Organizations waste an average of 21% of their cloud spend, which is equivalent to $44.5 billion in underutilized resources. This lack of financial visibility isn't just a cloud problem; it’s a sign of a bigger challenge in how businesses manage their IT investments.
Technology spending is complicated. Budgets balloon, priorities get muddled, and you’re left wondering where all the money went. Technology Business Management (TBM), a framework that translates tech investments into business value, provides a strategic approach to directing capital to where it delivers the most value.
While powerful, TBM isn’t always easy to implement—it requires commitment, strategy, and the right expertise. Let’s take a look at how three organizations cracked the code with TBM and achieved substantial cost savings.
1. Stanley Black & Decker’s IT Team Makes a Comeback with TBM
Stanley Black & Decker is a Fortune 500 company known for supplying the world with tools. But inside their walls, people didn’t see IT as the sharpest tool in the organization. In fact, their tech team was considered a major cost center, forever on the defensive for their performance and constantly asked to do more with less. This made it hard for the rest of the organization to view IT as a key player in implementing business strategy.
The Solution
To change the narrative, Stanley Black & Decker implemented TBM with IBM Apptio for total financial cost transparency. This pulled back the curtain on their spending to show where every dollar was going, connecting operational systems with financial data for crystal-clear insights.
With Apptio’s platform and custom integrations, they introduced flexible funding strategies to back key initiatives. Instead of constantly slashing IT costs, they used flexible funding models to invest in forward-thinking projects.
The Results
Now, Stanley Black & Decker’s IT department has a permanent seat at the strategy table, helping make strategic investment decisions that drive the whole business forward. Decisions now revolve around what the business truly needs, not just the price tag. These changes have also improved collaboration between IT, finance, and other departments within the organization.
Take it from Rhonda Gass, VP and CIO, who said it best:
"We have transformed from having a defensive cost center, justifying our value position, to holding a strategic, insights-driven offensive position, ensuring the entire organization achieves a strong value realization."
2. Fortune 500 Retailer Ditches Digital Transformation for Dashboards
This retailer was in hot water with their cloud expenses spiraling out of control. Their digital transformation efforts weren't living up to the hype either. The retailer fell into the transformation trap, and it ended up being too expensive and too much organizational change for them to handle. They needed a more practical way to keep cloud costs in check.
The Solution
First, they stopped flying blind and invested in real-time dashboards to track their cloud expenses, providing some much-needed insight into how they were spending their budget. Rather than manually tracking financial allocations, they streamlined the process by automating cost allocations and reporting with Apptio tools.
To maintain efficiency and alignment, they introduced quarterly portfolio reviews, ensuring that everything ran smoothly. By applying the principles of Technology Business Management (TBM), they successfully connected tech spend to their growth objectives, making sure every dollar contributed to boosting online sales.
The Results
These small but practical fixes paid off fast. Cloud costs dropped by 25%, and digital platform sales improved by 25%. The retailer also saved 10% on legacy applications, which had been quietly lurking in the background as hidden costs. TBM provided them with the structure and clarity they needed, enabling the retailer to take decisive action and optimize IT costs.
3. Healthcare Provider Stops Throwing Money at Outdated Infrastructure
A leading healthcare provider was caught between pushing innovation forward and maintaining critical–but outdated–legacy systems. Balancing the need to fund new initiatives while managing old infrastructure wasn’t easy. And gaining clear visibility into costs versus benefits? It felt out of reach.
The Solution
The healthcare company rolled up their sleeves and went all-in on cost transparency, breaking down how they spent their tech dollars. By tying IT budgets directly to patient care outcomes, they highlighted where investments made the biggest impact.
With TBM and tailored healthcare reports, they kept a close eye on everything—from duplicate tech expenses to funding for innovation. They also adopted flexible funding strategies, finally pooling together resources for innovation initiatives instead of pouring money into outdated systems.
The Results
The healthcare provider achieved impressive results. They cut $12M in redundant tech spend and boosted funding for innovation by 35%. Strategic tech investments even helped improve patient satisfaction scores. Plus, collaboration improved between IT, finance, and clinical teams, which was a win for both technology and the people.
Stop Wasting Your IT Budget
Stanley Black & Decker IT made a comeback. A retailer saved buckets of cash while boosting sales. And a healthcare provider finally stopped funding outdated systems and doubled down on improving patient care. TBM made it all possible.
If you’re staring at your tech budget wondering, “What even is this?”, it’s time to get serious about TBM. To set your organization up for success with the framework, start by taking a good look at where you are now.
Review your financial management processes and pinpoint the biggest challenges and opportunities. Establish a clear picture of your current costs and how they’re allocated. This will help you build a strong case for TBM by showing the potential value, like cost savings or better decision-making. You also need to get buy-in from key leaders in IT, finance, and business, and set clear goals that align with your company’s priorities.
Next, put the right team and structure in place. You’ll need a TBM program leader (usually reporting to the CIO or CFO) and a cross-functional team that brings together IT, finance, and business units. Create a governance model to keep everything on track. Finally, choose the right tools for the job. Platforms like Apptio can help, but make sure you plan for a phased rollout and identify the data and integrations you’ll need along the way.
A TBM Strategy That Works for Your Business
These days, technology is way too important to be treated like some mysterious black box. TBM brings clarity and accountability to the table, ensuring every tech dollar actually works toward real business results. But to make TBM work, you need the right tools and expertise, rolled out in a practical way that doesn’t involve large-scale transformation.
At Praecipio, we built our VISTA approach to guide you through pragmatic implementations that deliver on all the details. With VISTA, IT is no longer the team burning through budgets but instead the crew turning savings into growth opportunities.
Through our work with Apptio and the VISTA methodology, watch IT go from being a dreaded cost center to a legit value driver.
Reach out to Praecipio to build and execute a TBM strategy that meets your business needs.
