GSA cut 17.8% from its IT budget using Apptio’s TBM solution. Discover how.
The $228 million fund is envisioned as "a long-term, self-sustaining mechanism for Federal agencies to regularly refresh outdated networks and systems with the newest technologies and security capabilities." Agencies pay back into the fund with savings enjoyed from transitions to modernized and managed services
One of the key ways IT modernization will save federal agencies money is through the consolidation and optimization of data centers, which is one of the main objectives outlined in the Federal IT Acquisition Reform Act, or FITARA. Success in IT modernization will rely heavily on improving FITARA scores in that area.
The Wall Street Journal reports IT modernization will also rely on CIOs’ willingness to tie federal tech modernization to business outcomes using a Technology Business Management (TBM) solution. GSA CIO David Shive says in the interview:
He’s [David Shive] confident that basing federal technology investments on concrete business outcomes, rather than mere IT performance improvements, will lead to cost reductions and free up capital for innovation. By using this approach, known as Technology Business Management (TBM), GSA has cut 17.8% from its IT budget over the past four years, or well over $100 million recurring per year.
To help CIOs understand how TBM can support IT modernization, we’ve pulled together the 10 core tenets of TBM and a list of ways TBM can improve your FITARA scorecard and save your agency money.
TBM Supports IT Modernization
Nearly two years after passage of FITARA, federal CIOs struggle with reporting out and communicating IT challenges and the value of IT investments. Now, on the heels of the GSA’s IT modernization fund, even more pressure is mounting to tie IT investments to business outcomes.
In a recent report, 55% of public-sector leaders say they struggle to implement FITARA requirements.
TBM enables IT to manage its business, deliver cost-effective services and partner to create value. It is a decision-making framework for making fact-based tradeoffs of cost, consumption, capacity, performance, features, benefits, and risk of IT services.
You can download the full report on how to use TBM to clearly communicate government IT investments here. This infographic on “FITARA Implementation and How Government Communicates IT Costs” also does a good job of illustrating the full benefits of TBM for public-sector CIOs.
10 Core Tenets of Technology Business Management
Position for Value
Define what you deliver in terms of business capabilities that are understood and valued by your business unit partners, so you can work together to improve business outcomes.
Execute a strategic roadmap for TBM maturity by integrating TBM into your day-to-day processes and thinking, so that TBM drives every value conversation with your peers.
Translate your spending, consumption, and capacity into meaningful perspectives for technology and business decision-makers.
Shape Business Demand
Communicate costs and consumption to business units to drive informed trade-off decisions and better consumption behavior.
Deliver Value for Money
Maximize value and demonstrate industry-comparable cost-effectiveness for services and innovation you provide.
Plan & Govern
Collaborate to align your annual budget and resource plans to strategic business priorities and manage to the plan.
Cost for Performance
Deliver technology, services, and projects efficiently to the business.
Investment in Innovation
Allocate adequate resources one ew and enhanced services and on business innovation.
Optimize portfolios to deliver the most value for the level of spending.
Help the business respond quickly to market opportunities or threats.
Apptio helps federal CIOs meet the four core FITARA scorecard metrics
Apptio’s TBM applications meet the needs of federal IT leaders seeking an accurate, best practice solution to address FITARA priorities and IT modernization. They are built around a standard TBM taxonomy of common IT functions and include core analytics that help you address the four core GAO scorecard metrics:
- Data center consolidation: Identify under-utilized IT assets and data centers for optimization, consolidation, and transfer to lower-cost IT resources, such as virtualized and cloud environments.
- IT portfolio review: Drive meaningful spend analysis of IT resources by analyzing IT efficiency and effectiveness, and identifying potential waste and duplication.
- Risk assessment transparency: Promote better transparency in “at-risk” IT projects and identify causes for risk.
- Incremental project development: Demonstrate value and ROI through new IT functionality delivered to IT users at the mandated 6 and 12-month intervals.
Download the full report on how to boost your FITARA scorecard using TBM here.
Are You Prepared? Apptio Can Help
Whether you want more information on how to kick-start FITARA or if you just need to better understand your IT costs, Apptio can help. A strong foundation is critical to your path to FITARA. Apptio provides the cost transparency, reporting and change management building blocks essential for FITARA success.