The Federal IT Acquisition Reform Act (FITARA) has enhanced the authority of Federal Agency CIOs to manage their IT spending. If CIOs lack detailed information when categorizing their IT spending, it can obscure the true cost of distinct IT activities and ultimately hinder the ability of the CIO to manage and benchmark costs. Technology Business Management (TBM) is an IT management framework that implements a standard spend taxonomy. TBM permits organizations to classify their IT spending into smaller, more consistent categories. This provides CIOs and their C-suite executives with a more accurate and detailed understanding of their IT costs.
Implementing TBM will increase insight into IT metrics that drive informed IT, financial, acquisition, and human resource decisions. The taxonomy organizes IT spending into Finance, IT, and Business to create a transparent understanding of how the resources are applied. The CIO Council, the General Services Administration (GSA), and the Office of the Federal CIO (OFCIO) are committed to guiding agency adoption of TBM. Over the next few fiscal years, phased implementation of TBM will continue which will help identify and close data gaps. Proven IT Finance has a proven TBM methodology that generates and optimizes a taxonomy that not only creates cost transparency, but makes it clear how IT investments link to operating decisions.