Journal of IT Financial Management
Editor: Susan J. Quinlan
IT Financial Management Association: This membership association was founded in 1988 to educate and unite professionals employed and interested in the financial management of information technology organizations.
Journal: The Journal is the official publication of the IT Financial Management Association. It provides members with specialized financial literature for this unique profession and keeps them informed about Association activities. The Journal is published in the Spring, Fall, and Winter.
Membership: Association and membership information is available on our web site (www.itfma.com) or by calling ITFMA at (805) 687-7390. The annual fee for the January to December membership is $100 per person or $500 for each 15 members.
Association Benefits: Association membership entitles individuals to the Journal of IT Financial Management, membership directory, peer discussion forum (listserve), discounted conference and seminar registration fees, certificate program enrollment, and job search service.
Author Information: The Journal of IT Financial Management (ISSN 1532-3870) invites submission of articles of interest to our Association membership. For information about authorship, write to or call the IT Financial Management Association (ITFMA), Post Office Box 30188, Santa Barbara, CA 93130; (805) 687-7390.
Subscription: Association membership dues include a free one-year subscription to the Journal. This publication is an exclusive publication for members and is not available to the general public.
Copyright © 2011 by the IT Financial Management Association.
VOLUME 8, NUMBER 1 SPRING 2011
Beyond Chargeback: Internal Cost Transparency for Better Decisions
A BPM Partners White Paper
Many large enterprises, especially financial services companies, suffer from a fundamental hole in their internal accounting and cost controls when it comes to cost allocations. Specifically, their allocations of back-office and mid-office operations are not accurate, and there is often poor cost and usage control over those operations. The economic downturn that began in 2008 put tremendous pressure on profits and costs, resulting in sharper awareness of this gap. At the same time, reducing costs by sharing resources has gained in popularity. As a result, indirect costs are under greater scrutiny by those who make use of allocated support services.
Calculating the True Costs of Cloud Computing
Louis Takacs, Vice President of Product Development, ComSci
Many organizations have embraced cloud computing and virtualization technologies because of the cost savings offered and the speed and agility at which services can be procured. As more organizations move towards cloud computing, they need to ask: Do we understand the true total cost of ownership of a cloud solution?
Developing an IT Performance Management Framework
Robert A. Ryan, IBM Global Business Services
The capability of IT organizations to develop, and successfully adopt, a meaningful performance management framework is increasing, but the alignment of IT performance measures to organizational strategies and related measures often proves elusive.
Negotiation in Large Organizations
Jon Maxim, President, Maxelerate Systems Ltd.
Lessons Learned in Understanding IT Services, Processes and Costs
Rodney Le Cloux, ITS Budget Coordinator Wisconsin Public Service Corporation, Corporate Services, and
Andrew Muras, Vice President, BAE Systems
WPS Resources Corporation is a publicly traded electric and gas energy company conducting business in the United States and Canada. The utility industry has been reacting to deregulation for over a decade now. Consequently, there have been numerous mergers and acquisitions. Because of this, many internal service organizations have been forced to look at how they deliver and price their products and services. Although not required at WPS, it was considered an opportunity to see how the products and services could be quantified and priced and what value they delivered to customers.
Three Ways to Avoid Failure by Simplifying Telecom Expense Management
A Telesoft White Paper
Today, everyone is more risk averse. Although it seems like the economy is beginning to recover, concerns and uneasiness about the future remain at the top of the mind for people. Telecom Expense Management (TEM) programs can produce significant savings without the pain of layoffs or program cuts. Unfortunately, the path to successfully implementing a TEM program is not easy.
VOLUME 8, NUMBER 2 Fall 2011
Multidimensional Cost and Recovery
Chris Dedera, President, CRD Business Consulting
A fully developed ABM system enables the IT organization to view costs and the recovery of those costs in many dimensions. Costs can be seen by customer, by location, by platform, by service and by application to just name a few. The multidimensional view of costs allows the IT organization to pinpoint where and why costs are being driven up. The identification of the source of a cost increase becomes the first step to understanding why costs have increased.
