IT Financial Management System Design – Tips for Guaranteed Success Workshop Bill Miller, Partner
This workshop is for the active practitioner or soon-to-be active practitioner of IT Financial Management. Learn how to define and design common infrastructure products and aggregate those products into common IT services. Define the structure including the expenses and operational data, solve common design problems, including life cycle management, and explore common chargeback model challenges, including how poor design leads to over/under recovery. This workshop is a hands-on, intensive learning experience. Participants should have basic ITFM skills, but even new learners will find many valuable tips and tricks to speed their ITFM capability development.
Cloud IT Service Financial Management: Everything You Need to Know Workshop Khalid Hakim, Cloud Operations Architect
How is cloud service financial management different from traditional IT financial management? How could CxOs realize the financial benefits for which they embarked on a cloud transformation program? How could CIOs modernize their IT financial management practice to accommodate cloud computing transformation projects? How does cloud service financial management become a key process to help businesses realize and recognize the value of their investment? This workshop walks you through the cloud IT service financial management cycle considering the various cloud models (Public, Private, and Hybrid). This includes the cloud investment planning and budgeting processes that address demand management and portfolio investment planning and decision-making. The workshop will also address the accounting and cost management processes and demonstrate how to build a costing model for cloud services, showing some of the best practices in transforming traditional IT capital expenditures (CAPEX) into more manageable and optimized operational costs (OPEX) to correctly show how to allocate costs of the shared cloud infrastructure and service consumption models (i.e. SaaS, IaaS, or PaaS). This workshop also discusses the charge/show back mechanisms and helps answer typical business/consumer questions such as "What am I paying for?” and "What am I getting out of it?” We will conclude with an IT financial management maturity model that helps you evaluate your IT organization’s financial management practice readiness for the cloud transformation and build a cloud-ready IT financial management process improvement roadmap.
Best Practices or Just Common Practices – How to Tell the Difference Workshop N. Dean Meyer, President
Many so-called "best practices" are nothing more than common practices. How can you discern the difference between truly the right thing to do, and simply what everybody else is doing? As Stephen Covey said, "Begin with the end in mind." If you have a clear vision of how financial and resource-governance processes are supposed to work, then you can evaluate specific practices that industry pundits may recommend in that context. Furthermore, a vision of the destination can help you formulate your ITFM strategy, and design solutions to near-term challenges as steps in an evolutionary path toward that end-state.
Drawing on Meyer's new book, Internal Market Economics, this workshop describes a guiding vision and a set of practical principles, and then applies them to describe highly effective, non-bureaucratic processes for:
• Chargebacks and show-backs
• Portfolio management
• Service cost modeling and rate setting
• Funding for infrastructure, innovation, and enterprisewide services
IT Financial Techniques for Planning, Controlling, Pricing and Decision Making Workshop Charles Johnson, President and CEO
CNJohnson & Associates, Inc.
IT Cost Measurement Techniques: This session describes the various types of IT costs required for financial planning, controlling, pricing, evaluation, and decision making. Examples of how to compute these various costs will be illustrated (e.g., resource costs, activity-based costs, product (business unit) costs, decision-making costs, etc.). Capital Budgeting Techniques: This session explains the tools and techniques for evaluating capital budget decisions: cost benefit analysis, payback period, simple rate of return, net present value (NPV), internal rate of return, NPV Profile (graphical analysis), Total Cost Approach, Incremental Cost Approach, and post-audit of investment projects.
Special Chargeback Costing Techniques: The session considers alternative methods for handling special billing issues: excess capacity or performance reserve, peak or shift processing, levels of service, and single versus multiple rates. The topics include theoretical and practical approaches.
Transparency as a Tool for Financial Analysis and Reporting Workshop Nancy Braun, Director, Technology Business Management
Zuna Infotech, Inc.
Full transparency can be frightening for those un-accustomed to working in this way, but in the current climate of transformation and efficiency, it is too powerful of a tool to be shunned. This workshop will cover the range of knowledge needed to succeed in an atmosphere of transparency, and how to encourage/grow the policy. We will start with how to choose what to share (internally, externally, by organizational level and staff level), how to build context sensitive Dashboards with complex security and interactivity, how and when to distribute financial information. We will look at real life pitfalls and roadblocks and how to avoid them for your initiatives. If you are tracking any efficiency or cost savings initiatives, or if you are looking for tools that can help to surface new opportunities for cost savings in the services you provide today, this workshop will empower you to leverage transparency as your newest power tool.
