Corporate budgeting has long been a tedious and time-consuming process, often involving countless spreadsheets, emails, and meetings. However, with the rise of technology business management (TBM), the financial management of companies is being revolutionized like never before.
TBM is a framework that helps organizations manage and optimize their IT spending. However, its capabilities go beyond just IT cost management. It provides a holistic view of an organization’s financial performance and helps allocate resources effectively by showing how IT spending impacts business outcomes.
Traditionally, financial planning and analysis (FP&A) teams work with the IT department and other stakeholders to create annual budgets. However, this process can be highly manual, error-prone, and often takes months to complete. With TBM, FP&A teams can leverage automated tools to access real-time data, which enables them to model multiple scenarios and make informed decisions.
One of the significant benefits of TBM is its ability to provide transparency into IT spending. This knowledge is crucial because IT spending is often the second-largest expense for many companies after employee salaries. TBM helps organizations know how much money they are spending on each IT service, and which service is providing the most value to the business.
TBM also makes it easy for stakeholders to visualize how investments in IT contribute to business outcomes. This is useful when presenting to board members or investors. By understanding the connection between IT spending and business outcomes, stakeholders can make better decisions on how to allocate resources and ensure that they are investing in the areas that will generate the most significant returns.
Moreover, TBM also benefits IT departments by shifting their focus from cost-cutting to value creation. By understanding the business value of IT services, IT departments can focus on improving services that provide the most significant value to the business, rather than just reducing costs. TBM can also help IT departments prioritize their investments, ensure that they are aligned with business goals, and demonstrate the value they are delivering.
In a nutshell, technology business management is transforming corporate budgeting by providing better insights into IT spending, enabling informed decision-making, and aligning IT investments with business outcomes. With TBM, financial planning and analysis teams can streamline their budgeting process, reduce errors and make more informed decisions. As businesses continue to adopt TBM, it’s clear that financial management will be revolutionized like never before.