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IT Service Management vs. IT Financial Management: Chicken or the Egg? Jason Byrd, Strategic Advisory Services Partner
RPC Solutions, LLC
As organizations embark on ITFM initiatives, its IT Finance practitioners will inevitably run up against someone in IT talking about service management. And likewise when those in IT are working to transform their service delivery – oftentimes through ITIL – they invariably need to find out what those services cost. This presentation will help define these two disciplines in context to each other and will review some ways each can help the other out.
Managing IT Costs with a Chargeback/Showback System Christopher Dedera, Principal Consultant
RPC Solutions, LLC
Chargeback or showback systems can be more than a way to move costs from IT to customers. When designed appropriately the chargeback/showback system is an effective tool to manage IT costs for both business customers and IT operations. This session will discuss the required components of the chargeback system and provide examples of how to use chargeback information to identify cost savings. The key learning points are understanding the important design points of the chargeback system and reviewing some examples of how to use chargeback data to manage IT costs.
How to Build a World-class Service Catalog in Just Three Months N. Dean Meyer, President
There's no need to struggle for years to develop a service catalog that may or may not meet your needs. (And believe me, too many organizations do exactly that!) This session describes a straightforward process for developing (or refining) a comprehensive, pragmatic service catalog in just three months. The keys to success include a clear focus on what's in the catalog (including being practical about the attributes of catalog entries); the engagement of your senior IT leaders; clear principles and guidelines to keep everybody on track; and a well-structured process that walks your leadership team down the garden path, step by step. This session provides all of these keys. Keep it simple – sure. But keep it right, too. This session positions you to lead a service catalog effort with a pragmatic, results-focused process. Learn about the following:
• What exactly is a "service catalog”?
• Four common mistakes that kill the effort
• Starting from the right perspective: everybody is an entrepreneur
• Examples of catalog items in various IT lines of business
a leader in Cloud-based Cost Allocation and Chargeback Solutions
- Not available to family/guests
How? The step-by-step process Mary Lou Alter, Solutions Partner
In building a service-oriented organization, it is critical not only to define services in a business-focused way, but also to support those services with a cost model that provides visibility into the total cost of the services offered. For many organizations this is a significant change from the traditional technology-oriented approach to costing. It requires a hierarchical approach to costing, in much the same way a multi-tiered service catalog does. It also requires including vendor costs in the model, regardless of how the enterprise recovers or allocates those costs. This presentation will explain the approach and steps required, and will use case study examples of where and how this approach was used.
Enhancing Enterprise Strategy with Business Aligned Technology Cost Transparency Greg Martin, Managing Principal and Erez Abittan, Principal Consultant
This session discusses how to develop a business-aligned view of technology costs that shows the actual cost of delivering IT services to the business. The methodology aligns the output of the IT organization with the business by linking the traditional costing approach with service management that is aligned to the businesses. The principles of business aligned technology cost transparency, the steps to implement the solution, and how they are linked to the business architecture are discussed.
IT Finance BI – a Competitive Advantage or a Must Have? Cathleen Nilson, IT Financial Manager
This presentation will focus on best practices around enterprise IT Finance cost modeling, General Ledger process optimization, and Business Intelligence (BI) system solutions to support CIO decision making. A 3W approach will be used to discuss if IT Finance BI is a competitive advantage or a must have?
• What – common challenges that IT Finance groups are facing to support executive decision making
IT Financial Management Best Practices with VMware ITBM Suite Mike Bowe, Senior Sales Engineer
In this session we’ll talk about how automating the processes of collecting, aggregating and allocating IT spend with commercially available tools, like those available from VMware, enable ITFM practitioners to spend more time analyzing spend and improving value delivery. This session will include:
• Introduction to how ITFM tools work – data gathering, allocations, reporting, and automating otherwise manual processes
• How to get started and how long it can take based on your organizations IT Finance maturity
• Live demonstration of the VMware IT Business Management suite including modeling, computation, "what-if”, and analysis
• Best practices for getting more from an ITFM implementation including using peer and industry benchmarks
We will also include real-life examples of how our customers are using our solutions to solve their ITFM challenges.
HP Demonstration: Can a Tool Boost Your Career? Richard Hawes, Senior Manager
We know that improving financial management and IT's business performance and alignment is not just about the technology or any one tool; it must include the right approaches to people and process as well. However, we are finding that applying business intelligence approaches to ITFM by making them innovative and simpler to implement is making a huge difference to how our clients tackle the problems of managing finance around IT and telecommunication technologies. In this session we want to show you the latest innovations HP has applied to IT finance and provide examples of the way in which clients really have boosted their careers by taking a new look at financial management and helping the organization to build a performance-driven culture and to align with the rest of the business.
