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a leader in ITFM Software Solutions for Financial Transparency
Cloud: Planning, Budgeting and Cross Charging Michael Daniels, IT Governance Analyst
Cox Enterprises, Inc.
There has been much debate and discussion on how to successfully plan for, implement and operationalize internal cloud computing capabilities. Over the past year, Cox Enterprise has undertaken the challenge of implementing an internal cloud computing infrastructure to be utilized both internally and externally by Cox divisions. During that time, we had to evaluate budgeting and cross-charging implications related to our internal IT, as well as for our subsidiary customers. During this session, This session will discuss our cloud budgeting, planning and cross charge process as well as lessons learned throughout the implementation project.
IT Financial Planning, Budgeting, and Reporting Best Practices: What Your Enterprise Planning Tools Can’t Do Jeff Yoder, Vice President
For all IT Finance executives, budgeting and forecasting is an imperative that sets the stage for success for the entire IT organization. Just focusing on the spending side of the equation is not enough. This lecture defines the key requirements for 21st century IT/technology budgeting and forecasting. One of five key areas for complete IT Financial AND Business Management – dynamic successful budgeting and forecasting – is key to the success of all IT teams. This is called "agile” budgeting and forecasting. In this "must attend” lecture, the aspects of automating "bottoms up” budgeting, forecasting and re-forecasting with complete version management will be discussed. A broader discussion will be included on why existing enterprise budgeting and planning tools are NOT adequate for articulating IT’s budget and forecasting to meet the demands of the modern enterprise.
Tips and Best Practices: IT Financial Planning, Budgeting, and Reporting Mahipal Lunia, Group Manager, IT Business Management
As IT organizations continue to mature, there is an increased need for managing business needs and identifying the best cost-effective solution. IT Finance is now regarded as the broker of it services. This involves planning, budgeting, asset control, and overall governance of IT and Vendor processes. During this session we will discuss a systemic approach to managing the business of IT with a keen eye on planning and control. We will also cover the best practices in delivering on this promise for CIOs, CFOs and IT Controllers.
Key Metrics for Benchmarking Your IT Spending and Staffing Levels Frank Scavo, President
IT organizations often turn to benchmarking to understand where their IT budgets stand relative to peer organizations. But too often, they drown in a flood of metrics that are difficult to gather and do not answer two basic questions: where does our budget performance differ from peer organizations, and what do the variances mean? Based on a decade of IT benchmarking experience, the speaker will highlight the key IT spending and staffing metrics that are most useful in answering these questions. In the course of the presentation, he will explain:
• Why averages are useless in benchmarking
• Why IT spending as a percentage of revenue is an imperfect measure
• The one simple metric that can instantly tell you whether your IT organization is understaffed or overstaffed
• Which IT operational metrics are best to help you zero in on opportunities for improvement
• Which metrics should be industry-specific and which should NOT be
For those seeking to optimize their IT budgets, the presentation will identify those factors that most greatly affect IT spending and staffing levels.
The Four Basic Views of Cost Required for IT Finance Robert Mischianti, Vice President
Nicus Software, Inc.
IT Finance organizations are often tasked with providing four basic views of IT costs from the perspective of department, project, line of business and service. This session will review the content of these views and what methodologies, tools and data sources are required to build them.
Moving to a Prioritized Business Services Model to Reduce Your Spend on Less Critical Services James Holman, Client Services Director
All Business Partners in an organization want their services to be the highest priority for projects, operations and enhancements. Prioritizing existing services by business criticality can give the IT organization a road map for cost reduction as well as give the IT leadership team a strategic mechanism to prioritize supply and demand for IT services. Learn how to prioritize the service portfolio by forcing the business to make tough decisions and how to leverage resource management to understand if you are spending too much on services not critical to the business.
HP Combines Financial Management with Cross-IT Performance Reporting to Deliver a Real-time Business Performance System for IT (Software Demonstration) Richard Hawes, HP WW ITFM Sr. Product Marketing Manager and
Ellen Kennedy, HP WW ITFM Sr. Product Manager
This session will explain HP’s strategy for maximizing the value of the data contained within your IT management environment. We will include, but take a look beyond, typical IT Financial Management to show how financial, process and performance data can combine to provide new insights that help to make IT operate in a more business-like and transparent way. Topics covered will include IT operational reporting, IT Financial Management and how to provide mobile performance dashboards for senior executives with a demonstration of the latest innovations from HP Financial Planning and Analysis and HP Executive Scorecard software.
VMware invites you to join us for some delicious food, refreshing drinks, and informal conversations in a relaxing atmosphere. This will be an enjoyable opportunity for you to network with other conference attendees and (if you feel so inclined) learn about VMware’s IT Business Management Solution.
Nicus Software, a leader in IT Financial Management solutions
Welcome Comments, Award Ceremony and Drawing Terence Quinlan, Director
IT Financial Management Association
After a brief "Thank you for coming,” there will be an Award Ceremony recognizing many of the pioneers and leading experts who have been the major ITFMA contributors to the education of the IT Financial Management profession over the past 25 years. All of the speakers at this week’s IT Financial Management By Leading Professionals Conference will be recipients of this distinguished Award. Following the Award Ceremony, there will be a drawing for door prizes and you must be present to win. Among the prizes will be several of the new iPad3 32GB with WiFi + 4G access to the Verizon network for maximum coverage.
