You know all too well that translating IT spend into business value remains a persistent challenge. You’ve got a handle on the numbers, but how often do they really reflect the value IT delivers? Frameworks like Technology Business Management (TBM) aim to bridge that gap. But as you’ve likely experienced, theory rarely delivers results on its own.
At Serviceware, we’ve adapted the principles of TBM into a practical, executable model: the Digital Value Model (DVM).
This guide breaks down the fundamentals of the TBM Framework, shows where the friction points typically are, and demonstrates how DVM helps CIOs operationalize TBM goals with real data, real alignment, and real value.
What Is the TBM Framework - And Why Now?
TBM was created to help IT leaders map technology costs to business value. The idea is straightforward: define a taxonomy, apply shared language across IT and finance, and align spend with services and strategy. The TBM Council pushed this vision forward, though as you know, translating it into daily operational value is another story.
Why does this matter now?
Because the pressure to prove IT’s value has never been higher.
- Cloud spend is escalating. IDC forecasts global public cloud spending to reach $805 billion in 2024, and double by 2028.
- AI/ML workloads are adding complexity. According to our 2024 CIO report, 72% of IT leaders say that AI initiatives are creating new budget visibility challenges.
- Board scrutiny is growing. CIOs are being asked not just to control costs, but to justify every investment in terms of business outcomes.
In short: you’re already expected to be a strategist. The challenge is having the structure and tooling to act like one consistently and at scale.
TBM in Theory: What It Covers
At its core, the TBM Framework gives you a structured way to answer big questions:
- What does IT cost us?
- What value does it deliver?
- How do we make smarter decisions?
- Cost Pools (e.g., hardware, software, labor)
- IT Towers (e.g., servers, networks, applications)
- IT Services (e.g., email, CRM, payroll)
- Business Units (where the value lands)
The model also promotes key practices like cost transparency, benchmarking, planning alignment, and "value conversations" between IT and the business.
All of this is sound. But to make it work, you need more than a framework. You need a way to operationalize it - reliably, repeatedly, and in a way that supports decisions day to day.
From Framework to Execution: Why Serviceware Uses the Digital Value Model (DVM)
The DVM is Serviceware’s practical application of TBM principles, developed not to compete with TBM, but to make it usable.
Where TBM provides a taxonomy, DVM provides the system and structure to implement it. This includes:
- Real-time cost data across cloud, on-prem, SaaS, and hybrid environments
- Mapping between services, consumers, and business outcomes
- Showback and chargeback functionality that drives accountability
- Tools to forecast, plan, and optimize based on business priorities—not just budgets
We’re not the only ones doing this. Apptio has its own version of this operational layer (ATUM). But at Serviceware we know every business’s needs are different and we’re explicit: DVM makes TBM work for your business, is grounded in execution and designed to deliver measurable impact.
This difference matters. It gives you flexibility to align with TBM where it fits, and go beyond it where needed.
What Execution Looks Like in Practice
Let’s say your team is preparing budgets for the next fiscal year. You’ve already got cloud invoices, contract data, and usage metrics. But:
- Can you easily map those costs to the services business units actually use?
- Do you know which services are overprovisioned—or underdelivering?
- Are you allocating AI/ML infrastructure costs to the teams driving demand?
With the Digital Value Model, these aren’t manual Excel tasks. They’re built into the platform. You can simulate different budget scenarios, create service catalogs tied to real costs, and expose consumption patterns that drive better decisions.
That’s how DVM turns TBM from a framework into a lever for change.
Still using Excel for your ITFM?
It’s costing you more than you think. Find out all the details in our blog.
How to Start Operationalizing TBM with DVM
If you’re early in your TBM journey, or you’ve been stalled by the complexity, here’s a simple roadmap to get started:
- Centralize cost data: Pull in financial, operational, and cloud data into a unified model. No more silos.
- Adopt the TBM taxonomy:Use a shared language to map infrastructure, applications, and services to business units.
- Introduce accountability: Use showback and chargeback to create visibility and change behavior.
- Enable decision-making: Use dashboards and simulations to empower business leaders with data they can act on.
- Continuously optimize: Track usage trends, benchmark performance, and refine your services over time.
This is what Serviceware DVM enables: structured, data-backed, and CIO-ready transformation.
Final Thought: Value Needs a System
You already know how to spot waste. You understand why accountability matters. The gap isn’t knowledge, it’s structure. TBM offers a compelling framework, but only if you can make it stick.
With the Digital Value Model, we’re helping CIOs like you do just that: turn visibility into alignment, and alignment into value.
Want to see how DVM could work in your organization? Explore the Digital Value Model.
