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TurningIT
Investments Into
Business Outcomes
Chris Pick
CMO,Apptio
President,TBMCouncil
@chrismpick
March 19, 2014
VENTURE BACKED
SAAS BUSINESS
NONPROFIT CIO
TRADE ASSOCIATION
Shaping The Perspective
@chrismpick
@chrismpick
ITBUSINESS
What are my service options?
How much do they cost?
Are we investing IT dollars in
the right things?
How can we help bridge the divide
between our business and IT leaders?
What do our BUs need?
How do their needs translate
into our resource plans?
Are we spending IT dollars in
the right things?
FINANCE
Turning IT Investments Into Business Outcomes
@chrismpick
@chrismpick
The Market Narrative
@chrismpick
Managing New IT Requires A New Paradigm
Projects
Infrastructure
Business Services
IT Services | Apps
IT Business
Products are now
Hybrid Services
Front
Office
Back
Office
CIO’S NEW SCOPE
OF MANAGEMENT
@chrismpick
Deliver
Technology as a
(“Product”) Service
Shift to
Innovation/Value
While Optimize
“Run”
Have
Build vs Buy
Expertise
Be a Trusted
&Agile Business
Partner
Requires CIOs To…
@chrismpick
But Without A Business Management System
?
Chief Financial
Officer
VP, Sale
s
VP,
Manufacturing
VP, Human
Resources
Chief Marketing
Officer
CIO
@chrismpick
DEDICATED TO RUNNING IT LIKE A BUSINESS
FOCUSED ON THE CIO’S BUSINESS SYSTEM
DELIVERED BY 5 SAAS APPLICATIONS
FOUNDED CIO “BUSINESS” COMMUNITY
PIONEERED IT TRANSPARENCY INTO TBM
Who’s Apptio?
@chrismpick
Founding of the TBM Council
@chrismpick
Visionary Leadership
Tim Campos
CIO
Facebook
Rebecca Jacoby
SVP & CIO
Cisco
Phuong Tram
CIO
DuPont
Robert Webb
CEO
TBM Council
Don Duet
Co-Head, Technology
Division
Goldman Sachs
Ralph Loura
CIO
The Clorox Company
Carol Zierhoffer
SVP & CIO
Bechtel Corporation
Chris Furst
EVP & CIO
Univision
Greg Morrison
SVP & CIO
Cox Enterprises
Debra Bailey
Global Services Director
Nationwide Building
Society
Larry Godec
SVP & CIO
First American
Tom Murphy
CIO
University of Pennsylvania
Mike Benson
EVP & CIO
DIRECTV
Sunny Gupta
Founder & CEO
Apptio
Jim Scholefield
CTO
The Coca-Cola Company
Creating a Lasting Community
@chrismpick
@chrismpick
1,100 Focused on Running IT Like a Business
The TBM Council Today
TelePresence
Summits
TBM Framework
& Benchmarks
Industry
Workgroups
Annual
Conference
@chrismpick
Mandated To Deliver Openly Available Tools
CompetencyWorkgroups
CFO
of IT
IT Planning
and Strategy
High-TechHealth Services Insurance EnergyCMEFSI
TBM Council Workgroups
Sponsored Industry Workgroups
@chrismpick
Finance View
Cost Sources
Cost Pools
Resources
Projects
Technology
Services
IT View
Business Services
Business
Capabilities
Business View
Standard Cost Model
Developed in conjunction and
with the support of the TBM
Council describes the optimal
method of analyzing and
understanding the flow of cost
throughout the IT organization.
@chrismpick
Resources
Projects
Technology
Services
IT View
Business Services
Business
Capabilities
Business View
Finance View
Cost Sources
Cost Pools
The Financial View
Allows analysis of all costs
including actual, budget and/or
forecasted costs for all
IT cost centers.
Cost centers are then aligned to
a standardized set of cost pools
to make the up the fundamental
elements of our model.
@chrismpick
Finance View
Cost Sources
Cost Pools
Business Services
Business
Capabilities
Business View
Resources
Projects
Technology
Services
IT View
The IT View
The foundational costs aligned
in the first phase are mapped
to a standard taxonomy of IT
resources enabling the first layer
of unit costing, benchmarking,
and other comparisons.
Resources are split into projects
aimed at creating or improving
services or technology services.
@chrismpick
Resources
Projects
Technology
Services
IT View
Finance View
Cost Sources
Cost Pools
Business Services
Business
Capabilities
Business View
The Business View
The business view describes
services and capabilities that are
developed in close collaboration
with business partners.
While services support business
processes, these services are
then combined into business
capabilities that drive specific
business outcomes.
