Wednesday, June 4

7:00-8:00 a.m.

Conference Registration and

Continental Breakfast sponsored by

a leader in research and management consulting

8:00-8:45 a.m.

Chargeback in a Virtual Infrastructure
Vinit Sharma, Senior Consultant
VMWare UK Limited (United Kingdom)

Shifting from a physical infrastructure to a virtual infrastructure brings about many changes, such as the adoption of new technologies, hardware, internal processes and a paradigm shift in the way of thinking. In a physical infrastructure it is generally easier to account for costs (e.g. server hardware and administration time) as a single physical server usually hosts one application, therefore hardware costs, software costs and administration time can be assigned more easily. In a virtual infrastructure, traditional boundaries of resources (hardware and administration time) no longer exist, as a virtual machine will share such resources. Measuring the usage of such shared resources (hardware, storage, and administration time) becomes more difficult. There are several chargeback models an IT department could adopt, and this presentation will provide examples. Currently there are a limited number of software solutions specializing on Chargeback in the virtual infrastructure. Also included in this presentation will be examples of such software solutions.

9:00-9:45 a.m.

Why Metering Matters: Enabling Chargeback, Cost Control and High User and Asset Efficiency
Eistein Fosli, Founder and Signe Marie Stenseth, Vice President
Open iT, Inc

This session examines the importance of accurate metrics for understanding the efficient use of corporate IT assets and how metrics have saved companies millions of dollars. Enabling chargeback, monitoring pay-per-use agreements, and monitoring technology pickups are just some of the key areas where metering proves essential for effective use of IT assets. This session will demonstrate through case studies how usage information, intelligent processing, and clever utilization of usage statistics have benefited IT organizations far beyond the initial expectations.

10:00-10:45 a.m.

Managing Fast Track Changes in Complex Chargeback Applications
Robert Mischianti, Managing Consultant
Nicus Software

All chargeback applications need to make fast track changes to keep up with IT and business advances. Managing these critical changes is one of the biggest challenges facing chargeback applications today. Poor execution of these changes has a negative impact on application stability, data accuracy and user confidence. This presentation examines ways to manage these changes without crippling your chargeback application. Discussions will focus on better relationships with IT support staff, unique application features that make the changes easier, and change management practices that can be deployed for fast track changes.

11:00-11:45 a.m.

Prices – The Key to Getting the Full Benefits of Your Service Catalog
N. Dean Meyer, President

For some organizations developing a service catalog means running IT in a more business-like manner.  To others it's applying best practices as a part of ITIL. This session tackles two of the toughest challenges in developing a service catalog – challenges where financial managers have a central role and have the potential for significant contributions to the success of the organization. The first is defining IT products and services with the right clarity and granularity to reflect meaningful "purchase" decisions by clients. The second is attaching prices to these products that reflect their full cost to shareholders, including all indirect costs. If you don't get these right, you are forgoing the most powerful benefits that the catalog has to offer, including demand management, optimal resource allocation, and strategic alignment.

12:00-12:50 p.m.

Buffet Lunch
- Not available to family/guests

1:00-1:45 p.m.

Chargeback Accountability and Financial Controls: Lessons Learned
Bill Cornfield, President
WSG Inc.

The underlying assumption guiding IT Chargeback is that a Chargeback system with defined parameters, rates and calculation methodologies will help firms make rational decisions on IT expenditures. However, communication between business units and IT in addressing issues such as accruals, allocation of data center services across the enterprise, capitalization data capture, development, maintenance and R&D in their unique Chargeback environment is critical in the success or failure of any Chargeback implementation. This session describes the lessons learned by our clients in the areas of accountability and financial controls that have implications for other Chargeback environments.

2:00-2:45 p.m.

An Internal Market Approach to IT Chargeback
Jefre Baker, Senior Director, IT Internal Markets

Beginning in 2006, IT at Georgia-Pacific made a radical change in their internal service provider business model. This session will discuss how the old processes of allocations and budget based spending have been replaced by an "Internal Market" of buyers and sellers. This included implementing a catalog of services with clear price signals to help each IT group and their internal customers make better decisions about service levels and usage.

