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TECHNOLOGY BUSINESS MANAGEMENT


A CIO Council Priority

FITARA AND IT SPENDING TRANSPARENCY

The Federal IT Acquisition Reform Act (FITARA) enhanced the authority of Federal Agency CIOs to manage IT spending. However, CIOs are often lack comprehensive, detailed information on IT spending in their agencies. For example, current agency budgets may categorize outsourced network maintenance and software development services as into the same category in their acquisition and financial management systems. This obscures the true costs of each these distinct IT activities and ultimately hinders the ability of the CIO to manage IT costs. Additionally, current investment categorization methods vary from one Federal Agency to the next, making it difficult for CIOs to benchmark their agency against another and against the private sector.


TECHNOLOGY BUSINESS MANAGEMENT

Technology Business Management (TBM) is an IT management framework that implements a standard IT spend taxonomy. TBM enables organizations to disaggregate IT spending into smaller, consistent categories to provide CIOs and other C-suite executives with a more accurate and detailed understanding of their organization’s IT costs. This allows CIOs to identify duplicative or unnecessary spending and to make better informed decisions regarding future investments.


WHY TBM?

TBM increases insights into IT metrics that drive informed IT, financial, acquisition, and human resource decisions. Increased cost transparency benefits them all. The taxonomy organizes IT spending into three views - Finance, IT, and Business - that help stakeholders across the enterprise understand how IT resources are applied in the agency to support the mission. The standard taxonomy also allows agencies to benchmark their spending not only against other Federal Agencies, but also against businesses in the private sector.


THE TBM FRAMEWORK

Image of TBM Framework


THE CIO COUNCIL SUPPORTS COST TRANSPARENCY AND REDUCED REPORTING BURDENS

Federal Agencies are currently at various stages of implementing TBM. The CIO Council, the General Services Administration (GSA), and the Office of the Federal CIO (OFCIO) are committed to guiding agency adoption of TBM. Employing a phased approach to implementation, these three offices have convened a community of practice as a resource for agencies in early stages of implementation to trade best practices and learn from each other. OFCIO and the CIO Council have also established a TBM Executive Steering Committee to build support across the Government’s C-suites. As part of the FY 2019 IT Budget - Capital Planning Guidance, agencies have been requested to report certain investment data as TBM Cost Pool and IT Tower data. This initial TBM-structured data request is intended to enable OFCIO to assist agencies in their continued TBM implementation process. Over the next few fiscal years, phased implementation of TBM will continue as OFCIO, the CIO Council, and Federal Agencies identify and close data gaps, incrementally moving toward Government-wide adoption of TBM. Learn about the TBM Community of Practice here.