The Digital Value Model®

The Serviceware Digital Value Model (DVM®) begins by looking at where your company stands with its data and processes. It doesn't assume you have to use a single model that's right for everyone. It can help IT Finance and FinOps teams to speed up and improve digital transformation, making processes more efficient, all for the benefit of your customers.

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Fast Track to Business Value

The Serviceware Digital Value Model helps CIOs and CFOs assess the value of their IT services and investments using data. It's about talking business benefits, not tech details, with everyone involved.

It uses standard terms and best practices for planning, forecasting, allocating, cost transparency, simulation, scenarios, benchmarking, cloud cost management, vendor management, project portfolio management, and green IT sustainability. This enables shorter implementation cycles and faster time to value.

DVM combines a Technology Business Management (TBM)*-optimized data model with a range of best practices and FinOps capabilities to give you a complete view of your IT services, including people, processes, and data.

* "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)

The Digital Value Model explained

Dr. Christopher Boortz explains the Digital Value Cost Model from Serviceware. It's a versatile data model that uses the TBM system. It includes a wide range of key performance indicators (KPIs) for managing IT costs, ready-to-use templates for standard IT Financial Management processes, and the use of artificial intelligence (AI) to enhance these processes. It also incorporates tried-and-true consulting practices.

Learn how this model can help speed up the process of digital transformation in your organization.

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Digital Value Model benefits

With a full view of how your company creates value, you can track, connect, and deeply examine all the costs of your IT organization, right down to the smallest detail, using the Digital Value Cost Model. This means you can generate important decision-making information in real time.

Using AI for clarity

Cost-to-Value-Flow: Easily track how costs are allocated from your financial system through IT departments and services with AI, ensuring complete transparency across your IT value chain.

Facilitating Benchmarking: Compare your data with both internal and external benchmarks to find areas that need more investigation. This helps you discover real opportunities for cost savings and improving value.

Empowering control

Every IT leader, from CIO to service owner, can use reports and KPIs to manage costs and performance. Make decisions based on their real costs, focusing on value and agility. Begin with a broad overview of technology spend, and only increase detail where the value of better data justifies the effort.

Achieving savings

Gain clear insight into IT costs and value. Achieve the right balance by reducing unnecessary service use, refining service levels, and streamlining operations. Lower costs by benchmarking, managing vendors, sourcing labor efficiently, and optimizing your technology resources. Boost IT Financial Management productivity with automated workflows.

Guidance and measuring success

The guidance provided by the Digital Value Model ensures that your strategy is effectively put into practice. Responsibilities for making a profit, setting goals, defining key performance indicators (KPIs), and creating measures can be given to the individuals in charge of IT, Finance, HR, and other Shared Services.

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The Business View

How does IT affect our company's success and digital performance in a way we can measure?

Sample Key Performance Indicators (KPIs):

  • Understanding IT Spending: See how our IT budget is divided into categories like routine operations, changes, and innovations.
  • Strategic Alignment: Measures how well projects fit our company's strategy, whether they stay on budget and on schedule, and which projects stand out as exceptional.
  • Breaking Down Costs: Looks at how IT costs are spread across different parts of our organization, like business units, in relation to the size of our teams and revenues.

The IT View

How can we make IT work better overall or in specific areas, and what exact measures can be improved?

Sample Key Performance Indicators (KPIs):

  • Understanding Total Costs: Helps figure out how much it costs to own and operate our services, products, and applications.
  • Cloud Spending: Looks at how much we're spending on cloud services compared to our entire IT budget.
  • SaaS Efficiency: Checks if we're using software subscriptions effectively, based on how many instances we actually use.
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The Finance View

How much do IT services cost, and what value do they bring? How can we make sure we charge correctly and follow the rules?

Sample Key Performance Indicators (KPIs):

  • Real Spending: Helps see how much we actually spend on operating expenses (Opex) and capital expenses (Capex). It also checks the difference between what we planned to spend and what we actually spent.
  • Budget Comparisons: Shows us the reasons behind changes in our budget from the past to the present and into the future.
  • Cloud Costs: Examines whether our spending on cloud services matches what we really use.

Turbocharging your Digital Value Model

The ignition spark on your path from data to dashboard is the core calculation model, the Digital Value Model. Purpose-built for flexibility, it empowers you to incorporate your organization’s unique labels and attributes when assigning costs, and allows you to refine each step as your business needs evolve. This approach ensures consistency in budget and demand management through standardized processes while continuously surfacing new value-creating opportunities.

Load your current service and cost data into the DVM-TBM database

AI-powered mapping streamlines the creation of your Digital Value Model.

Identify and realize initial savings

Adjust service catalog to adapt TBM to future mode of operations

Introduce TBM standards while maintaining business specifics.

Align business and service needs

Use Business Service Calculator to build specific offerings.

Implement / modify metrics and reporting

Versatile reporting options help to demonstrate cost savings potential.

Continuous KPI monitoring, adjustments, savings and service automation

Use workflows to drive automation

Talk to the Digital Value experts