IT Value Management for CFOs – How the IT Capability Maturity Framework Focuses on IT Finances Tony Timbol, Vice President, Sales and Marketing
David Consulting Group
The Innovation Value Institute (IVI) is a consortium of leading industry, consulting, not-for-profit and academic organizations collaborating to create the global standard to realize the business value from IT investments. The David Consulting Group joined the IVI in 2011. The IVI researches and develops unifying frameworks and road-maps for IT and Business executives to create more value from IT and better deliver IT enabled innovation whilst validating that these frameworks/tools have a broad applicability across differing industries and contexts. Initially, IVI has focused on extending the development and dissemination of the IT Capability Maturity Framework (IT-CMF) to the point where the IT-CMF is usable and a significant assessment database has been built for benchmarking companies against each other. The IT-CMF consists of 33 Critical Capabilities grouped into four Macro-capabilities: Managing IT like a business; Managing the IT budget; Managing the IT capability; and Managing IT for Business Value. This presentation will focus on describing the current status and likely future developments of the financial-specific critical capabilities in managing the IT Budget Macro-capability.
Portfolio Value Management – Prioritizing IT Investments Pam Erskine, Director of Consulting
Third Sky, Inc.
IT costs in many organizations are increasing. Customers continue to want the latest technology, improved service for their applications, and/or new service options in budget constrained environments. There are continuing demands to reduce costs while improving quality. Within the existing Service Portfolio, there are numerous services that may require investments to meet the needs of the business. What role does Financial Management play in making these decisions? In this session, we’ll explore the dependencies between Service Portfolio Management and Financial Management. We’ll introduce the concept of Portfolio Value Management and discuss how to prioritize the services within the portfolio so IT investments can be directed toward high value services. You will learn:
• Why Financial Management is key to the success of the IT Service Portfolioli>
• A general understanding of Portfolio Value Management
• Basic concept of ranking services based on business impact/need and how to use this information to drive IT investments
Using a Usage Based Cost Model for Planning and Control Michael Davis, President
Resource Guidance, Inc.
The use of "tax code” funding for a cost model only allows for determining actual amounts (e.g., chargeback). The inconsistent pricing that results from this type of cost model cannot be used for forecasting or budgeting, and abdicates the end user responsibility in the planning process. Open Systems, Service-Oriented Architecture, Virtual Platforms, and other technologies further exacerbate the situation by creating conflicting cost models. These create confusion, frustration, and ultimately discontent from the end user. This situation can be remedied with a Usage Based Cost Model. Based on the asset’s investment cost and related annual expenses, the model can be used for annual forecasting, budgeting, and actual reporting (e.g., chargeback). In this session we will define the framework of a Usage Based Cost Model, and will discuss the following:
• Role of investment cost and related recurring expenses within the model
• Role of annual expenses and how they can be accommodated within the model
• Cost perspectives that can be used to form different metrics for Business and IT measures such as activity cost, cost of service, cost of delivery, etc.
• How the model provides for annual forecasting, budgeting, and actual reporting
• How to integrate the Usage Based Cost Model as part of the initial "buy decision”
At the completion of this session you will have a good understanding of the Usage Base Cost Model. This will allow you to define a cost model during an asset’s "buy decision” that is explainable, predictable, and can be used for subsequent forecasting, budgeting, and actual reporting activities.
How to Achieve IT Cost Transparency and Business Alignment Scott Fuzer, ITSM and ITAM Practice Leader
West Monroe Partners
Understanding how IT enables and affects the business is more important today than at any point in history. However, few IT organizations understand how the infrastructure and applications they manage enable Business Services, Functions, and Processes. Without this understanding, IT will continue to experience challenges in achieving cost transparency and accurate cost allocation or chargeback to the Business. They will continue to lack a clear understanding of their consumption of IT services, the correlating costs, and the ability to do accurate cost-benefit analysis of the services they provide. Join us for an informative session on how to empower the Business with meaningful and accurate IT cost information in order to make well informed business decisions and provide line of sight into the costs of their Services, Functions, and Processes, as they relate to IT expenditures. This session will provide an overview of how to integrate and leverage industry best practices such as IT Asset Management (ITAM), IT Service Management (ITSM), Project and Portfolio Management (PPM), Cost Allocation strategies, and Chargeback strategies to finally achieve business alignment and complete IT cost transparency.
Key Principles of Earned Value Project Reconciliation Strategy for Project Cost Management Ron Babich, Senior Vice President
This session will present key principles of Project Cost Reconciliation for capital projects including: Earned Value using performance metrics – Cost Performance Indicators (CPI), Schedule Performance Indicators (SPI), and other measures including Budgeted Cost of Work Performed (BCWP), Actual Cost of Work Performed (ACWP) and Budgeted at Completion (BAC). Gain insight into the fundamentals of using Earned Value Management (EVM) principles to create project visibility from operations to finance, while reducing costs. This session assists finance and operations to understand when a project is not on schedule and aligned with costs, and how to reconcile project indicators from ERP actual costs back to project controls and budget estimates.
