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Workshop and Seminar Agenda

Monday, April 14

7:00-8:00 a.m.

Conference Registration and Full Breakfast Buffet

8:00-11:45 a.m.

Our IT Cost Transparency Journey Workshop (4 hours)
Robert Cook Jr., Director, IT Business Management and Sujoy Mukherjee, Business Solutions Architect

Depository Trust & Clearing Corporation
This will be a 10 year journey describing where we started and where we are today regarding IT Cost Transparency. We will talk about the obstacles/challenges we incurred along the way and how things have changed in the last 2-3 years (more focus on IT Cost Transparency and the value of IT). We will also be presenting our cost model from Expenses to Product Allocation and the logical flow a company should take when trying to implement an automated cost model. Topics of discussion are:
1. Who we are, what we do
2. The importance of IT cost transparency to our firm
3. Our Journey - Corporate buy in, major milestones and obstacles, automation
4. Our Cost Model - Expenses, IT technical services, consumption methodologies, consumers (Business Services)
5. Next on our plate

Service-based Cost Modeling, Showback and Recovery – Hands-on and Deep-Dive Workshop (4 hours)

Khalid Hakim, Operations Architect

VMware

How is Software Defined Datacenter (SDDC) Service-based costing different from the traditional IT cost accounting management? How could CxOs realize the financial benefits for which they embarked on cloud transformation programs? How could Service Managers and IT Financial Managers understand the true costs of their services they provision to their consumers? How does service-based costing actually work? What is the impact on the way that Finance departments do their work today? How can you improve cost transparency in a meaningful way that helps demonstrate IT value and rationalize service demand and consumption? This workshop walks you through the recommended practices to help you build a service-based cost model that fits your Cloud and SDDC based environments. We will work on an IT organization example, and walkthrough the steps from defining a cloud service to punching the numbers and finalizing calculations, including creating a service-based cost model and structure, discussing various consumption and allocation methods, identifying related cost drivers, classifying them based on variable, fixed, CAPEX, OPEX, direct, and indirect, and then cost allocate them based on services and units. Also, this workshop addresses some of the better practices around cost showback/recovery and the various applications and scenarios in real life along with cost allocation to business units and the Bill of IT.

IT Financial Strategy Maps: Creating and Building Models for Driving Performance to Deliver Value to Customers Workshop (4 hours)

Terence Okus, Principal Consultant

EMC Consulting

When tasked with creating a strategy for IT Financial Management, the balanced scorecard can be viewed as a framework for describing strategies that create value. This is due to several important elements: financial performance, customer value proposition, internal processes, learning and growth objectives. The Strategy Map acts as a means for providing general representations of the cause and effect of the objective linkages found in the balanced scorecard, which in turn transform the balanced scorecard into a device that defines broad categories and themes. This workshop will provide an introduction to the use of Kaplan and Norton’s balanced scorecards as well an introductory means of creating ITFM strategies using the balanced scorecard method. You can expect to achieve in this workshop the following objectives:

• Develop an awareness of balanced scorecards

- what the framework looks like

- what goes into creating a balanced scorecard

- its application to the development of an ITFM strategy

• Develop an understanding and create foundational knowledge of ITFM strategy maps

- why the use of visual representation is preferred over the balance scorecard

- how the strategy map can provide a uniform and consistent way to describe an ITFM strategy

- who is the ideal stakeholder to create and own the process of creating strategy maps

- what goes into making an ITFM strategy map

- when and how to apply a strategy map

- where the strategy map provides the best return on effort

• Leave with a collection of tools and templates for creating ITFM Strategy Maps and Scorecards

- strategy map template that provides a normative checklist for a strategy’s components and interrelationships

- balanced scorecard quick reference guide

- procedural document on how to create a strategy map and its integration to balanced scorecards

- a case study that illustrates the design of a private-sector strategy map and scorecard

12:00-12:50 p.m.

Buffet Lunch

1:00-3:45 p.m.

In the Beginning [of Chargeback]…Workshop (3 hours)

Carissa Albers, Vice President

Commerce Bank
If you are struggling to start a chargeback project, this session will cover one IT Financial Support group’s journey in learning to translate “IT speak” to “Accounting Speak”, building a chargeback model from nothing, and developing rates everyone could live with. Lessons learned include realizing that, where the rubber meets the road, best practices aren’t always available and being “directionally correct” can be a reasonable substitute for accuracy.

The IT Financial Manager, aka: Foreign Language Interpreter: When you took this job, did you expect to be a foreign language interpreter? Acting as a liaison between IT and the business side of your company is a significant part of the job. It's like being the arbitrator between two countries that have different cultures. Each country is unique and your job is to ensure that the needs of both parties are met within the limitations of your human and technology resources, your corporate policies and your company culture. Your solution clearly has to be formulated specifically for your situation. This is a review of how we've evolved our budget process to meet Corporate Finance and IT expectations within our unique limitations.
The Making of a Chargeback Artist: For those struggling to start, this is about our journey that began with a four-month timeline, $100k and one FTE. This is a personal experience working within time, budget and culture restraints to make a sustainable, reasonable chargeback process from the ground floor. This review won’t show you how YOU should do it, but will explain how we worked with our particular culture and obstacles to get something everyone could live with…the people with the checkbook, the internal customers, the corporate finance group and IT.
Down in the Dirty Details – Spreadsheet Exercise in Deriving Rates Manually: For chargeback novices, this is a detailed walk through of our rate calculations using only an Excel “cost pool” spreadsheet. With one FTE, 40 IT cost centers with $75 million in expense, a culture that puts most of the financial responsibility for IT onto the finance areas, and a good invoicing tool but little resources to utilize it fully, we had to develop a way to calculate rates to recover IT expenses. This is a detailed look at the spreadsheet and how it is populated.

All of the ITFM Component Systems and How They Fit Together Workshop (3 hours)
N. Dean Meyer, President

NDMA, Inc.

Despite users’ hopes and vendors’ claims, there’s no ONE system that satisfies all the needs of IT Financial Management (ITFM). Nor will there ever be. The many distinct business and financial processes require characteristically different (but integrated) systems, as well as feeds to and from other systems whose primary purpose is other than ITFM. To determine what ITFM systems you need, start with the processes you’re trying to automate. This workshop lays out all the processes that make up a comprehensive system of IT Finance – budgeting, rate-setting, chargeback, governance, dashboards, asset management, expense management, total cost of ownership, and more. It defines each and shows how all of the distinct (often parallel) processes fit together.

This map of ITFM processes is then translated into an architecture of ITFM component systems and how they’re integrated is explained. The workshop will examine each system component, and drill down to the kinds of tools involved. In particular, it will explore the difference between planning tools and actuals-tracking systems.

Finally, we’ll discuss ITFM strategy – what comes before what. It doesn’t make sense to implement systems that won’t deliver their intended benefits without data feeds from prerequisite processes and systems. Start where you can do the most good, and where your investment will pay off quickly. This workshop will make you a smart buyer, and a smart implementer, of ITFM systems and processes. The workshop covers:

Framework – all the financial management processes on one page, and how they fit together

• Architecture – systems needed within each process, and how they’re integrated

• The characteristic difference between planning and actuals systems

• The ideal sequence – what comes before what

The IT Service Portfolio for IT Financial Managers Workshop (3 hours)

Nancy Braun, CEO

Thavron Solutions

This workshop is a discussion and review of the full lifecycle of IT Service Portfolio, how ITFM contributes and is impacted by a best practice Portfolio Management Approach for IT Services. Topics will include:

• What is the Service Portfolio and why does your business need one?