Live Demonstration of Cube Billing's Cost Allocation and Chargeback Software Brent Loewen, President
Cube Billing, LLC
Cube Billing is a new, cutting-edge software company, born from extensive lessons learned in one of the most globally complex IT cost allocation and chargeback environments. Cube Billing uses the latest technologies in its application, which was built specifically from the ground up to perform one primary core competency: allocation of costs. In this session, you will see a full demonstration of Cube Billing's cost allocation and chargeback software application. The cost allocation and chargeback system consists of a single repository that can be easily integrated into existing processes and tools to ensure a seamless workflow. The software can accommodate multiple data feeds to import data, integrate into existing ERP system's chargeback modules, create showback statements, and accommodate all costing methodologies. These features help to create end-end financial transparency between all internal organizations including sales, delivery, product development, account teams, and corporate & portfolio finance.
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.
ComSci, a leader in IT Cost Transparency/Financial Management solutions
IT Chargeback, Cost Allocation and Unit Costing Panel and Peer Discussion Charles Johnson, President, CNJohnson & Associates (moderator)
Kenneth Hoffman, Principal, Kenneth F. Hoffman, Inc.
Brian James, Director, VMware
Brent Loewen, President, Cube Billing
Cynthia Muth, Financial Management Consultant, Pacific Life
Christopher Panneck, Director, KPMG LLP
This is an opportunity to get your chargeback, cost allocation and unit costing related questions answered by experts on the panel and by your colleagues in the audience. Hear what the panelists have seen work and not work, whether it deals with why, who, how and what is allocated or charged back to the clients or business units. Bring your questions and issues you are wrestling with at work and discuss them with the other practitioners in the audience. Here is a chance for those of you with extensive experience to share your lessons learned with colleagues in your profession.
Cloud Computing: Are We There Yet? Brian Jeffery, Managing Director and Bob Simko, Executive Director
International Technology Group
This session analyzes actual cloud applications, deployment patterns and user experiences. It highlights the importance of distinguishing between apparent and real application opportunities as well as provides recommendations on identifying opportunities, quantifying benefits and determining expenditure priorities. A checklist of issues are presented that you will need to understand for your overall IT cost model in dealing with cloud suppliers.
Simple, Inexpensive and Self-Correcting Approaches to Break-Even Chargeback Kenneth Hoffman, Principal
Kenneth F. Hoffman, Inc.
No one doubts the need for highly accurate unit costing and chargeback approaches in very competitive environments where customers have meaningful choices of providers. But these methodologies and systems can often be too expensive for their incremental benefit, or too refined for a very simple need. Often only a simple chargeback methodology is needed, one that is inexpensive to develop, satisfies all parties as to its reasonableness in design, and possesses an inherent ability to assure a systematic break-even in recovery. This presentation provides a simple, self-correcting approach to determining unit costs, establishing prospective unit rates, and institutionalizing simple, reliable prospective adjustments to ensure break-even recovery. See for yourself the advantage of simplicity using the real example of the Minnesota Department of Human Services’ Receipts Center, a small $1.5 million remittance processing operation that needs simple, easily replicated unit rates for a few dozen customer agencies.
Cost Allocation in a Software Defined Datacenter Michael Davis, President
Resource Guidance, Inc.
Increased constraints for operating capital are pushing the next wave of server consolidation towards Software Defined Datacenters (SDD). This advanced technology allows for the movement of many new and existing servers into a single hardware platform that is managed by specialized software. Diminished operating capital is also increasing the need for greater IT Cost Transparency. Ironically, as server deployment solutions become easier, true IT Cost Transparency becomes more difficult. When servers were based on a single set of hardware and software, it was easy to identify the owner (users), and thus allocate the costs accordingly. The trend toward consolidated hardware, software, and support complicates the Cost Allocation process. As more business units share an SDD, the once clear lines of ownership become very blurred. The bottom line of SDD Cost Allocation is identifying who is using what and when, integrating financial and operational data, determining the appropriate costs, and understanding what value these services are to the business. In this session we will:
• Define what is a Software Defined Datacenter (SDD)
• Discuss the issues related to consolidated hardware, software, and support
• Discuss the Cost Allocation issues associated with an SDD Review Cost Allocation methods
• Discuss the integration of financial, operational, and performance data
Service Life Cycle Management: Managing IT as a Business for the Business James Holman, Client Services Director
With the proliferation of cloud based solutions, the defining, managing, and retiring of services has become increasingly important. This three-part presentation will go over the components of IT services, give a view into the IT Service Portfolio, and walk through Service Life Cycle Management by tying service components to usage based accounting. We will analyze Business to Technical Service mapping including clear delineation of the service component map. The presentation will include defining services at the business level and decomposing those services all the way down to the Configuration Management System that houses the relationships of the service components back to the services that are familiar with the Business. Join us to walk through this comprehensive approach for a Service-based Cost Model that will resonate with the Business on how they utilize IT services.
FAQs on Cost Modeling: A Panel Discussion Brian Stedman, Vice President, ComSci (moderator)
Michael Davis, Consultant, Resource Guidance
Christopher Dedera, Principal Consultant, RPC Solutions
Brett McClure, Strategic Consultant, Humana, Inc.
Dean Meyer, President, NDMA, Inc.