3:00-3:45 p.m.

Chargeback & Usage-Based Billing 101
Mark Pringle, Managing Consultant
IBM Corporation

Virtualization, Distributed Processing, Shared Services, Sarbanes Oxley, and Circular A-87 are all hot topics in IT Management nowadays. These same topics are raising new interest in the issues of Chargeback and Resource Based Billing as IT Departments (as well as Corporate Management) struggle with new technologies and regulatory requirements. In this presentation we will look at a number of basic Chargeback concepts and principles. We will also look at IT and chargeback maturity models and the steps for building a world-class chargeback process.

4:00-4:45 p.m.

FullCost Product Demonstration
N. Dean Meyer, President

Transparent budgets, fair allocations, managed expectations, portfolio management, accurate rates – knowing the full cost of your products and services is essential. FullCost is an Excel-based application and method that can forecast the true cost of each and every IT product and service. It can be used for business planning, activity-based budgeting, pricing service catalogs, and rate-setting (for chargebacks, governance or benchmarking). This second-generation, highly-interactive planning tool is the result of two decades of research and a host of implementations in corporate, government, and non-profit organizations. FullCost has all the capabilities you need to know your cost of services.

5:00-7:00 p.m.

WSG, Inc. Reception

WSG, Inc.

Please join WSG, Inc. Wednesday in our hospitality suite. This will be an opportunity for you to meet informally with your fellow conference attendees. The WSG hospitality suite at previous ITFMA conferences has proven to be an enjoyable opportunity to make useful business contacts, obtain answers to some of those lingering project accounting questions, and enjoy great food and drink. Members of our staff will be available to answer any questions you might have regarding our products and services in a casual atmosphere.

Thursday, June 5

7:00-8:00 a.m.

Continental Breakfast

8:00-8:45 a.m.

Total Technology Chargeback and Its Role in IT Financial Governance
Robert Svec, President & CEO
and Michael Siniscalchi, Vice President
ComSci, LLC

This session will provide answers to "What is total technology chargeback?" Today's Total Technology Chargeback now allows visibility into all IT products and services such as mainframe, distributed services, desktop support services, telecommunications and much more. The evolution and growth of Total Technology Chargeback and its role in IT Financial Governance will be discussed.

9:00-9:45 a.m.

Virtualization: How Are Companies Measuring Usage, Capacity and Consumption
Signe Marie Stenseth, Vice President
Open iT, Inc.

The virtual environment has in general a higher utilization rate of physical hardware and software than a standard distributed environment. Metering usage in such an environment is critical for several reasons: To support accurate chargeback billing, to support capacity and performance planning including system consolidation, and to support proactive budget planning. This session will describe how companies are measuring usage, capacity and consumption in the virtual environment.

10:00-10:45 a.m.

Chargeback Implementation in 136 Easy Steps or Less
Penny Collen, Senior Consultant
IBM Global Technology Services

Whether you have decided to implement chargeback or you have decided to upgrade your current chargeback system, you may think the biggest decision you have is what application to choose. Chargeback is first and foremost a financial process. Applications enable those processes to be implemented more smoothly but should not drive the design. This session will walk you through a systematic approach to chargeback implementation that ties to ITIL processes. The information you will learn can be applied to new installations as well as enhancements to existing processes.

11:00-11:45 a.m.

The Greening of the Enterprise
Gary Pereyo, Senior Consultant
IBM Corporation

"Green” is everywhere you look today. Evening newscasts and periodicals are running features showing how to save energy for almost everything. These articles are discussing concepts such as alternate sources of energy, more efficient recycling, ways to reduce energy consumption, etc. These concepts are now being applied to the Enterprise as well. How do these activities impact the bottom line and is there an impact on how you do Chargeback? Stop by this session and find out.

12:00-12:50 p.m.