• What does the maturity curve look like?

• How do I measure my IT Services Portfolio?

• Blending Finance, Project Management and the Traditional IT Service Management towers for better business insights

There will be an open discussion of current state, roadblocks and success stories from those in the audience, as well as a Q/A for particular company cases.

Tuesday, April 15

7:00-8:00 a.m.

Conference Registration and Full Breakfast Buffet

8:00-11:45 a.m.

Strategies for Navigating the Political and Budget Challenges with “IT as a Service” and “IT Consolidation” Workshop (4 hours)
Brenda Berlin, CFO and Debbie Thibault, Director of Service Finance

State of Colorado
Over the past 10 years the Office of Information Technology for the State of Colorado has been treating IT like a business by identifying expenditures into “services” and allocating them to State Agencies using service metrics. In 2008, legislation set into motion a statewide IT consolidation, effectively merging 15 individual Executive Branch IT departments with the Office of Information Technology to form the Governor’s Office of Information Technology we have today. Through these experiences we have traversed a myriad of political and budgetary challenges and gained a wealth of knowledge regarding which strategies did and did not work. Whether you’re in the Public or Private sector, we are all facing similar challenges in transforming IT into a “business within a business” and dealing with an ever-changing and consolidating environment. Plan on rolling up your sleeves and getting to work on an “actionable” strategy to move your organization to its next level.

IT Cost System Fundamentals Workshop (4 hours)

Michael Davis, Consultant

Resource Guidance, Inc.

The crafting of a Cost System is not an easy task and is prone to pain and hardship. The reasons vary, but they are generally due to unrealistic expectations, unintended consequences, and a lack of understanding and commitment. To complicate matters, there is very little information available related to IT Cost Systems. Those seeking to craft a cost system “hope” there is a “cookbook” approach they can use. Unfortunately, there is no universal design for a Cost System. Each one is unique and must meet expectations, conform to business culture, and deliver within its constraints. There will be compromises and tradeoffs, and each must be identified, debated, and agreed upon. This workshop will not only benefit those walking down this path for the first time, but also those who desire a better understanding of how to craft a Cost System. In this interactive workshop, the attendees will:

• Get a review of the traditional issues and expectations related to any Cost System

• Complete a “Cost System Evaluation” that quantifies their Cost System “readiness”

• Discuss and understand the five forces that influence any Cost System

• Identify key issues and concerns related to their business culture

• Understand the difference between expectations and reality, and how to manage them

• Identify and discuss options and choices that fit their needs

• Complete a planning worksheet that identifies their key issues

Why Simple Allocation is Better Than Usage Based Chargeback is Better Than Simple Allocation Workshop (4 hours)

Jeffrey Ebbrecht, Senior IT Specialist

IBM Corporation

Yes, the title sounds circular, but that is the point. Not all chargeback models are created equal and not all chargeback models are better than others. In some cases each model can be argued it is better than any others based on customer application, asset classes, strategy, budget, and available skilled personnel. In this workshop we will go through the benefits and challenges of these two models specifically and cover a few of the “hybrid” models that are out there. In addition to the benefits and challenges, we will cover real examples and how each model may handle them to determine what really is the best model. Since this is a workshop, come prepared to participate as well and have an open and lively discussion.

12:00-12:50 p.m.

Buffet Lunch

1:00-3:45 p.m.

Financial Management for Running IT As a Business Workshop (3 hours)

Gates Ouimette, Principal

CrossWaves Ventures

Today, with Apple and Google leading the BYOD-based “consumerization of IT” and Amazon commoditizing the cloud, business users are no longer limited to their internal IT for applications and infrastructure. With analyst firms such as Gartner forecasting the CMO to have the majority of IT spend by 2017, what can IT financial management professionals do to support an increasingly “agile” technology organization? Specifically, internal IT and IT financial management must take a leadership role in defining how IT financial management as a discipline must evolve, with a focus on industry best practices, starting with transparency across RAMP2 (reliability, availability, maintainability and price/performance). This workshop will provide an overview of this evolution and actionable strategies for the IT financial management professional to use, including:

• Tools/technologies that can be used to begin enabling this transparency

• The agile IT and business architecture required to dynamically support this in the future

• Specific sample areas of IT focus as IT evolves from an operator to a broker of IT for the business

• Organizational impact

• The role of innovation

How to Calculate the True Cost of IT Services Workshop (3 hours)

Brian Stedman, Vice President

ComSci

This hands-on workshop will address the foundation for managing technology and shared service costs. You will be guided through a process that is intended to help today’s IT finance and business management executives to be successful. Learn how understanding the unit cost of delivering every service to customers enables IT management to benchmark and trend performance against industry standards. You will also understand how IT leaders can readily answer the question of whether the cost of delivering services is due to increased demand, increased delivery costs, or both, while providing assurances that they are increasing value for the company. This workshop will provide you with valuable information and actionable tips to:

• Define the cost drivers of the IT business

• Align cost recovery with consumption

• Understand the benefits and results of unit costing

• Design and build several multi-dimensional models with unit costing

• Deploy best practices that stick

The workshop is structured to provide you with the knowledge to begin developing an effective service portfolio, unit costing, pricing and planning infrastructure for your organization. You will get advice and hear practical case studies from the workshop leaders who have successfully implemented solutions in several companies. You should expect to be able to immediately begin a service–based unit cost design and implementation. To further enhance the information shared in the workshop, you will gain insight into service-based cost model case studies and real-world success stories with actual timelines, project milestones, benefits, processes, and results. The workshop will also address issues including how business demand impacts IT decisions, what are the key metrics, what varying allocation alternatives make the most sense, and how data quality affects the financial transparency equation.

IT Financial Management for the Corporate and Government Sectors Workshop and Peer Discussion (3 hours)

Charles Johnson, President & CEO

CNJohnson & Associates, Inc.

Since the term “IT Financial Management (ITFM)” was originally coined by ITFMA, there have been many misconceptions and interpretations of the scope of financial disciplines that should fall under the umbrella of this term. This workshop will identify each of the key financial disciplines necessary for successful IT Financial Management based on previous case studies. We will discuss how these disciplines or “building blocks” of ITFM work together for the best results. Among the disciplines are strategic planning, project evaluation, project planning and tracking, resource planning, capital budgeting, expense budgeting and reporting, asset management, chargeback, product and service pricing, activity-based costing and management, balanced scorecard, and benchmarking. Bring your experiences and questions. There will be time for open discussions for all of us to learn from each other.

IT Financial Management Practitioner Experiences

& Case Studies Conference Agenda

Wednesday, April 16

7:00-8:00 a.m.

Conference Registration

and

Full Breakfast Buffet sponsored by Nicus Software,

a leader in IT Financial Management Solutions

8:00-8:45 a.m.

Financial Reporting Tools

Robert Amdahl, IT Business Professionals

and Danielle DiGregorio, IT Business Professionals

Sandia National Laboratories

As the financial management profession continues to require better, quicker data analysis, IT financial management professionals must find innovative solutions to allow for greater efficiencies. This presentation will go through various techniques to spark ideas on how others use tools such as Microsoft Power Pivot, Microsoft SharePoint forms, and financial forecasting methods. You will leave this session with ideas on potentially new ways to handle your IT financial management efficiency needs.

