10 Advantages of IT Cost Transparency

By Karen A. Frenkel  |  Posted 08-12-2014 Email

A new niche—technology business management (TBM) software—is emerging with an emphasis on cost transparency to provide enterprise IT organizations with useful data and insights. Because TBM software offers detailed, granular data about the cost of providing applications and services, it enables CIOs to make faster, fact-based decisions about purchases. The goal is to help CIOs accurately and openly discuss budget allocations with the company's business side. Cost is the most common factor across the majority of IT budget decisions, and when IT spend data is exposed via cost transparency, IT departments can make educated and powerful decisions because they know where the money is spent. "Businesses must first look at which decisions are influenced by cost transparency and then how organizations use cost information in their decision-making," says Dave Wilt, senior director of products at Apptio, Inc., one of the players in this new niche. Once the business and IT departments are on the same page regarding the cost of running IT, they will ultimately be able to better evaluate strategies for innovation.

Karen A. Frenkel writes about technology and innovation and lives in New York City.


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