Events

TBM Conference, Las Vegas Nov 6-9

European Summit, Spring 2018

http://www.tbmcouncil.org/

Appendix


TBM Council Board of Directors

Collaboration | Education | Standards

The TBM Council is a non-profit organization

dedicated to advancing the discipline of

managing the business of IT

3,400+

Members

45%

CXOs

40%

I&O & Finance

Who Is The TBM Council?

Larry Godec

SVP & CIO

First American

Financial

Sunny Gupta

CEO

Apptio

Guillermo Diaz

SVP & CIO, IT

Cisco

Ralph Loura

Global CTO

Rodan + Fields

Jim Scholefield

Global CIO

Nike

Phuong Tram

CIO

DuPont

George Westerman

Principal Research Scientist

MIT Center for Digital

Business

Debra Bailey

CIO

Nationwide Building

Society

Brian Adams

Former CIO

Worley Parsons

James LaPlaine

CIO

AOL

Anil Cheriyan

EVP & CIO

SunTrust Banks

Tom Murphy

Univ. CIO & VP, IT

University of

Pennsylvania

Greg Morrison

SVP & CIO

Cox Enterprises

Jim DuBois

CIO

Microsoft

Rhonda Gass

VP & CIO

Stanley Black & Decker, Inc.

Mike Brady

Global CTO

AIG

Mike Brown

VP, IT

ExxonMobil

Trevor Schulze

CIO

Micron

Carman Wenkoff

CIO

Subway Restaurants


Cost Pools and Towers Phased Implementation


The Multi-Billion Dollar Opportunity

$7.3 billion decline in DME since 2010

5,233 of ~7,000 IT investments are purely O&M

TBM analysis reveals $5.8 billion savings potential

What could we do with the money?

TBM in the US Public Sector - Deloitte Danmarkinfo.deloitte.dk/rs/539-HCP-749/images/Suzanne...

Documents

Transcript of TBM in the US Public Sector - Deloitte Danmarkinfo.deloitte.dk/rs/539-HCP-749/images/Suzanne...