9:00-9:45 a.m.

Challenges of Treating IT as a Business Within a Business

Brenda Berlin, CFO and Debbie Thibault, Director of Service Finance

State of Colorado

Those in the business and government sectors face the same political and budget challenges when you treat IT as a business within a business and offer IT as a service or do IT consolidations. This session describes our experiences with treating IT like a business by identifying expenditures by IT service and allocating them to organizational units using service metrics. Our experiences with merging our various decentralized IT departments into one Office of Information Technology are also discussed.

10:00-10:45 a.m.

Effective Financial Management – What the People Say!

Robert Stroud, Vice President, Strategy & Innovation

CA Technologies

One of the dreaded words in IT is “chargeback.” Many of you live with that every day, but in an era of cloud and outsourcing, can you escape it? Recently we undertook an independent industry survey to understand how effective financial management works within enterprises and developed a model to determine the value of financial management according to their business, size and segment amongst other metrics. The speaker will share with you the results of the survey and discuss how they may impact you moving forward with your investments in IT enabled business value.

11:00-11:45 a.m.

An IT Financial Management Framework for the Real World
Robert Mischianti, Vice President

Nicus Software, Inc.
Even as the IT Financial Management market matures and standard practices begin to emerge, large scale enterprises have been implementing, executing, learning and evolving as they go. This presentation will review several successful frameworks used by these organizations for financial planning, budgeting, forecasting, benchmarking, service costing, cost allocation, chargeback and more.

12:00-12:50 p.m.

Buffet Lunch

1:00-1:45 p.m.

Practical Lessons from the Trenches: Where the Land Mines Are
Alan Payne
AVP, Technology Business Management
Navy Federal Credit Union
This presentation is a case study about my two and a half year journey in implementing ITFM from scratch by highlighting successes and identifying the land mines that nearly derailed our efforts. Topics will include:
• Clearly defining what the end goal is
• Laying out the roadmap
• No amount of executive support is enough executive support
• Discussions within IT and with the business
• The battle of running IT as a business within a business
• What’s in a tool
• Our next steps
Communication pieces, artwork, and other items that were valuable as we went on this journey will be shown too.

2:00-2:45 p.m.

IT Chargeback, Cost Allocation & Unit Costing

Kirk Zerkle, Cost Allocation/Recovery Manager
Southwood Shared Resource Center
SSRC has developed a service costing process that leverages a double step down allocation methodology to accurately and effectively price IT services. This standardized methodology provides a trace-back capability to dissect cost components of a service and trace-forward capability to analyze the impact of new or altered budget line items. The process is also compliant with the OMB Circular A-87. This session will review the benefits and structure of this process and include a deep dive into the calculations.

3:00-3:45 p.m.

Assessing IT Costs and Options in an Acquisition: A Case Study

Michael Harris, President & CEO

David Consulting Group

This is a case study about an acquisition with the intent of turning around a business that had a history of making software choices that were placing a significant load on their costs. The intent was to take advantage of new ways of implementing and paying for IT that would make the difference between a successful business case and continuing a loss-making “business as usual.” IT options were investigated in order to balance the effectiveness of the systems with total cost of ownership and the business case implications for CAPEX and OPEX. There are lessons to be learned by all attendees regarding the impact of different approaches to IT transformations on their company balance sheet and P&L account.

4:00-4:45 p.m.

VMware Software Demonstration: Leveraging IT Financial Transparency to Drive the CIO’s Transformation Agenda
Blair DeSio, Senior Solutions Consultant

VMware
Achieving financial transparency is fundamental to IT transformation. Increased transparency can be a key catalyst that helps drive significant reallocation of IT investment away from low performing areas and into areas that support rapid business growth and expansion. This session will highlight:

• Best practices for achieving financial transparency

• VMware solution overview

• Real world customer examples

Nicus M-PWR Software Demonstration: IT Financial Management Solution Overview
Robert Mischianti, Vice President

Nicus Software, Inc.

Learn about Nicus M-PWR, an integrated set of solutions for IT Financial Management. Our solutions and capabilities include:
• IT Finance Automation
• IT Cost Transparency
• IT Chargeback, Showback, and Cost Allocation
• Bill of IT
• Budgeting and Forecasting
• IT Spend Management
• Service Costing and TCO Reporting
• Benchmarking
• IT Supply Chain Management (SCM)

5:00-7:00 p.m.

VMware - IT Business Management Reception

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.

Thursday, April 17

7:00-8:00 a.m.

Full Breakfast Buffet sponsored by HP Software,

a leader in Building ITFM into Performance Management

8:00-8:45 a.m.

ITFM Story Telling: The Right Message to the Right Audience for the Most Impact
Alan Payne, AVP, Technology Business Management
Navy Federal Credit Union
There are many reasons to do IT Financial Management and most revolve around telling a story. This session will describe practical lessons learned in identifying the stakeholders, determining the stories that need to be prepared, and explore visual communications that have brought about success in our journey.

9:00-9:45 a.m.

IT Financial Journey to Shared Services

William Conklin, Director, Enterprise IT Finance

AmerisourceBergen Corporation

At AmerisourceBergen, we had a very de-centralized IT model, with each of three business units running its own IT shop. A year and a half ago, our new CIO wanted to “tear down the walls” and converge the IT areas into one Enterprise IT organization. IT Finance was one of the first areas of IT to delve into the Shared Services model. There have been many challenges thus far, but we have been able to overcome most of them and turn them into many successes. This session will take you on our IT financial journey to shared services and cover:

• Demand Planning

• Budgeting and Financial Reporting

• Accounting Consolidation

• Shared Services Set-up

• Capital Request Process

• IT Finance Tools

10:00-10:45 a.m.

What Color is the Money for this Project?

Sandra Sears, Assistant Vice President

MassMutual Financial Group

One of the ongoing challenges for IT is accounting for the “costs” of a project or program. Direct expenses for items like hardware, software, and contracting or consulting are usually fairly straightforward to track. Accounting for the time internal staff spends on a program or project is more problematic, and, depending on how it is handled, can be labor intensive, frustrating, and lead to difficulties in appropriately assigning expenses to the appropriate cost centers, products, and so on. This session will outline several approaches that can be used to address these challenges and will playfully discuss the idea of using “colors” of money to help IT practitioners create more accurate budgets, forecasts, and actuals.

11:00-11:45 a.m.

Rate Structures for Chargebacks

Fabian Aragon, IT Business Operations Manager

Sandia National Laboratories

When starting up or changing a chargeback operation, it is essential to evaluate the various methods for charging so that customers can be provided with an equitable and easily understood rate structure. This session will go through various rate structures and when they may be most applicable. You will leave with new ideas on how to structure your IT chargebacks.

12:00-12:50 p.m.

Lunch Buffet sponsored by ComSci,

a leader in automated IT Financial Management Solutions

1:00-1:45 p.m.

Driving Business Value and IT Cost Transparency through Service Catalogs
Sharad Joshi, Vice President and Roxana Argintescu, Director

Depository Trust & Clearing Corporation

The business needs at DTCC that led it to create service catalogs as part of its IT Cost Transparency initiative, key objectives, and lessons learned are discussed in this session, as well as, the principal approach aligning business and technical services delivered key benefits, which include:
• Increased transparency of IT investments, costs, savings levers and cost predictability
• Better understanding by the business of IT value delivered
• Enhanced ability by the business to make decisions based on IT services and costs
• IT cost and service benchmarking

2:00-2:45 p.m.