IT Managed Service (Outsourcing) Business Case Workshop Michael Clark
In today’s dynamic environment of budget, time-to-market and resource constraints, many companies are looking to outsource significant portions of their IT (and other) Business Units. This requires strategic decision making based on complete and dependable business case analysis. Failure to prepare and include the full range of costs will result in a flawed business case and missed commitments. This workshop will expose you to the full range of factors to be considered in developing a managed service outsourcing business case and an approach to:
• Define managed service and its implications on the business
• Identify outside assistance required for a successful initiative
• Assemble current state information for the RFP and develop a base case for analysis
• Prepare for discussions with potential suppliers
• Account for non-obvious and hidden costs associated with an outsourcing effort
What Does and Does Not Work Among the Various IT Financial Disciplines Seminar Penny Collen, Consultant
IT Finance and Chargeback
This seminar is a frank discussion of a variety of topics in the area of IT financial management and cost transparency. Which approaches really work? This will include time for you to bring forward questions about areas of concern or confusion. Topics to be reviewed will include but not be limited to:
IT Hardware and Software Asset Management Overview and Procedures Workshop Howard Hastings, Managing Partner and IAITAM Fellow
Capturing and Integrating Asset Procurement Data into Your ITAM Program: Proper management of IT assets ideally begins at the point of acquisition. Processes that effectively capture and utilize early-stage procurement information represent a significant portion of the overall benefit of end-to-end ITAM programs. Once implemented, it's far less costly than trying to piece together a complete picture based on information scattered about in spreadsheets, file cabinets, or the local landfill. The task may seem daunting, but the rewards can't be understated. We will discuss ways of expanding your ITAM program to encompass early data collection, and explore the resulting "downstream” benefits in terms of asset discovery/identification, compliance analysis, change management, asset retirement, and more.
Achieving Greater SAM Value with External Software Product Information: While commercially available SAM tools and internal processes are designed to support identification, tracking, usage measurement and definition of purchasing data for the software assets in your environment, most rely solely on data discovered within the organization. Manufacturer part numbers (SKUs) and Product Use Rights (PURs) are external market information that significantly enhances license compliance and optimization efforts. We will discuss how this information can be used to improve your program, as well as describe both the publicly and commercially available sources.
IT Cost Management Assessment with a Business Value Focus Workshop Tony Timbol, Vice President, Sales & Marketing, David Consulting Group and
Catherine Crowley, Research Fellow, Innovation Value Institute
Cost Management, to be a competitive weapon, has to do more than just calculate Total Cost of Ownership and other measures, important as they are. Cost Management has to connect the other financial capabilities of the business to produce and realize Business Value. What is the point of Cost Management if it does not help you compete in the marketplace, otherwise its just recordkeeping. The IT Capability Maturity Framework (IT-CMF) provides a unique Business Value focus on managing the IT budget and managing IT for business value. This half-day workshop is designed to help you understand what business value your IT Cost Management activities and capabilities could contribute to the business to help it succeed. The IT-CMF provides complete and comprehensive coverage of all IT capabilities in a business. It allows organizations to assess major strategic bands of performance. This workshop focuses on the IT Cost Management band of performance to provide participants an understanding of how mature organizations leverage their IT Cost Management functions to create business value. The workshop reviews the following key financial capabilities, their level of maturity, their integration, what benefits could be contributed to the business, their best practices, outcomes and metrics:
Financial Aspects of Running IT Like a Business to Demonstrate Value Workshop Ron Bradley, VP of Financial Management Consulting and
Boris Pevzner, President
This hands-on workshop addresses the foundation of proving "IT value” via implementation of a "Running IT Like a Business” framework. The workshop specifically covers: (1) defining "Services”, (2) calculating the unit cost of delivering every service, and (3) managing the service unit costs on an ongoing basis. The implementation of the "Running IT Like a Business” framework enables IT management to readily separate trends in service unit costs from fluctuations in service demand. The unit costs can then be benchmarked against industry peers or external markets. If IT service providers can deliver services with the same quality and at market-comparable unit prices, this provides a measurable indicator of "IT value.” Developing driver-based planning using unit cost modeling then enables ongoing cost management, sustaining year-over-year comparability with market-based benchmarks. This workshop will give you valuable information on:
• Running IT like a business
• Defining IT services and developing a service catalog
• Designing and implementing a consumption-based service cost model
• Developing a driver-based forecasting/planning discipline
• Implementing unit cost management and ongoing benchmarking
• Making service costing "transparent” to IT managers and business partners
• Creating an effective cost management discipline in the IT organization
• Defining the role of Service Manager
The workshop will be structured to provide you with the knowledge to begin implementing an effective service portfolio, unit costing, pricing and planning infrastructure for your IT business. You will get advice and examples from your workshop leaders and walk away with the knowledge that will enable you to immediately begin the transformation to running IT like a business.
Cost Modeling, Chargeback, Cost Allocation and Unit Costing Seminar Penny Collen, Consultant -IT Finance and Chargeback
Charles Johnson, President, CNJohnson & Associates
This is an opportunity to get your cost modeling, chargeback, cost allocation and unit costing related questions answered by leading experts and by your peers and fellow practitioners in this discussion forum. Hear what the discussion moderators have seen work and not work, whether it deals with why, how and what costs are developed and used for purposes of IT financial planning, controlling, pricing or decision making. Bring your questions and issues that 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.
Working with Your Legislature on IT Financial Issues Seminar Karlynn O’Shaughnessy, Senior Fiscal Analyst
State of North Carolina
Have you ever wondered how best to work with members of your state legislature to accomplish your organization’s goals? What can seem like a simple process rarely ever turns out that way. This seminar will examine how legislatures operate and how you can effectively be a part of the process. The roles and responsibilities of legislative members and staff will be discussed. You will learn how to successfully navigate your state’s legislature and avoid common pitfalls. The budget process will be reviewed, with an emphasis on information technology issues. The importance of thorough planning will be addressed, and you will have the opportunity to develop and explain your own approach. This seminar will be useful for both government attendees and vendors.