Makati Business Club organized a business roundtable discussion about unlocking business value with AI-powered automation at the Fairmont Hotel Makati on September 18, 2024. The speakers were Tarun Kumar Kalra, VP and Head of Sales APAC at Apptio, an IBM Company, and David Sample, IT Specialist for Finance from ADB.
In today’s technology-driven world, businesses face increasing pressure to make their technology investments work harder and deliver better returns. For many, understanding how technology expenditures translate into business outcomes remains a challenge. This is where Technology Business Management (TBM) and FinOps come into play—frameworks designed to help organizations manage their tech budgets effectively.
A shining example of this approach is Apptio, a company recently acquired by IBM for $4.6 billion, which has built its success on helping enterprises gain transparency into their technology costs and drive better efficiency.
Here’s a closer look at some key takeaways from Apptio’s strategy that can benefit any organization looking to get the most out of their tech investments.
1. Cost Transparency and Visibility
A common issue for many organizations is a lack of visibility into how their technology dollars are spent. This can lead to unnecessary spending and underutilized resources, especially regarding cloud costs, which fluctuate based on usage. Many companies still rely on outdated systems like Excel to track these expenses. While tools like Excel can handle basic budgeting, they are not built to manage the complexity of modern tech spending.
Apptio’s TBM approach provides companies with real-time insights into their technology investments, giving them a clear understanding of where money is being spent and what value it’s driving. This cost transparency enables organizations to identify areas where they may be overspending and make informed decisions to reallocate resources toward more impactful technologies.
2. Data-Driven Decision-Making
Technology investments are significant, but many companies struggle to track the return on investment (ROI) from these tools. Apptio’s solution addresses this issue by enabling businesses to tie their technology costs directly to business outcomes, making it easier to evaluate what’s working and what’s not.
For example, an enterprise that invests heavily in cloud infrastructure can use Apptio’s system to measure the true cost of storage, processing, and maintenance. More importantly, they can assess how these costs contribute to business goals—whether it’s speeding up operations, improving customer service, or driving revenue. With this data, businesses can make smarter decisions about where to cut costs and where to invest more, ensuring every dollar spent on technology works as efficiently as possible.
3. Strategic Planning for Growth
Apptio’s approach isn’t just about managing current costs; it’s also about preparing for the future. With detailed visibility into tech spending, organizations can plan more effectively for growth. As highlighted in the transcript, forecasting and budgeting are essential components of Technology Business Management, and businesses that adopt these practices are better positioned to scale their technology investments in line with their broader growth strategies.
Whether a company is planning to expand its operations, introduce new digital products, or enhance its IT infrastructure, understanding its current technology spending trends provides a solid foundation for future planning. By aligning technology budgets with business objectives, organizations can ensure they have the resources needed to support their growth without overspending.
4. Benchmarking Against Industry Standards
Another valuable insight from Apptio’s strategy is the ability to benchmark technology spending against industry standards. This provides businesses with a clear picture of whether they are spending too much or too little compared to their peers. Such benchmarking helps companies stay competitive by identifying areas where they may be lagging behind or overspending.
In the context of cloud spending, for example, Apptio’s system can show whether a company’s cloud infrastructure costs are in line with industry norms. This allows businesses to optimize their cloud usage and avoid unnecessary expenses while maintaining the necessary capacity for growth and innovation.
5. Accountability and Stakeholder Trust
In an age where organizations are increasingly reliant on technology to achieve their business goals, accountability is crucial. Apptio’s approach emphasizes dollar cost accountability, ensuring that every tech investment is justified and tied to a specific outcome. This level of transparency is not only beneficial for internal decision-makers but also builds trust with external stakeholders, such as clients, investors, or regulatory bodies.
For companies managing large-scale technology transformations, being able to clearly articulate how funds are being used and what results they are driving is essential. It can also lead to more productive conversations with stakeholders, making it easier to secure approval for future investments in new technologies.
6. Optimizing Cloud and AI Spending
The transcript highlights the growing importance of cloud and AI technologies, which are becoming integral to many organizations’ operations. However, these innovations come with significant costs, and without proper management, they can quickly eat into budgets. Apptio’s solution helps businesses optimize cloud spending, ensuring that they are only paying for the resources they actually use and not over-allocating resources that go unused.
Similarly, as AI becomes more prevalent, businesses need to ensure that their AI investments are delivering tangible results. Apptio’s focus on cost accountability helps organizations track the effectiveness of AI tools, ensuring that they contribute to business goals and not just consume resources.
A Smarter Approach to Technology Investments
The lessons from Apptio’s approach to Technology Business Management offer a clear roadmap for businesses looking to optimize their tech investments. By focusing on cost transparency, data-driven decision-making, strategic planning, benchmarking, and accountability, organizations can ensure that every technology dollar works toward achieving business goals.
In a rapidly evolving digital landscape, having a clear understanding of where your technology dollars are going—and what value they are delivering—is critical to staying competitive. Apptio’s framework provides the tools to do just that, empowering businesses to innovate and grow without overspending. Whether it’s managing cloud infrastructure, AI tools, or traditional IT investments, optimizing technology spending is no longer a luxury—it’s a necessity for long-term success.
Unlock the Full Potential of Your Technology Investments
Ready to take your business to the next level with smarter technology spending? At John Clements Consultants, we specialize in helping businesses implement effective strategies to ensure every technology dollar works toward achieving your business goals. Contact us today to learn how we can assist you in aligning your tech investments with your long-term growth strategies.