Outsourced – Real Life Experiences

Todd Hall, Director

U.B.S. Investment Bank

In 2008 I had to move my team of 46 positions (including my own job) to India. This included all the layoffs onshore and all the hiring offshore. While completing this transition, we also had to install a new Telecom Expense Management system with the new team in India. I traveled to India five times and this session will discuss the lessons learned from this entire exercise.

3:00-3:45 p.m.

How to Successfully Explain IT Funding Requests to Your Legislature

Karlynn O’Shaughnessy, Senior Fiscal Analyst

State of North Carolina General Assembly

Legislatures are routinely approached with requests for funding for information technology products and services from a wide variety of interested parties. These include state agencies, other government entities, state-funded private organizations, and vendors. Based on the information made available to them, legislators make decisions regarding the use of very limited resources. Understanding what drives the legislative decision-making processes can sometimes be challenging. Many requesters are unsuccessful because they do not take the time to understand the process, or because the content and quality of their presentations do not match legislators’ expectations. During this session, we will discuss the factors that impact state legislatures’ IT funding decisions. We will walk through some examples of how to successfully convey information, as well as examine how requesters can sometimes inadvertently sabotage themselves and their organization.

4:00-4:45 p.m.

HP Software Demonstration: Five Secrets Every Business and IT Manager Should Know About Utilizing Financial Insights to Align IT with the Business

Richard Hawes, Sr. Manager and Mark Bradley, Sr. Product Manager

HP Software

Business managers increasingly need to interact with IT management – a foreign territory for many. But building a business perspective of IT is worthwhile; the quality of IT financial management can help differentiate your business. In this session, we will explore IT management value chains and how they deliver the capability and performance your business needs to win. Hear about the business processes that support the strategy to the portfolio value chain, how service costing can reveal how well it is running and, most importantly, how it can improve. You will leave this session a more effective manager who knows how to derive true value from ITFM.

4:00-4:45 p.m.

ComSci Software Demonstration: Software as a Service & Business Process as a Service Offering is Demonstrated Live Along with a Q&A Session with a Prominent Customer

Brian Stedman, Vice President, Product Management

ComSci

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, you 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 applications 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.

After a thorough review of the Business as Service solution components, you will gain insight into how risk is mitigated by having built in controls, the ability to produce actionable variance to actual reporting while maintaining numerous versions, and how to build service costs via various Budgeting and Planning Expense Management methodologies. This insight will help you implement best practices and solutions to optimize IT resources at your own organization.

Friday, April 18

7:00-8:00 a.m.

Full Breakfast Buffet

8:00-8:45 a.m.

A Fool with a Tool is Still a Fool (HE CANCELLED – NEED TO REPLACE HIM WITH GARY ECKERT)

Robert Kreher

Practice Lead, IT Management

HP Software EMEA

Very often IT organizations believe (or want to believe) that introducing ITFM can be done in “a matter of days” and just requires a magic tool. Our findings from working with numerous customers across the world show that introducing ITFM is all about data, process and people, and much less about technology. In this session we will take a look across the customers we have worked with to distill what we found as a workable approach to introducing ITFM – and highlight pitfalls to avoid.

9:00-9:45 a.m.

Chargebacks for Scientific Computing Resources

Bryan Sullivan, IT Business Professional

Sandia National Laboratories

Scientific Computing Resources such as supercomputing and engineering applications may be enough of a non-enterprise service to require an organization to chargeback for these services. Equitable and efficient chargeback can require an IT Financial Management professional to do some extensive analysis on charging models and purchasing models. This session is aimed for those IT Financial Management professionals that are looking for ways to further the success of their organizations management of Scientific Computing Resource costs.

10:00-10:45 a.m.

When the Economy Gets Tough, the Tough Get Measuring!

Lori Holmes, Vice President

Q/P Management Group, Inc.

Tough economic times provide a golden opportunity for measurement. This presentation will provide insight into how measurement can answer questions and support decision-making. We will discuss why measurement is necessary and the expected benefits. Included will be specific examples from various organizations and how they have used measurement to reduce costs.

IT Chargeback, Cost Transparency and

Expense Management Conference Agenda

Wednesday, April 16

7:00-8:00 a.m.

Conference Registration

and

Full Breakfast Buffet sponsored by Nicus Software,

a leader in IT Financial Management Solutions

8:00-8:45 a.m.

Cost Allocation for IT Services: Implementation Experiences

Peter Gayek, Senior IT Architect
IBM Global Technology Services
This session summarizes common approaches to IT cost allocation, from the perspective of the billing/chargeback solution implementer. Some allocation methods are more precise than others, but the cost of building and operating the technical solution to measure, allocate, and report on IT service usage in the most precise way may outweigh the business benefits achieved. We’ll review real-life examples of different IT billing and cost allocation methods from multiple IBM clients, and the measurement solution challenges that resulted from these business requirements. The presentation focuses on IT infrastructure services. Business scenarios discussed include:

• Chargeback purely within an enterprise

• Allocation of billed charges from traditional IT outsourcing service providers

• Allocation of billed charges from cloud IT infrastructure service providers

The presentation shows common patterns for IT service usage metrics and measurement implementation methods. We’ll discuss the trade-off between chargeback solution cost and the level of IT cost allocation, and discuss how IT outsourcing and cloud services affect the availability of chargeback data.

9:00-9:45 a.m.

Linking IT to Business Value – Forensic Economics

Michael Davis, Consultant

Resource Guidance, Inc.

There are many approaches available for determining the “value” of an IT project, but these exercises are usually part of a decision process. A general rule is that for any new implementation there should be an increase in revenue, decrease in cost, or some measured value (such as ROI). This is fine for new implementations, but what about after the implementation; does the IT processing have any value? Intuitively we know the computing envelope provides value to the business, but the real question is how much? The issue is how to measure something that appears to have no apparent means of measurement. In some cases, the something might be a necessary “evil” that ensures the viability of the business (such as a customer support group or an information web site). While there are no traditional means to perform these valuations, one can look to the legal environment for an answer – Forensic Economics. The legal environment has long required the ability to value something that at first glance has no apparent means in which to determine a value. In this session we will:

• Define Forensic Economics

• Review some of the techniques of Forensic Economics

• Define the link that IT has to business value

• Discuss how the business value of IT can be determined using Forensic Economic techniques

• Work through a simple example of an IT enabled process

10:00-10:45 a.m.

Service Costing Dos and Don’ts from the Consumer Perspective

Nancy Braun, CEO

Thavron Solutions

Once IT has published a service catalog with costs, service consumers will start adjusting behaviors. Too often a behavior change does not have the expected results and sets IT up for increased mistrust or missed bottom line goals for the business. A list of dos and don’ts will be reviewed for Service Design and Costing that set IT up to be heroes for the business, rather than increasing confusion. This will include specific cost modeling examples – both good and bad – as well as a look at how IT language impacts business expectations.

11:00-11:45 a.m.