Assessing Your Current Telecom Expense Management Implementation
Gary Eckert, President and CEO, Telytics, Inc.
"Best in Class companies are achieving a 40% reduction in telecom related expenses with robust TEM solutions...”
Using Activity-Based Costing to Improve Shared Services Allocations
Brendan Fox, Engagement Manager, Acorn Systems, Inc.
Companies that want to increase profitability or even maintain their existing level of profits in the current economic environment are shifting their focus toward cost reduction instead of revenue growth due to the overall lack of spending by consumers. However, organizations must realize that they cannot blindly slash costs. In order to have a successful cost reduction strategy, organizations need to understand as much as possible about their current cost base. A great way to gain this cost transparency is to conduct Activity-Based Costing (ABC) studies.
How to Implement Metrics for IT Service Management
David Smith, President, Micromation Canada
We are often too busy to ask for directions. Implementing a measurement framework should help align IT with the business objectives and create value through continual improvements. This helps us create a roadmap and keeps us from getting lost. In this article, David A. Smith presents such a framework.
Can TEM SaaS Solutions Lower Telecom Expenses For Mid Market Companies
Nancy Peckham, Founder and CEO, Valicom Corporation
All of this growth and opportunity in the telecom industry has left mid-market businesses ($10M to $500M in revenues) in a state of confusion, and with an unanswered need for greater control over their telecom expenses.
IT Asset Management – Watch Your Assets
Linda L. Briggs
Don't send your money down the, well, you know. Asset management tools can save dollars wasted by expiring leases and redundant licenses, but they can also team up with network management and security tools for the ultimate in control.
VOLUME 8, NUMBER 3 Winter 2011
Understanding Your Financial Data: Tips and Tricks for Achieving 360º Visibility
Howard Hastings, Senior Director, Blazent
When it comes to producing IT financial reports, the chief complaint heard is that too many data values are either missing or inconsistently represented. This article will present a bottom-up approach to developing a data model that uncovers the available data sources within each organization.
The IT Budget Makeover
Nick Goss, Consultant, Azzarello Group
This article focuses on "how to do it.” It focuses on increasing the IT department’s credibility with business leaders, overcoming the organizational hurdles and identifying the right data sources.
Tips and Techniques for Getting the Most from Your Supplier Agreement
John Fisher, Chief Value Officer and
Jeffrey Gordon, VP Value Creation, NET (net)
Forensic approaches have been exhausted, and suppliers have responded disruptively by increasing prices and maintenance fees, modifying their policies and changing their interpretation of agreements. Negotiations are seen as the number one way to reduce costs.
Financial Project Management Communication Skills
Brent Loewen, Senior Manager, Rackspace Hosting
Poor communication is one of the biggest reasons why a project fails. Use an "elevator speech” to help team members practice framing the need and articulating the project vision in a clear, simple and meaningful way. It is the communication of clear purpose that helps to overcome resistance and accelerate projects.
Using Chargeback to Make Smart Business Decisions
Mark Pringle, Managing Consultant, IBM Corporation
Why do I care about chargeback? Does chargeback make you smarter? Is there a return on investment (ROI) from it?
What is an IT Driver-Based Rolling Forecast?
Ron Bradley, Senior ITFM Consultant, Beyond EPS
What is a rolling forecast? What is driver-based forecasting?
Successful IT Governance
Brian Jeffery, Managing Director, International Technology Group
We could not find a shared view on the definition of "IT governance”, but these are some definitions.
Piloting a Financial System Solution
Brent Loewen, Founder & President, Cube Billing, LLC
One of the best practices for implementing new financial management systems, such as chargeback and others, is to run a pilot before full implementation. This article is about why, when and how to pilot.
What Every CFO Should Know About Telecom Expenses
Kevin Donoghue, President, Telesoft Corporation
There are seven things every CFO should know about telecommunications expenses.