Running IT Like a Business: How Technology Business Management is Shaping the Future of Federal Agencies
Running IT Like a Business: How Technology Business Management is Shaping the Future of Federal Agencies
As the Government continually looks for ways to increase efficiency and encourage innovation, Information Technology (IT) is emerging as a solution to these needs. Recent Federal guidance mandates all agencies to adopt a new framework for better understanding IT costs. Technology Business Management (TBM) is a framework that incorporates IT departments into the overall business network, shifting away from treating IT as an independent unit. This provides a clear way to evaluate and manage IT, running IT as a business and communicating the value of new IT investments.
Viewing and running IT like a business means establishing a business-focused strategy that takes advantage of technological capabilities. This strategy establishes a clear Return on Investment (ROI) for every IT project. Chief Information Officers (CIO) should provide a compelling portfolio of products and services with a special focus on outstanding customer experience. These services include robust operational processes, readily accessible knowledge, and frictionless self-service capabilities. These revamped IT departments must also exhibit financial and business acumen, effective marketing, and continuous research and development.
Implementing, transforming, and modernizing a foundational structure
for any organization can be a challenge, especially when transitioned to the
public sector. These challenges can take the form of budget constraints,
stakeholder buy-in, and a lack of regulatory flexibility. While the private
sector is focused on increasing shareholder value, the public sector requires a
mission-focused approach to serve citizens as efficiently as possible. The
increased use of TBM by Federal agencies aims to revolutionize the way that
procurements, contracts, and organizations are structured, with the end goal of
promoting organizational efficiency.
Federal agencies looking to adopt the principles of TBM may see the initiative as overwhelming, but there are specific steps these agencies can take to ensure a successful transition. Buy-in from all units within an agency ensures a seamless transition. Identifying the current state, key stakeholders, and a measurable desired outcome helps to establish the roadmap for TBM implementation. From there, agencies should educate their units about the goals of TBM in the roll-out process. The adoption of TBM drives the Government to think of its IT like a business, something that is process-based, profit-motivated, and flexible to changing environments.
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