Practical Guidance for Tackling IT Financial Management Business Problems

Terence Okus, Principal Consultant

EMC Consulting

This session will cover these categories of financial management methods for financial analysis: analysis, forecasting, profitability. The various methods include:

Sustainable Growth Analysis – The concept behind sustainable growth is that revenues must be balanced by growth in assets in order for the firm to be able to support the sales growth. This type of analysis is apropos for the IT Service Provider that is driven to achieve the highest rates of return on assets along with maintaining a sustainable strategy for growth.

Growth/Liquidity Analysis – This method takes a look at a company in terms of its liquidity and its investments in growth-producing assets. However, increased investments generally produce growth but they also reduce liquidity by using available cash and short-term assets. The trade-off between liquidity and investment has an effect on financial policy and the company’s overall strategy. This analysis will provide a clearer picture about liquidity and facilitate better financial management decision-making.

Financial Policy Analysis – This analysis addresses the problems many firms experience in integrating financial policy and corporate strategy. This four-step method will result in identifying the limiting assumptions of policies, explore alternatives, and help integrate financial and business planning.

Seven Laws of Forecasting – Avoiding false assumptions and an over reliance on quantitative results is required to achieving accurate financial forecasts. The use of the Seven Laws comes into play so that the IT Financial Manager can be prepared for sudden and hard to predict changes that occur within forecasts. The Seven Laws provide a means of recognizing that quantitative forecasts need to be taken with caution and gives specific guidelines for making a qualitative, judgment based evaluation of any forecast.

Profitability Matrix – Evaluating plans and financial projections of multiple business units (Shared Service Units for IT Service Providers) requires a useful method that allows IT Financial Managers to assess contributions to cash flow and value at a glance while comparing the growth and share strategies of the individual units. The Profitability Matrix incorporates information on market-share growth with emphasis on the impact each unit’s strategy will have on the financial value and performance of the company.

The formulas and procedures for each method reviewed will be made available to you through the included power point presentation

12:00-12:50 p.m.

Buffet Lunch

1:00-1:45 p.m.

Simple Allocation Chargeback Model: Why is It so Effective and Useful in Today’s Usage Based Environment?

Jeffrey Ebbrecht, Senior IT Specialist

IBM Corporation

In this session we will talk about Simple Allocation Chargeback Models and why they are still very effective in today’s environments. Many customers are looking at usage or consumption based models, but are those really necessary? What can you accomplish with a simple Allocation Model? Why do companies still use this model today even when they may use a Usage/Consumption-based Model for other areas? What are some of the challenges that you should be aware of when using a Simple Allocation Model.

2:00-2:45 p.m.

Delivering More with Less – Overview of IT Cost Reduction Techniques
Chalapathi Kotnana, Managing Principal

Kotnana Associates, LLC.
During these tough economic times, IT organizations are under immense pressure from business units and corporate executives to deliver more with less and demonstrate the value from IT investments. They struggle to optimize IT cost structures while under pressure to deliver more with less. IT executives need to be astute about reducing costs while supporting business units to increase top-line growth and reduce operating costs. In order to efficiently and effectively capitalize on IT investments, IT executives could leverage several cost-reduction techniques with well-balanced service delivery and quality. This presentation will provide a brief overview of several cost reduction techniques by understanding drivers of the supply and demand sides of IT. It raises awareness of several cost reduction techniques that support institutionalizing IT cost efficiency and maximizing the business value of IT.

3:00-3:45 p.m.

Creating Better Relationships through Effective Financial Transparency

Anurag Bahal, Manager

Ernst and Young

Senior management at several organizations desire to orchestrate an effective relation between the IT service providers and business. One of the foundational blocks in an effective relationship between service providers and customers is financial transparency around the services. However, accomplishing financial transparency is not easy and most organizations experience hurdles in their journey towards a glass box view of IT financials. Many of them find themselves locked up in a tool set that is automating a sub optimal process. This session will cover in detail the most critical pain areas around the financial management of IT services and the solution and the controls that should be implemented for mitigating those pain areas. Guidance on organizing the financial management and expense transparency universe will be provided, which includes: processes, people and organization change, operating model, roles and responsibilities, key controls, measures of success, and key tools. Hear about:

• IT services financial management challenges

• Service based framework to improve financial transparency

• Key guiding principles for effective relationship between service providers and customers

• Operational risk and governance for financial transparency

• Critical success factors for financial transparency

• Case Studies from personal experiences

4:00-4:45 p.m.

VMware Software Demonstration: Leveraging IT Financial Transparency to Drive the CIO’s Transformation Agenda
Blair DeSio, Senior Solutions Consultant

VMware
See description on page XXXXX

Nicus M-PWR Software Demonstration: IT Financial Management Solution Overview
Robert Mischianti, Vice President

Nicus Software, Inc.

See description on page XXXXX

5:00-7:00 p.m.

VMware – IT Business Management Reception

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.

Thursday, April 17

7:00-8:00 a.m.

Full Breakfast Buffet sponsored by HP Software,

a leader in Building ITFM into Performance Management

8:00-8:45 a.m.

The Trials and Tribulations from a Recent Global Chargeback Implementation

Larry Foster, Vice President

PINNACLE

This presentation will convey the lessons learned from a recent global chargeback implementation that was completed at a large multinational financial institution. You will receive critical information to help your organization with more effective and efficient planning, conducting due diligence, working with regional supply partners, and maximizing the impact from a progressive global rollout to create timely ROI.

9:00-9:45 a.m.

The IT Financial Management Journey

Peter Hidalgo, Senior Manager

Ernst & Young LLP

This session will present our point of view on how an IT organization should undertake the path to effective IT financial management, which we refer to as the ITFM journey, in order to achieve transparency, cost efficiency, and customer satisfaction.

The journey will cover an overview of the seven key steps that should be taken, which are:

• Performing a current state assessment to document the IT spend baseline and to determine the maturity of the IT financial management processes using the Innovation Value Institute Capability Maturity Framework (IVI-CMF)

• IT service definition

• IT service costing

• Metrics and service usage reporting

• Chargeback model selection

• IT billing

• How to automate these processes

You will gain a deeper understanding of what is needed to derive the benefits of an effective IT Financial Management program through a holistic view of this process, based on actual client results and insights realized over the very recent past.

10:00-10:45 a.m.

IT Cost Modeling Methodologies

Robert Mischianti, Vice President

Nicus Software, Inc.

This session is a practitioner’s guide to IT cost modeling. Topics will include common methodologies and practices currently being used in the industry, to include:

• Defining the Cost Model

• Managing Direct and Indirect Costs

• Cross Allocation of Indirect Costs

• Cycling the Model

• Managing Simplicity vs. Complexity

• Enabling “What-If” Scenarios

• Fixed vs. Variable Cost Analysis

• Challenges in Socializing the Model

11:00-11:45 a.m.

