Case Study: Newport News Shipbuilding boosts transformation spending with Apptio TBM

Newport News Shipbuilding boosts transformation spending from 5% to 24% with Apptio

Newport News Shipbuilding, a division of Huntington Ingalls Industries, faced a significant challenge with its IT spending being a "$200+ million black box." The organization struggled to demonstrate the business value of its IT investments and could not accurately determine unit costs for its services. New CIO Bharat Amin recognized this lack of transparency was untenable for driving digital transformation and partnered with vendor Apptio, using its Apptio Cost Transparency solution based on the Technology Business Management (TBM) framework.

Apptio provided the solution by enabling Newport News Shipbuilding to implement TBM out-of-the-box, which quickly created transparency into IT costs and consumption. This shift to a business-focused approach allowed IT to identify $7 million in annual savings from applications that could be migrated or eliminated. The data fostered trust with business leaders through showback reporting, leading to faster, value-driven decision-making. As a result, the company dramatically increased its transformation spending from 5% to 24% of the IT budget, funding major digital initiatives like integrated digital shipbuilding.

Newport News Shipbuilding