Pole Position in Technology Business Management

The Digital Value Model

The Serviceware Digital Value Model (DVM) starts with the status quo of your company’s data and process realities, without presupposing the mandatory use of a unified model. Accelerated, effective, sustainable digital transformation and maximum efficiency in the processes – for the benefit of your customers – are within reach. 

Download the Digital Value Model poster

Fast Track to Business Value

The Serviceware Digital Value Model enables CIOs and CFOs to make a data-driven assessment of the value created by IT services and investments. Communicate business cases rather than technology cases with stakeholders. Use standard terminology, best practices for planning, forecasting, allocation, cost transparency, simulation, scenarios, benchmarking, cloud cost management, vendor management, project portfolio management and Green IT / sustainability. The Serviceware Digital Value Model (DVM) combines a TBM*-optimized data model with a comprehensive set of best practices. DVM thus enables a holistic view of people, processes and data of all IT services.

* "Technology Business Management (TBM) is a discipline that improves business outcomes by giving organizations a consistent way to translate technology investments to business value.“ (www.tbmcouncil.org)

Creating IT Cost Transparency

The Digital Value Model explained

Watch Dr. Christopher Boortz, Strategic Service Consulting, explaining the Digital Value Cost Model from Serviceware. It is a flexible data model, based on the TBM taxonomy, encompassing a comprehensive set of steering KPI, templates for standard, AI-enhanced IT Financial Management processes, as well as tailored and proven consulting best practices. Gain insights on how to accelerate digital transformation in your organization.

Digital Value Model Benefits

Create Transparency – Enable Steering – Realize Savings

With a holistic view on value creation in the company, all costs of an IT organization can be captured, correlated and analyzed in-depth and down to the smallest detail with the Digital Value Cost Model. From data to dashboard, decision-relevant information is created in real time.

AI-based Transparency

Define your Cost-to-Value-Flow: Use AI to map costs from your ERP world to Cost Pools, IT Towers and services. Establish cost flow relationships along your whole IT value chain, technical service to business service to customer/product/capability/value stream, to create E2E transparency.

Enable Benchmarking: Combine internal and external benchmark data to identify outliers and areas that merit further analyses to derive concrete cost saving and value improvement potential as well as initiatives to realize them.

Role-based Steering Logic Enabling Agile Controlling

From CIO to technical service owner, allow each role to steer their area of responsibility to get relevant reports and KPIs. Proactively manage IT costs and performance. Link decisions and the resulting costs. Apply an iterative, ROI-driven and agile approach to improving the quality and granularity of your data. Get structured top-down insights across 100% of technology spent by default. Refine and detail the model only where the steering benefits cover the costs for data improvement and maintenance.

Realize savings

Provide an overview of IT cost drivers as well as value drivers and the expected impact of changes to these drivers. Optimize cost-value ratio as you steer demands towards reduced service volume consumption and rightsizing/streamlining service scope as well as service levels (SLA). Enable supply-side cost optimization through benchmarkable service unit cost analysis, steer vendor costs, right-source labor and optimize software and hardware resource capacity. Increase productivity along the ITFM process due to automation and workflow support.

Steering logic and KPIs

The steering logic that comes with the Digital Value model ensures that your strategy is successfully translated into operational management. Profit responsibility, targets, key performance indicators (KPIs) and measures can be assigned to responsible persons in IT, Finance, HR and other Shared Services.

Key Performance Indicators gauge your company's output against your set of targets and objectives. So, let's talk about:

  • Spend efficiency: budget evolution, cost flexibility, spend per organizational unit, Total Cost of Ownership (TCO) of services, products and applications
  • Execution: spend variance vs. plan, projects in budget / on time
  • Innovation: Run vs. Change vs. Innovate, lifetime impact
  • Cloud: cloud index, cloud cost flexibility, on demand vs. reserved

The Business View

What measurable impact does IT have on the positive business development and digital performance of your company?

Sample KPIs:

  • Breakdown of IT spend in run / change / innovate categories
  • Strategic fit and ratio of projects in budget / on time and top outliers
  • Split cost by org unit (e.g. business unit), in relation to team size / revenues
The IT View

How can IT as a whole or in sub-areas be managed more efficiently and which precise performance and cost parameters can be improved?

Sample KPIs:

  • Total Cost of Ownership of services, products and applications
  • Share of cloud spend relative to overall IT
  • SaaS subscription allocation vs. actual instance utilization
The Finance View

What does IT cost and what is the value of the services it provides? How can IT services be charged and compliance guaranteed?

Sample KPIs:

  • Actual spend Opex/Capex and variance versus plan and budget
  • Show drivers between current and past budget and future
  • Cloud cost allocation vs. actual utilization

Turbocharging your Digital Value Model

The ignition spark on your way from data to dashboard is the underlying calculation model, the Digital Value Model. It provides enough flexibility to incorporate enterprise-specific tags and attributes when allocating costs, while managing budget and demand are standardized in the processes layer, all with a focus on uncovering those value creating opportunities.

Live demo

Get on the fast track to business value

Watch a self-service demo or book a live demo with our expert consultants today to see what our financial solution can do for you.


Serviceware Financial

Simulation and Cost Modeling

Gain insight into service cost modeling and simulation with a concrete application example: How to easily calculate and simulate changes in the composition of your services. What happens when new employees join and are added? To what extent does this affect the cost of services?

Serviceware Financial

Cloud Cost Management

See how you can easily identify potential savings, calculate the Total Cost of Ownership of your cloud and on-premises services, visualize the composition of services with the Visual Service Analyzer and create what-if analyses.

More resources on DVM


Serviceware Financial Laptop mit Programmen

October 11: Using Benchmarking to Drive Cost Optimization in ITFM

Systematic benchmarking shows you where your portfolio stands in direct comparison with your competitors. Watch the webinar.


Quick Rundown of Technology Business Management (TBM) Fundamentals

TBM is a methodology for businesses to manage their IT as if it were their own business, focusing on value delivered rather than solely costs. But how does it work?