@chrismpick
Business
Capabilities
• Demand to Delivery
• Business Capability
Based Planning
• Demand-based, integrated IT
spend management and
planning process
Business
Services
• Application Portfolio
Impact Analysis
• Business Services
Risk Impact Analysis
• Application Portfolio
Rationalization
• Service Portfolio
Investment Analysis
Technology
Services
• Technology Reuse
• Technology Standards
Governance
• Technology Rationalization
• Infrastructure Consolidation
• Infrastructure Re-Tiering
Resources
Enterprise Portfolio
Management
Technology Business
Management
@chrismpick
@chrismpick
Apptio’s TBM Solution
Data
Sources
End-Users
(OCIO)
SaaS
Platform
SaaS
Applications
CIO/CTO BUSINESS FINANCEIT OPS/STRATEGY
Apptio Cost
Transparency
Apptio Business
insights
Apptio IT
Benchmarking
Apptio
Bill of IT
Apptio IT
Planning
SELF-SERVICE ANALYTICS
ADAPTIVE DATA MANAGEMENT
TBM TAXONOMY COST & KPI MODELDATA MODEL
GL/
FIXED ASSETS
BUDGET HR ASSET/
CMDB
PPM SERVICE DESK MONITORING VENDORS PROVISIONING
@chrismpick
Out of the Box Reporting
@chrismpick
@chrismpick
@chrismpick
@chrismpick
ITBUSINESS
They get the best cost,
quality and value
for their investment.
They enable effective decision making to
maximize investments.
IT keeps pace with the
business’ need for agility
and drives innovation.
FINANCE
Turning IT Investments Into Business Outcomes
Making “IT” Sticky… A Superhero Story
@chrismpick
October 28-30, 2014
Fontainebleau Miami Beach
tbmconference.org
JOIN US @TBM2014
@chrismpick

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Troux 2014 - Apptio Keynote "Turning IT Investments Into Business Outcomes"

  • 1. TurningIT Investments Into Business Outcomes Chris Pick CMO,Apptio President,TBMCouncil @chrismpick March 19, 2014
  • 2. VENTURE BACKED SAAS BUSINESS NONPROFIT CIO TRADE ASSOCIATION Shaping The Perspective @chrismpick
  • 3. @chrismpick ITBUSINESS What are my service options? How much do they cost? Are we investing IT dollars in the right things? How can we help bridge the divide between our business and IT leaders? What do our BUs need? How do their needs translate into our resource plans? Are we spending IT dollars in the right things? FINANCE Turning IT Investments Into Business Outcomes
  • 6. @chrismpick Managing New IT Requires A New Paradigm Projects Infrastructure Business Services IT Services | Apps IT Business Products are now Hybrid Services Front Office Back Office CIO’S NEW SCOPE OF MANAGEMENT
  • 7. @chrismpick Deliver Technology as a (“Product”) Service Shift to Innovation/Value While Optimize “Run” Have Build vs Buy Expertise Be a Trusted &Agile Business Partner Requires CIOs To…
  • 8. @chrismpick But Without A Business Management System ? Chief Financial Officer VP, Sale s VP, Manufacturing VP, Human Resources Chief Marketing Officer CIO
  • 10. DEDICATED TO RUNNING IT LIKE A BUSINESS FOCUSED ON THE CIO’S BUSINESS SYSTEM DELIVERED BY 5 SAAS APPLICATIONS FOUNDED CIO “BUSINESS” COMMUNITY PIONEERED IT TRANSPARENCY INTO TBM Who’s Apptio? @chrismpick
  • 11. Founding of the TBM Council @chrismpick
  • 12. Visionary Leadership Tim Campos CIO Facebook Rebecca Jacoby SVP & CIO Cisco Phuong Tram CIO DuPont Robert Webb CEO TBM Council Don Duet Co-Head, Technology Division Goldman Sachs Ralph Loura CIO The Clorox Company Carol Zierhoffer SVP & CIO Bechtel Corporation Chris Furst EVP & CIO Univision Greg Morrison SVP & CIO Cox Enterprises Debra Bailey Global Services Director Nationwide Building Society Larry Godec SVP & CIO First American Tom Murphy CIO University of Pennsylvania Mike Benson EVP & CIO DIRECTV Sunny Gupta Founder & CEO Apptio Jim Scholefield CTO The Coca-Cola Company
  • 13. Creating a Lasting Community @chrismpick
  • 14. @chrismpick 1,100 Focused on Running IT Like a Business
  • 15. The TBM Council Today TelePresence Summits TBM Framework & Benchmarks Industry Workgroups Annual Conference @chrismpick Mandated To Deliver Openly Available Tools
  • 16. CompetencyWorkgroups CFO of IT IT Planning and Strategy High-TechHealth Services Insurance EnergyCMEFSI TBM Council Workgroups Sponsored Industry Workgroups @chrismpick
  • 17. Finance View Cost Sources Cost Pools Resources Projects Technology Services IT View Business Services Business Capabilities Business View Standard Cost Model Developed in conjunction and with the support of the TBM Council describes the optimal method of analyzing and understanding the flow of cost throughout the IT organization. @chrismpick
  • 18. Resources Projects Technology Services IT View Business Services Business Capabilities Business View Finance View Cost Sources Cost Pools The Financial View Allows analysis of all costs including actual, budget and/or forecasted costs for all IT cost centers. Cost centers are then aligned to a standardized set of cost pools to make the up the fundamental elements of our model. @chrismpick
  • 19. Finance View Cost Sources Cost Pools Business Services Business Capabilities Business View Resources Projects Technology Services IT View The IT View The foundational costs aligned in the first phase are mapped to a standard taxonomy of IT resources enabling the first layer of unit costing, benchmarking, and other comparisons. Resources are split into projects aimed at creating or improving services or technology services. @chrismpick