Key Tactics for IT Cost Transparency

Prashanth Prabhakara, Principal Consultant

Infosys Limited

In the current period of “Value Driven Investments,” CIOs need to make accurate decisions, and justify spends to ride the wave successfully. To accomplish this, the utmost importance to senior management is to have transparency and understand the dependencies between various IT Services Management processes/functions. What are the services provided by IT to business? How do you demonstrate the value of IT? Where is the money being spent within IT? Have the cost structures and governance mechanisms evolved to new emerging models such as Pay-as-you-go model and Cloud Computing? For technology and business transformation, the key enabler is “transparency”. IT transparency has multiple dimensions. What those are and what it takes to achieve them will be the focus of this presentation. The intricate relationship between IT Asset Management, Service Request Fulfillment and Financial Management will be analyzed. Artifacts, examples and lessons learned from working on similar real life global projects will be shared. Emphasis will be given to the IT Financial Management process and how IT cost transparency is a key enabler to help the organization to be ready to successfully undertake the transformation that is rapidly shaping the technology world. The key take away from this presentation will be in helping IT executives and senior managers to understand:

• The importance of a holistic strategy

• The common pitfalls faced while trying to achieve transparency

• To understand the principles and underlying benefits of doing it right

In metrics terminology, the aim of this presentation is to help towards achieving the two important metrics of “Right First Time” and “Reduced Cycle Time” in implementing ITFM initiatives to enhance IT transparency.

12:00-12:50 p.m.

Lunch Buffet sponsored by ComSci,

a leader in automated IT Financial Management Solutions

1:00-1:45 p.m.

Drive IT Success from an IT Financial and Operational View: the Secret to Successful IT Service Controls
Nan Braun, CEO/Founder, Thavron Solutions and Mark Bradley, Sr. Product Manager, HP Software
The modern IT Executive has taken an air traffic control seat for the intense demand for IT Services Management in the enterprise. To ensure a smooth delivery that meets business objectives, a dashboard is the recommended approach to combine financial and operation data into metrics that drive IT for Business Value. Learn about the use of balanced scorecards to support successful decision-making and expose critical control metrics.

2:00-2:45 p.m.

How the Service Taxonomy Enables Service Management

Paul Sweeney, Sr. Principal Business Consultant

EMC Corporation

This session is a discussion of the key elements and attributes of the Service Taxonomy, and how it enables service costing and service management. This session will explore examples from our IT’s recent service management evolution, and will explain how the service taxonomy has become a foundational component for enabling the cost model and service offerings.

3:00-3:45 p.m.

Wow...Now I Understand What I Am Charging My Customers
Kelly Williams, Managing Partner

CEAK, LLC
All too often we get frustrated when an IT Financial Management effort is undertaken. One reason could be we do not want customers to see what we are doing with their dollars as a technology group. Another could be we do not want to create additional, complex work for ourselves. This session is about putting all of the pieces together so we can better understand the puzzle and manage things better from our perspective as a Technology Group and from the customers perspective.

4:00-4:45 p.m.

HP Software Demonstration: Five Secrets Every Business and IT Manager Should Know About Utilizing Financial Insights to Align IT with the Business

Richard Hawes, Sr. Manager and Mark Bradley, Sr. Product Manager

HP Software

See description on page XXXXX

4:00-4:45 p.m.

ComSci Software Demonstration: Software as a Service & Business Process as a Service Offering is Demonstrated Live along with a Question & Answer Session with a Prominent Customer

Brian Stedman, Vice President, Product Management

ComSci

See description on page XXXXX

Friday, April 18

7:00-8:00 a.m.

Full Breakfast Buffet

8:00-8:45 a.m.

Technology Business Enablement

Maria Potter, Director, CIO Advisory

KPMG

Technology Business Enablement (TBE) enables the CIO to become a Trusted Business Partner driving business processes to enable growth. TBE operates upon five CIO Imperatives and integrates key capabilities that to date have been managed independently, minimizing effectiveness. ITFM is a key capability of the TBE model but realizes it’s true value when integrated with all the capabilities of TBE. This session will take you through the TBE model focusing on the integration of ITFM with other key TBE capabilities.

9:00-9:45 a.m.

Exchange Traded Compute: What it Means for Your Organization

John Cowan, CEO & Co-Founder

6fusion
Both the Chicago Mercantile Exchange (CME) and the Deutsche Borse have recently announced plans to build exchanges for infrastructure-as-a-service (IaaS). This is representative of far more that just a next phase of the cloud; it’s about a new application of financial and economic principles and methodologies to IT. Think about being able to hedge risk on IT infrastructure in the same way airlines hedge jet fuel for competitive advantage. This combined with rapid technology advancements is driving profound changes at micro and macro levels that are accelerating us down the path toward true IT infrastructure utility. This session will be a thought-provoking, interactive discussion on the current status of the CME’s IaaS exchange, the technical foundations involved, and the business implications that will impact your organization.

10:00-10:45 a.m.

Developing an Equitable Chargeback Model for IT
Fuad Joe Khoury, Managing Consultant

Maven & Company
Chargeback remain a controversial subject in IT financial management due to issues relating to cost allocation equity. An equitable chargeback model fosters a service-oriented culture, increases cost awareness, promotes client ownership of IT-related costs, facilitates communications between the IT organization and its clients, in addition to introducing market forces to balance the supply and demand for IT services. The benefits are undoubtedly compelling. However, for chargeback to be equitable, it needs to be an on-going culmination of catalysts between cost and price structures predicated on consumable and understandable services. We shall discuss the key elements that lead to the implementation of an equitable chargeback model for the IT organization.

IT Financial Management Best Practices

Conference Agenda

Wednesday, April 16

7:00-8:00 a.m.

Conference Registration

and

Full Breakfast Buffet sponsored by Nicus Software,

a leader in IT Financial Management Solutions

8:00-8:45 a.m.

Core Competency for a Successful IT Finance Controller

Cathleen Nilson, IT Financial Manager

EA
Do you know many successful corporate finance managers struggle to survive when they move into an IT Finance Controller role? Why? Because IT Finance Controllers start with IT, not traditional corporate accounting, income statements and balance sheets. This presentation will outline core competencies that differentiate a highly effective IT Finance Controller from a mediocre one. This presentation will also highlight skill sets and experiences that enable an IT Finance Controller to transform from good to great!

9:00-9:45 a.m.

Open Discussion of Chargeback Experiences and Best Practices

Charles Johnson, President & CEO

CNJohnson & Associates, Inc.

This session allows you to share your experiences and find out what your peers are doing in the areas of chargeback and IT cost management. We plan to have a lively interaction, whether you are new to chargeback or a veteran yourself. Discuss what you hope to achieve through chargeback, cost management and how you plan to accomplish them. Bring your questions, challenges, thoughts, what has worked, and what needs improvement. Don’t be bashful. Let’s have an extended, open discussion and some fun.

10:00-10:45 a.m.

Optimizing Cost in a Cloud Environment (HE IS NO LONGER AT HP. NEED TO REPLACE HIM)

Kobi Katrzir, Product Line Manager

HP Software

This session will show how to identify the most relevant portfolio elements that should be migrated to the cloud and how to migrate them in the most economical way. In addition we will discuss best practices that can help show business value and optimization opportunities of portfolio elements delivered in a hybrid environment.

11:00-11:45 a.m.

How to Gain a Holistic View of IT Products and Services and Run IT More Like a Business

Brian Stedman, Vice President

ComSci

In this highly interactive session, we will address the foundation of the chargeback processes made easy. We will share a real-world case study to demystify how IT can produce a detailed view of IT products and services to their business in order to enable them to track spend and manage IT costs as well as increase technology value to internal clients. You will also gain insight into how to choose the “right” data and validate the data, as well as run a repeatable, reliable process to normalize, synthesize and integrate the data into a usable and actionable set of information. Focus on the data is needed to support a successful chargeback process. We will also discuss what is the right information and how much information is the right amount as well as what are the appropriate decisions regarding imperfect data and what are the best methods to present the imperfect data. We will also review best practices for establishing financial transparency, communication, and the cost of creating a Bill of IT – the actual quality and value of services consumed. Through a thorough investigation of these components, you will be better able to deploy best practices that lead to success.

