Technology Business Management TBM The Feld Group December

Technology Business Management (TBM) The Feld Group December 4, 2020 TBM Provides the technology leaders with standards and validated best practices to communicate the cost, quality and value of IT investments to their business partners $1. 1 T in Technology Spend

TBM Council 11. 5+K members in total 15 Communities of Interest 3, 900 unique orgs 5 Horizontal outcomes Global spread 50% AMS 35% OTHER 10% EMEA 5% APAC 9 Verticals TBM Taxonomy

A Growing Community FOUNDED (Non-Profit) Community Building Standards Development Global & Public Sector Education & Certification First APAC Summit Formed ETEC Vertical Taxonomies Virtual Reach 2012 2013 2014 2015 2016 2017 2018 2019 2020 113 800 1, 200 1, 800 3, 500 4, 800 Community & Membership Growth 5, 700 10, 000 14, 500

TBM Council Board of Directors Ashley Pettit SVP, CIO Atticus Tysen SVP, CIO Austin Murray CFO Bharat Amin EVP, CIO Julia Davis EVP, C I O Larry Godec C h a irma n Bhushan Ivaturi SVP, C I O Eileen Baines SVP, C I O George Maddaloni Global C T O Gerry Imhoff SVP, C I O TM Greg Sly CIO Jeri Koest er CIO Ralph Loura SVP, CIO Rhonda Gass C I O Scott Spradley EVP, C T O Shawn Purvis Corporate VP & Pres. Enterprise Services Les Ott olenghi CIO Shelia Anderson SVP, C I O Mark Satt erfield CTO Sunny Gupta CEO Paola Arbour EVP, C I O Tom Murphy CIO, VP IT Phil Armst rong EVP, Global C I O

Every company is a technology company Technology is powering every major business operation CIOs are driving Digital Transformation

CIO must drive digital innovation with agility While continuously optimizing run to fund digitalization CIOs are running IT like a Business

Demand & Consumption Quality Value Performance & Risk Cost Speed & Agility How important is really good IT to the success of your business or mission? Do you have enough IT resources (people, skills, money, assets) to meet the demands (wants) of your business partners? Do your business partners expect IT decisions to be data-driven? Do your business partners want a choice in what they get and how much they pay? Are you investing enough in changing the business vs. running it?

The Problem is… “Run” Continues To Rise 8 |

Technology Business Management (TBM) Why did I adopt TBM & Benefits Realized Application Rationalization (150+ apps) Over $10 M in cost takeout Self Funding Innovation Internal Infrastructure costs vs Outsourcing Shift Resources to Critical Projects Disk Tiering Development Costs > Production Cost – Why? ? CFO Award for most transparent organization Shift $$’s from “Run the Business” to “Grow/Transform the Business” Digital Transformation & Cloud

Common Challenges 1 Low Transparency 2 Poor Alignment 3 Lost Opportunities The IT bill is a “Black Box” No common language Poor insights to make decisions Tech spend outside the IT budget Difficult to manage behavior Discussions based on assumptions Excel-Based IT planning and cost reporting Low levels of accountability Uncontrolled spend in BU’s No single-source of truth Planned investment not aligned to shifting business priorities Frequent forecasting too labor intensive As organizations strive for success in the digital age, financial management of IT must evolve to enable cost control while creating a more agile and innovative environment.

TBM Pioneered a New Strategic Category for IT Sales has CRM HR has HRM Marketing has RPM Finance has ERP IT has Technology Business Managemen t (TBM) Enables Finance and Technology leaders to make informed decisions as they plan, analyze and optimize technology investments

Technology Business Management Value The most critical benefit is an overall improvement in the alignment between finance, the business and IT Industry Statistics ~10% 20 -40% *Mc. Kinsey *Forrester Bottom line impact 3 -5% Per year shift from Run to Grow *Apptio Reduction in effort Cost takeout of over 25% of IT spend to date and reduced turnaround of business requests to 3 -4 hours Shifted 30% of run spend to innovation and reduced applications from 4, 200 down to 1, 800 Automation Infrastructure & Application Transparency into Business Unit levers have helped identify IT optimization opportunities driving ~25 M in cost reduction Reduced run spend from 80% down to 50% and reallocated 30% of IT spend to lower cost e. Commerce channel improving customer profitability Business Consumption Digital Transformation 10 x Average ROI for TBM *Forrester