  • 20. Resources Projects Technology Services IT View Finance View Cost Sources Cost Pools Business Services Business Capabilities Business View The Business View The business view describes services and capabilities that are developed in close collaboration with business partners. While services support business processes, these services are then combined into business capabilities that drive specific business outcomes. @chrismpick
  • 21. Business Capabilities • Demand to Delivery • Business Capability Based Planning • Demand-based, integrated IT spend management and planning process Business Services • Application Portfolio Impact Analysis • Business Services Risk Impact Analysis • Application Portfolio Rationalization • Service Portfolio Investment Analysis Technology Services • Technology Reuse • Technology Standards Governance • Technology Rationalization • Infrastructure Consolidation • Infrastructure Re-Tiering Resources Enterprise Portfolio Management Technology Business Management @chrismpick
  • 22. @chrismpick Apptio’s TBM Solution Data Sources End-Users (OCIO) SaaS Platform SaaS Applications CIO/CTO BUSINESS FINANCEIT OPS/STRATEGY Apptio Cost Transparency Apptio Business insights Apptio IT Benchmarking Apptio Bill of IT Apptio IT Planning SELF-SERVICE ANALYTICS ADAPTIVE DATA MANAGEMENT TBM TAXONOMY COST & KPI MODELDATA MODEL GL/ FIXED ASSETS BUDGET HR ASSET/ CMDB PPM SERVICE DESK MONITORING VENDORS PROVISIONING
  • 23. @chrismpick Out of the Box Reporting
  • 27. @chrismpick ITBUSINESS They get the best cost, quality and value for their investment. They enable effective decision making to maximize investments. IT keeps pace with the business’ need for agility and drives innovation. FINANCE Turning IT Investments Into Business Outcomes
  • 28. Making “IT” Sticky… A Superhero Story @chrismpick
  • 29. October 28-30, 2014 Fontainebleau Miami Beach tbmconference.org JOIN US @TBM2014 @chrismpick

Editor's Notes

  • #3: ----- Meeting Notes (2/12/14 16:49) -----This should be portable media player.Make this slide build
  • #5: For CIOs: I’ve heard repeatedly from my CIO colleagues that, unlike their counterparts across the business (finance, marketing, sales, ops, etc.), CIOs have a harder time demonstrating business value. Why is that? CIOs are mired with complexity and ambiguous methods for measuring value. (share insights: e.g. bad tools, ambiguity, hard to measure, etc.)
  • #10: For CIOs: I’ve heard repeatedly from my CIO colleagues that, unlike their counterparts across the business (finance, marketing, sales, ops, etc.), CIOs have a harder time demonstrating business value. Why is that? CIOs are mired with complexity and ambiguous methods for measuring value. (share insights: e.g. bad tools, ambiguity, hard to measure, etc.)
  • #13: Notes on Board Members:All are current Apptio customers except Tom Murphy, Phuong Tram, Robert Webb and Carol Zierhoffer (and Sunny, of course)Tom has been a customer of Apptio twice: first while CIO of AmerisourceBergen and second while CIO of DaVita.Robert was a customer while he was the CIO of Hilton Worldwide. His former employers where he held CIO positions, Equifax and GE, are both Apptio customers (but after Rob’s departure).Carol was a customer while she was the CIO of Xerox.
  • #16: Notes on Board Members:All are current Apptio customers except Tom Murphy, Phuong Tram, Robert Webb and Carol Zierhoffer (and Sunny, of course)Tom has been a customer of Apptio twice: first while CIO of AmerisourceBergen and second while CIO of DaVita.Robert was a customer while he was the CIO of Hilton Worldwide. His former employers where he held CIO positions, Equifax and GE, are both Apptio customers (but after Rob’s departure).Carol was a customer while she was the CIO of Xerox.
  • #18: Apptio’s cost model, developed in conjunction and with the support of the TBM council describes the optimal method of analyzing and understanding the flow of cost throughout the IT organizationThe model is divided into three layers, each with elements and views specific to a core audience:FinanceITBusiness
  • #19: The Finance view allows analysis of all costs including actual, budget and/or forecasted costs for all IT cost centersCost centers are then aligned to a standardized set of cost pools to make the up the fundamental elements of our model
  • #20: In the IT layer, the foundational costs aligned in the first phase of the model are mapped to a standard taxonomy of IT resources – the ApptioTBM Unified Model (ATUM). The level enables the first layer of unit costing, benchmarking and other comparisonsThese resources are then split into projects aimed at creating or improving services, or technology services – the building blocks provided to business service owners
  • #21: At the top of the model, the business view describes services and capabilities that are developed in close collaboration with business partners.While services support business processes, these services are then combined into business capabilities that drive specific business outcomes.