12:00-12:50 p.m.

Buffet Lunch

1:00-1:45 p.m.

How To Get More Out Of Your IT Service Suppliers

Jon Maxim, President and Bill Kern, Senior Consultant

Maxelerate Systems Ltd.

It has become clear that IT service agreements are not fulfilling their intended purpose. They are preventing organizations from getting what they contracted for. Ironically in many instances they are preventing the supplier from delivering what it intended to deliver and what you expected. It also holds the key to why the cost of services invariably exceed what you budgeted. Fortunately, recent developments in IT procurement and IT vendor management have introduced new practices to address these issues. This presentation will introduce you to these new techniques so that you can see that these problems have solutions and are not inevitable. This will make it much more likely that your IT projects will be “On Spec, On Budget and On Time”.

2:00-2:45 p.m.

Best Practices: Why Catalog Initiatives Fail (and How to Do It Right)
N. Dean Meyer, President

NDMA, Inc.

Many IT organizations are developing catalogs of their products and services, and for good reasons. This session will briefly remind you of the benefits of a catalog. Unfortunately, too many IT organizations have spent more than a year attempting to develop a catalog, only to find the results disappointing. Their catalog items mix true products and services with tasks, processes, high-level product categories, and customers’ motives for buying. They’re not consistently things that customers choose to buy. And it may not be clear which groups within the IT organization are accountable for product management and delivery of each. This session will explore the reasons why catalog initiatives go wrong, and suggest a pragmatic and effective process for developing a useful catalog quickly. This session will cover:

• Common mistakes

• Step-by-step processes

• Examples of good catalog items

3:00-3:45 p.m.

Recognition of Intangible Assets (Software) and Cost Recovery for Governmental IT Agencies

Kenneth Hoffman, Principal

Kenneth F. Hoffman, Inc.

The Governmental Accounting Standards Board Statement Nos. 34 and 51 establish the rules for the recognition and reporting of the costs of intangible assets, such as computer software, patents and trademarks. When planning cost recovery and chargeback, government IT officials need to understand how the costs of activities involved in developing and installing software should be grouped. While some costs should be capitalized, others should instead be expensed – and this has important ramifications for chargeback to Federal grants and cooperative agreements. This session focuses on a best practice example of properly recognizing the costs of internally generated computer software, and applies this recognition to cost recovery and chargeback.

4:00-4:45 p.m.

VMware Software Demonstration: Leveraging IT Financial Transparency to Drive the CIO’s Transformation Agenda
Blair DeSio, Senior Solutions Consultant

VMware
See description on page XXXXX

4:00-4:45 p.m.

Nicus M-PWR Software Demonstration: IT Financial Management Solution Overview
Robert Mischianti, Vice President

Nicus Software, Inc.

See description on page XXXXX

5:00-7:00 p.m.

VMware - IT Business Management Reception

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.

Thursday, April 17

7:00-8:00 a.m.

Full Breakfast Buffet sponsored by HP Software,

a leader in Building ITFM into Performance Management

8:00-8:45 a.m.

The Cost Model and How It Drives Transparency

Robert Cook Jr., Director, IT Business Management and Sujoy Mukherjee, Business Solutions Architect

Depository Trust & Clearing Corporation
This session will focus mainly on the cost model. We will discuss methodologies (flow left to right – expenses to allocations), the importance of direct usage based consumption (value of reducing peanut butter spread of expenses), a well-structured Bill of IT, and role based dashboards.

9:00-9:45 a.m.

IT Financial Management – More Than Just Budgeting
Suzon Crowell, Senior ITBM Strategist
VMware
It seems a major understatement to say that ITFM only addresses budgeting, accounting and charging. If business is about making money, then how could managing the business of IT be so simplistic? In this session, we will present a more holistic and encompassing view of the processes involved in managing the finances of a service-focused IT organization, who's accountable, how do you measure process success, and how often do you perform the process? This is not just for financial managers, but service owners, resource managers and demand managers. IT Finance is the communication vehicle and in the language of business, so having a complete ITFM practice, or road to one, is important to the whole organization. We will discuss:

• Service-based IT

• Road to maturity (don’t have to have them all right now)

• Accountability, cadence (specific details for each process)

• ITIL’s just a framework (no meat to it)

• ITFM is how IT communicates to customers

10:00-10:45 a.m.

Overview of Cloud Services Based Costing and Showback and Recovery

Khalid Hakim, Operations Architect

VMware
This session will focus on the basic concepts of cloud and Software Defined Datacenter services-based costing and how to enable IT Financial Managers, IT Service Managers and their service management teams to build a standard service-based cost model and help them understand the true costs behind service provisioning and delivery. We will also address some of the recommended practices for cost recovery and the various applications and scenarios in real life along with cost allocation to business units and the Bill of IT.

11:00-11:45 a.m.

Using Metrics to Better Discover, Manage and Charge for Your Cloud Services

Robert Stroud, Vice President, Strategy & Innovation

CA Technologies

IT Professionals often think of metrics as a means of measuring system performance, often without a relationship to how those metrics are used to run the business. In this presentation, you will learn how to understand the business connection to IT metrics, how to identify what metrics are meaningful and appropriate, and the use of a suitable proxy for Service Management. This includes a review of how other technology industries use proxies for service measurement, management, capacity planning, and finance.

12:00-12:50 p.m.

Lunch Buffet sponsored by ComSci,

a leader in automated IT Financial Management Solutions

1:00-1:45 p.m.

Best Practices: Service Costing, Step-by-Step
N. Dean Meyer, President

NDMA, Inc.

Cost models are used to plan budgets and rates (in a catalog). They associate all costs, including indirect, with your products and services. Cost modeling is simple – if you don’t care about accuracy! But a bad cost model can mislead customer purchase decisions, distort budgets (up and down), and potentially lead to inappropriate cost cutting and outsourcing. Meanwhile, doing it right isn't all that difficult. In fact, in many ways, it’s easier! It just takes a step-by-step method. This session will explain the difference between early activity based cost (ABC) models and modern second-generation cost models, and list the benefits of a second-generation model. Then, it will walk you through the steps, with examples. You’ll leave with an understanding of what it takes to lead a budgeting and rate-setting process founded on an accurate cost model. This session will cover:

• What if you get it wrong?

• Simple ABC cost models, versus second-generation cost models

• The benefits of a second-generation cost model

• Steps in the process

• Really, it’s easier to do it right!

2:00-2:45 p.m.

Data Center Consolidations, Outsourcing of Data Centers, and Large Software Projects: What the Federal Government Requires of State IT Agencies

Kenneth Hoffman, Principal

Kenneth F. Hoffman, Inc.

During Federal reviews of large information technology projects and reorganizations undertaken by state governments, increasing attention is being paid to compliance with cost allocation and rate-setting regulations. Enhanced investigation is focused on three key IT initiatives: consolidations and reorganizations of state data centers, contracted outsourcing of data center activities, and billing practices related to recovery of costs of large software projects such as ERP and human resources management systems. This session centers on what the best practices are for state and local government IT officials to avoid costly errors when using chargeback methodologies for these IT initiatives.