IT Contracts Portfolio Optimization: Finding Hidden Opportunities, Avoiding Lurking Costs Chris Herman, Senior Consultant
"Over time and through corporate acquisitions, we and our affiliates have bought and maintained hundreds of software packages. We just don’t know what we have anymore.” You’ve heard that story before. Many managers have a sense that within their organization they are spending too much on software; that they have too many tools and applications with overlapping functionality governed by unconsolidated and unleveraged agreements. Companies may also be concerned, especially with innovations in technology delivery (from multicore processors to virtualization), that they may be out of compliance with their software licenses. The overall percentage of companies having at least one software audit has increased from 35% in 2007 to 65% in 2011. Caught between the budgetary challenges of inefficiency (over-licensing) and noncompliance (under-licensing), companies find themselves in a confusing place…especially because these problems are often treated separately in the literature. In this presentation we provide a practical approach that brings compliance and portfolio efficiency together. A systematic approach is presented in which the means of establishing and maintaining a software portfolio responsive to business requirements is wedded to the essentials of a manageable software license compliance program to help companies save money.
ComSci IT Financial and Business Management Software Demonstration Brian Stedman, Vice President
Today’s manual methods for aggregating all disparate source data required to handle the complexity of today’s IT Financial Management needs is overwhelming. Yet, many IT Finance executives are doing just that – spending all their time aggregating disparate data, rather than analyzing and "managing” the business of IT Finance. In this session we’ll talk about how automating the aggregation process with commercially available tools, like those available from ComSci, dramatically frees up valuable IT Finance teams to higher value tasks. This session will include:
• Introduction to the five key elements needed from IT Financial and Business Management automation tools
• IT Financial Maturity Roadmap
• Live demonstration of the ComSci ITFBM capabilities including automated costing, budgeting/forecasting, and consumption reporting/demand management
• Best practices from ComSci’s 57,000 users
We will show how, in partnering with ComSci and our award-winning solutions, we can help you solve even your most complex IT Financial and Business Management challenges.
ComSci, a leader in automated IT Financial Management Solutions, invites you to join us for some delicious food, refreshing drinks, and informal conversations in a relaxing atmosphere. This will be an enjoy- able opportunity for you to celebrate the 25th Anniversary of ITFMA in beautiful Scottsdale as well as network with other conference attendees and (while you’re at it) learn more about ComSci’s award-winning SaaS-based IT Financial Management capabilities.
Automation of IT Financial Management Ellen Kennedy, HP WW ITFM Sr. Product Manager
From Budget to Cost Analysis, each step of the financial management process can be made simpler through automation. This session will go over some of the steps you can take to automate your financial management process. From gathering IT budget and actual spend information to cost allocation, each step of the process can benefit from automation.
A Survey of Where We Were and Where We Are in IT Financial Management Ray Terlaga, IT Director
As ITFMA celebrates its 25th anniversary, it's a good opportunity to look at where we stand in IT financial management and what changes are taking place. Using data from surveys of financial managers at past ITFMA conferences and surveys of CIOs at Society for Information Management chapters from over the past five years we'll do just that. We'll emphasize what seems to be working, from the point of view of our customers in the larger organization, what's changing, and where the trouble spots were and remain.
Case Study: The Results of Our Investment in Service Costing James Amann, Business Planning Coordinator
Georgia State University
In 2006, our incoming CIO inherited a traditional top-down budget process. Academic and administrative clients saw our budget, but didn't understand all the services we delivered, and called us a financial black hole. Our lack of transparency fueled their distrust, and they accused us of "hiding" money and costing too much. Furthermore, they felt that IT developed technology for technology’s sake and resented their apparent inability to control their costs and service levels. From the IT point of view, we were unable to depict the budget impact of their ever-growing demands, and so faced constant demands to do more with less. Meanwhile, our managers didn't have the financial planning information they needed to manage the business of IT. With ITFM at the center of this maelstrom, we adopted a new business planning and budgeting framework that provides transparent, detailed and actionable financial information. We published a service catalog with rates, and an investment-based budget that forecasts the cost of all our products and services – both "keep the lights on" and speculative. Our cost model and tool allow us to explain where every dollar goes and to clearly illustrate the cost impact of current and future service offerings. Now two years into this process, each day more of our clients and stakeholders understand the limited resources available to them to "buy" our services, and the need for them to become engaged with us to allocate those resources in the most effective way possible. We've changed the conversation from, "Do more with less!” to "What funding is required?” Along the way, our leadership team became more aware of their businesses, their customers, and their costs, shifting to an entrepreneurial view of their jobs. This presentation will describe our experiences implementing service-costing and the returns on investments we've seen to date.
Note: During this session, there will be two lucky winners at a drawing for a free pass to the ITFMA 2013 Conference of your choice. You may be one of them!