Buffet Lunch sponsored by

ClearCost, an integrated IT Service Financial Management software.

- Not available to family/guests

1:00-1:45 p.m.

Simple IT Chargeback, Is It Possible?
Scarlett Hu, Assistant Director, Information Technology Services
J. Paul Getty Trust

This is a case study on how the J. Paul Getty Trust, a non-profit organization, implemented chargeback for two key IT services (IT asset management and user support) using a balanced approach between direct activity-based cost attribution and allocation-based cost averaging, without creating additional administrative burden on the users and without increasing headcounts in IT.

2:00-2:45 p.m.

Chargeback in a Virtualized World
David Kaufman, CEO

Distributed systems have always presented challenges to those implementing chargeback or cost allocation systems. In the past, the vast majority of costs could be associated with dedicated resources. Today's infrastructures however include numerous shared resources and now with the introduction of virtualization, the challenges become far greater. This presentation describes a simple approach to cost allocation and/or chargeback in these complex, virtualized environments.

3:00-3:45 p.m.

Chargeback and Encryption
Jim Marshall, Systems Software Engineer
Captain, USAF-Ret

Encryption of data is not only wise but is mandated when dealing with the U.S. Government. The private sector will be forced into the encryption of data soon. Chargeback systems need to include fair share charges for encryption. To charge for it, basic encryption requirements and how to apply their costs to rates need to be understood. Encryption costs will be outlined while looking at the cost drivers and explaining each area of costs to consider and suggestions of how to charge the costs.

4:00 - 4:45 p.m.

Maximizing IT Infrastructure Investment – When is an Asset Fully "Performance" Utilized?
Michael Matchett, Director, Marketing & Management
Akorri, Inc.

There are many measurements of "utilization” for an IT asset. We often need to judge our current IT utilization and decide if we are grossly under-utilized and should initiate a consolidation project, are over-utilized and need to invest in additional resource or optimization activity, or are in great balance. We will discuss the performance "utilization” of IT assets and how to use those metrics to help maximize the IT infrastructure investment. We will also discuss how to continue to measure utilization properly in a shared, virtualized IT environment as well as the implications of utilization measurement for proper cost allocation and chargeback.

Friday, June 6

7:00-8:00 a.m.

Continental Breakfast

8:00-8:45 a.m.

Building Defensible Rates – How to Accomplish This Through Activity-Based Budgeting
Debbie Zellner, Principal Accountant
Riverside County

After Riverside County implemented activity-based budgeting, defending rates has never been easier. Learn what is activity-based budgeting and how different it was from the previous methodology. In addition, see the reports developed to help management scrutinize budgets.

9:00-9:45 a.m.

Value Added IT Chargeback: Alternative Chargeback Approaches
Christopher Dedera, Senior Manager
Ernst & Young LLP

Frequently IT chargeback focuses on allocating costs, which only manages to shift costs from one entity to another. Chargeback can and should be much more. It can create value and become a tool to manage costs that are internal and external to the IT organization. In fact, if IT chargeback does not create value by reducing costs or improving efficiency, the time and energy devoted to the chargeback process should be redirected to other improvement opportunities. This session will explore some of the techniques used to make chargeback an effective cost management tool.

10:00-10:45 a.m.

Using Activities as the Foundation for Integrated IT Performance Management
Richard Barrett, Director, Enterprise Performance Management
Business Objects

In many sectors the IT function can account for a quarter of an organization's total cost. Yet there is often a limited understanding of what is driving the IT resources and costs. To develop a deeper understanding of how and why IT costs are incurred and to provide a firm basis for cross charging, many organizations are turning to activity-based costing (ABC) to provide detailed information to business units about their consumption of IT resources in order to control cost and understand how decisions made today impact costs in the future. Yet an activity-based approach can go far beyond costing and cross charging. It can provide a basis for IT planning and budgeting as well as many of the metrics and measures required by an IT scorecard. This session shows how using activities as the basis for IT performance management can provide a single solution to all of these financial disciplines.