Technology Cost Management Can Inform Appropriate Technology Investments
Technology Cost Management
“What is the fully loaded cost to provide one unit of this service?” Every organization needs to be able to answer this question for all of the technology services it consumes or provides. Too often technology cost management looks at total spending but does not identify the services that are supported by the spending. This point of view doesn’t support strategic decisions such as whether to buy or build technology services. It doesn’t allow comparisons between providing a service in-house, or via a Software as a Service (SaaS) provider. Another aspect of technology cost management is to identify how much spending is going to keep the lights on (run), versus how much is used to increase existing capacity (grow), versus how much is spent on develop new capabilities (transform). For most organizations, there is a need to shift technology spending from run to grow and transform.
Benefits
What we do
Outcomes
Clear Understanding of What Services Cost
Technology spending typically is not well understood. Aerie Partners follows the proven Technology Business Management (TBM) Council’s methodologies to provide clarity. TBM isn’t just about managing cost—it’s about managing technology as a business asset. It brings together technology, finance, and business leaders with a common language, a shared model, and actionable insights to align investments with outcomes that matter: innovation, efficiency, resilience, and experience.
Better Technology Decisions
With insights as to the per-unit, fully-loaded cost for each IT service, technology investment decisions become easier. By looking at the cost of a service relative to the business/mission value it provides, technology decisions can be framed as how well they will meet business or mission objectives for required investment. This shifts the decision from “do we want to spend $x on this technology?” to “are we willing to spend $x to get these business outcomes?”
Balanced Technology Spending
Our approach is specifically designed to ensure that as cost decisions are made, they are made strategically so as not to reduce your organizations ability to grow and transform. We identify spending as either run, grow, or transform costs and then put a plan into place to direct spending from run costs to grow and transform investments.
Determine Scope of Project Based on Desired Outcomes
Aerie Partners follows the Technology Business Management (TBM) Council’s methodologies. We will work with you to determine the scope of the engagement – are you looking for quick insights, a full plan to implement TBM, or something in between?
Design Project Plan
Aerie Partners has several tools and accelerators that can be used to achieve the project goals. We will design a plan and engage the tools that are needed to realize the project goals.
Execute Plan
Once the plan is agreed upon, we will execute the plan. Regular check points will allow course corrections based on what is uncovered as the plan progresses.
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