Neil Thibodeau, Senior Director, EMC Corporation
Some questions come up in session after session, and the answers may seem confusing or even conflicting. This panel puts together some of IT Financial Management’s leading authorities on cost modeling, and runs the most frequently asked questions by them. You'll have plenty of opportunity to submit your own questions, and you’ll find other attendees raising questions that are relevant to you too. We expect questions like: What's the appropriate level of detail in a service catalog? How do you amortize various types of fixed cost? How do you price discretionary projects that require contractors? How do you gain funding for IT infrastructure and innovation? Be forewarned...you may hear some controversy since these authorities come from differing backgrounds and perspectives. But no matter what happens, you’ll certainly leave with lots of insights on whatever questions are on your mind.
Cloud Strategy Starts and Ends from a Financial View of IT Mark Bradley, Senior Product Manager
The cloud fundamentally changes how IT is measured and managed. In the past, IT organizations could simply cross-charge their costs and report on service-level agreements (SLAs). Today, business customers can go to Amazon, Azure or other providers’ web pages and see prices for servers, storage, databases and more. This means for the first time, IT needs to have public cloud-comparable costs for service options. Only by doing this, can IT generate a cost-effective strategy that spans public and private clouds. In this session, we will discuss how IT can build up its dedicated and private cloud costs that can also be used for chargeback and showback. We will also demonstrate how to put cloud costs together.
Automating IT Finance Demonstration Robert Mischianti, Vice President
Nicus Software, Inc.
M-PWR enables customers to transition from spreadsheet-based IT financial management tasks to a process-centric application that delivers automation, scalability, detail audit tracking, web-based reporting and much more...Define and validate your own processes, integrate all of your data elements in one place, satisfy stringent audit requirements, and automate to save time.
ComSci’s Software Live Demonstration as a Service & Business Process as a Service Offering Along With a Question & Answer Session with a Prominent Customer Brian Stedman, Vice President and Jeff Yoder, Vice President
This session will share best practices for how to optimize IT resources utilizing one of the market’s successful software products. Through the lens and testimony of a prominent and successful customer, attendees will be guided through each of the following Business as Service solution components:
• IT Financial Management – Facilitates the budgeting and forecasting requirements within an enterprise. Most organizations do this via Excel, which is not scalable or efficient and repeatable.
• Service Costing & Benchmarking – Provides the capabilities to allocate IT department and GL costs to customers’ products, services and application from their service catalog.
• Bill of IT – Provides a view of business unit costs to report to the business unit management the cost, quality and value of the IT services each business unit consumes.
• Analytics, Reporting & What If – These capabilities are included for all modules and include an "out-of-the-box” set of standard reports, graphs and dashboards; rate & what if analysis, a simple and easy to use reporting and graph wizard to support filtering, pivoting and download capabilities, and an executive dashboard manager with the ability to create individual and multiple dashboards using "drag and drop” functionality.
Best Practices: Investment-based Budgeting Model – What, Why, and Exactly How To Do It N. Dean Meyer, President
Investment-based budgeting means presenting a budget for what you want to SELL to the enterprise (not just what you want to spend). The traditional approach to budgeting – forecasted spending by cost center and expense code – causes many serious problems, including "do more with less,” unrealistic expectations, poor alignment with the business, mistrust, unfair accusations that you cost too much, customers attempting to micromanage you, and more. Talk to your CIO – it’s a political nightmare. Investment-based budgeting is the antidote. It explains precisely what the business will get for a given level of funding. It builds appreciation of the value you deliver. It induces the business to defend the IT budget. It links budgets to the needs of the business (not just "last year plus/minus a percentage”). And it manages expectations. This session defines what investment-based budgeting is, why it's so important, and how to implement it. It explains how IT financial managers cannot only solve pressing problems felt by your IT senior management team, but also you can play a strategic role in the leadership of IT. Learn about the following:
• Why traditional budgeting causes problems
• What investment-based budgeting is
• Which costs go into the products/services you propose to sell, and which costs do not
• The steps in the budget process
• How to link an investment-based budget to traditional enterprise budget systems
• How investment-based budgeting puts ITFM at the center of IT strategy
Back to the Basics in Chargeback Charles Johnson, President and CEO
CNJohnson & Associates, Inc.
This session will be an interactive discussion about the basic elements of chargeback – Why do we do it? What are the results? How do we define a successful chargeback process? How do we achieve success? Bring your experiences and ideas and participate in an open, lively discussion.
A Chargeback Methodology to Help Increase Asset Efficiency Eistein Fosli, Founder
Open iT, Inc.
Providing an accurate and fair chargeback model based on consumption helps you create cost transparency and increase asset efficiency. It is also perceived as fair and accurate by the user community. A Forrester study showed that initiatives that improve the efficiency of IT was rated at the very top: It was rated as "high and a critical priorities for 2012” and will continue be a top priority for 2013. We will discuss how a usage based chargeback model can be an important step to achieve efficiency in IT. Special attention will be given to chargeback models for software application usage and how you can automate the invoicing to avoid time consuming, manual work.