TBM Framework Continuously Improve Plan and Govern Run-the-Business Deliver Value for Money Cost-for. Performance Change-the-Business. Aligned Portfolio Investment in Innovation Value Conversations Create Transparency Position for Value Enterprise Agility Shape Business Demand

Questions Answered with TBM 5 1 How can we continuously improve the unit cost of our technologies and services while keeping cost and quality in proper balance? OVERARCHING GOAL: Optimize run-the-business costs and deliver change-the-business outcomes. 5 1 2 How can we better focus our time and resources on the services, applications, technologies and vendors that drive the most value? 2 3 4 4 How can we change the way we deliver and use technology in order to “pivot” more quickly to address new opportunities or threats? 3 How can my business partners and I be sure that we’re getting the most from our projects and services?

The Four Types of Value Conversations Spending and investments used for ongoing operations of the business Spending and investments used to grow or transform the business Run-the-Business Cost for Performance Change-the-Business. Aligned Portfolio Investment in Innovation Enterprise Agility Value Conversations We deliver the right performance for the best possible price. We spend our resources to get the biggest return possible for our business. We maximize our innovation dollars and ensure value over our investment lifetimes. We improve the speed at which our business – including IT – responds.

TBM Taxonomy V 4. 0 DRAFT (High Level View) Standards Committee Revenue Generating Business Architecture Business Processes Non-Revenue Generating Customers & Partners Product Lines Business Capabilities Digital Platforms Solutions Applications Products Services Business Shared & Corporate Delivery Platform Infrastructure IT View Workplace Towers End User Network Security & Compliance Delivery Compute Storage IT Management Platform Output Cost Pools Internal Labor External Labor Outside Services Hardware © 2020 Technology Business Management Council Ltd. All rights reserved. www. TBMCouncil. org Software Facilities & Power Telecom Other Internal Services Finance View Data Center Application Business View Business Units

COST POOLS (v 4. 0) EXTERNAL LABOR OUTSIDE SERVICES HARDWARE Expense Consulting Cap. Ex Operating Expenditures INTERNAL LABOR Capital Standards Committee SOFTWARE FACILITIES & POWER TELECOM OTHER Expense Other Managed Service Provider Lease Licensing Lease Cloud Service Provider Maintenance & Support Depreciation & Amortization Capital Capital INTERNAL SERVICES by Shared Service*

TOWERS (v 4. 0) DATA CENTER Enterprise Data Center Other Facilities Standards Committee SECURITY & COMPLIANCE IT MANAGEMENT IT Service Management Security IT Management & Strategic Planning Application Support & Operations Center Compliance Enterprise Architecture Business Software Program, Product & Project Management Disaster Recovery IT Finance COMPUTE STORAGE NETWORK PLATFORM OUTPUT END USER APPLICATION DELIVERY (Windows/Linux) Servers Online Storage LAN/WAN Database Central Print Workspace Application Development Unix Offline Storage Voice Middleware Mobile Devices Midrange Mainframe Online Storage Transport Mainframe Database End User Software Converged Infrastructure Mainframe Offline Storage Mainframe Middleware Network Printers Mainframe Container Orchestration Conferencing & AV High Performance Computing Big Data IT Help Deskside Support Client Management IT Vendor Management

SOLUTIONS (v 4. 0) Applications Products Workplace Connectivity Shared & Corporate Product Management Sales & Marketing Finance Workforce Manufacturing & Delivery Customer Service Vendor & Procurement Health & Safety Or Risk, Audit & Compliance Legal Industry specific solutions to win, serve and retain customers Property & Facility Corporate Communication Delivery Infrastructure Platform Strategy & Planning Development Support Operations Security & Planning Services Business Communication & Collaboration Client Computing Standards Committee Data Application Data Center Network Compute Storage

20 Larry Godec LWGODEC@GMAIL. COM