3:00-3:45 p.m.

Obtaining Better IT Leases

Jon Maxim, President and Bill Kern, Senior Consultant

Maxelerate Systems Ltd.

Technology leasing is a multibillion-dollar industry. Leasing often provides an alternative method to acquire the latest technology without a large capital outlay. It is also unfortunately, often misunderstood by the customer (lessee), often because the lessor’s name is very similar to the manufacturer, i.e. Dell Financial Services, etc. Leasing is a pure financial transaction. In a best practice environment it is a separate transaction from the selection, acceptance and maintenance of equipment or software. In many organizations the finance department is only involved to the extent of reviewing the quoted lease rates and determining if the item should be leased or purchased. They may not be aware of what the actual total cost of the lease truly was. Often this is because the client accepts the lessor’s standard lease agreement, which leads to unexpected expense during the lease and in particular at the end of the lease term. This additional expense, if known at the start, may have led to a purchase decision rather than lease. This presentation is designed to inform a customer of current best practices in technology leasing to strengthen a customer’s position and avoid unexpected cost. It will address the elements of a well-constructed lease agreement, with emphasis on the following provisions:

• Lease does not begin and rent not paid, until acceptance of hardware/software

• Fixed rent structure

• Equipment trade-ups and upgrades

• Flexible renewal options

• Equitable equipment return provisions

• Realistic lease termination provisions

4:00-4:45 p.m.

HP Software Demonstration: Five Secrets Every Business and IT Manager Should Know About Utilizing Financial Insights to Align IT with the Business

Richard Hawes, Sr. Manager and Mark Bradley, Sr. Product Manager

HP Software

See description on page XXXXX

4:00-4:45 p.m.

ComSci Software Demonstration: Software as a Service & Business Process as a Service Offering is Demonstrated Live along with a Question & Answer Session with a Prominent Customer

Brian Stedman, Vice President, Product Management

ComSci

See description on page XXXXX

Friday, April 18

7:00-8:00 a.m.

Full Breakfast Buffet

8:00-8:45 a.m.

IT Cost Transparency in Non-Production Environment Services – New Age Chargeback Models
Rohit Gulati, Lead Consultant

Infosys Limited
Increasing competition and pressure to “deliver on time” has forced organizations to take a look into how their development and test environments are managed. It is estimated that nearly 40% of the effort during the software development life-cycle is wasted due to environment related issues. Organizations are increasingly focusing on new ways to build and enhance Non Production Environment Management capabilities. With significant investments going into this space, organizations feel the need to have greater IT Cost Transparency within non-production environments expenditure. While achieving IT cost transparency helps IT to model and track the total cost of delivery, IT Chargeback models provide a mechanism to assigning a price to each service and billing departments for the services they consume. Hence, a good chargeback model helps provide a value to service and hence help achieve greater cost transparency. The IT Chargeback models have been in place for a very long time since mainframe era when the IT capital cost were rising and there was a need to charge business/users for its use. The traditional and most widely used chargeback model is to divide the IT costs and its budget amongst the business services it supports. The emergence of Cloud and DevOps has challenged the IT landscape and the way the services are delivered. This evolution of Environment as a Service model has forced IT Managers to relook at the traditional chargeback models and evolve into consumption based models. The objective of this presentation will be to provide recommendations to IT organizations on how to manage their IT cost in non-production environment based on the NPE Chargeback Model and ensure greater cost transparency, predictability and efficiency. The NPE Chargeback Model leverages IT best practices, automation capabilities and real-life implementation experiences, which will help IT organizations to overcome their existing challenges and allow them to scale up or down IT costs based on demand and usage.

9:00-9:45 a.m.

Best Practices for Modeling Platform Delivery Methods
Christopher Dedera, Manager
KPMG
Today’s CIO needs to focus on building an effective strategy to deal with the evolving platform delivery methods, including cloud, virtual and physical. This session will explore how leading companies are evaluating their options and will discuss questions such as:
• How are business cases incorporating real financial and risk models that allow them the flexibility to engage the right suppliers for new capacity?
• How does a good fact-based plan help the CIO keep his share of the wallet when burst capacity can be bought on the open market?
• What role does the Financial Analyst, Architect and Supplier Manager play in advising and facilitating demand and capacity management decisions?
• How does the cost of unused capacity factor into the strategy and decision process?

10:00-10:45 a.m.

Developing and Maturing your IT Financial Management Practice
Anthony Pantaleo, IT Strategist
VMware
How does IT Financial Management maturity impact an organization? The ability to provide analysis and reporting based on the Economics of IT rather than on a Transactional basis provides enhanced benefits to the IT Leadership team. It also elevates the IT Finance team to a collaborative organization rather than a siloed organization. In this session we will look across the key components of an IT Financial Management Practice (People, Process, Data, Technology) and discuss the value associated with advancements in maturity.

Government IT Financial Management

Conference Agenda

Wednesday, April 16

7:00-8:00 a.m.

Conference Registration

and

Full Breakfast Buffet sponsored by Nicus Software,

a leader in IT Financial Management Solutions

8:00-8:45 a.m.

Financial Reporting Tools

Robert Amdahl, IT Business Professionals

and Danielle DiGregorio, IT Business Professionals

Sandia National Laboratories

As the financial management profession continues to require better, quicker data analysis, IT financial management professionals must find innovative solutions to allow for greater efficiencies. This presentation will go through various techniques to spark ideas on how others use tools such as Microsoft Power Pivot, Microsoft SharePoint forms, and financial forecasting methods. You will leave this session with ideas on potentially new ways to handle your IT financial management efficiency needs.

9:00-9:45 a.m.

Challenges of Treating IT as a Business Within a Business

Brenda Berlin, CFO and Debbie Thibault, Director of Service Finance

State of Colorado

Those in the business and government sectors face the same political and budget challenges when you treat IT as a business within a business and offer IT as a service or do IT consolidations. This session describes our experiences with treating IT like a business by identifying expenditures by IT service and allocating them to organizational units using service metrics. Our experiences with merging our various decentralized IT departments into one Office of Information Technology are also discussed.

10:00-10:45 a.m.

Effective Financial Management – What the People Say!

Robert Stroud, Vice President, Strategy & Innovation

CA Technologies

One of the dreaded words in IT is “chargeback.” Many of you live with that every day, but in an era of cloud and outsourcing, can you escape it? Recently we undertook an independent industry survey to understand how effective financial management works within enterprises and developed a model to determine the value of financial management according to their business, size and segment amongst other metrics. The speaker will share with you the results of the survey and discuss how they may impact you moving forward with your investments in IT enabled business value.

11:00-11:45 a.m.

An IT Financial Management Framework for the Real World
Robert Mischianti, Vice President

Nicus Software, Inc.
Even as the IT Financial Management market matures and standard practices begin to emerge, large scale enterprises have been implementing, executing, learning and evolving as they go. This presentation will review several successful frameworks used by these organizations for financial planning, budgeting, forecasting, benchmarking, service costing, cost allocation, chargeback and more.

12:00-12:50 p.m.

Buffet Lunch

1:00-1:45 p.m.

Practical Lessons from the Trenches: Where the Land Mines Are
Alan Payne
AVP, Technology Business Management
Navy Federal Credit Union
This presentation is a case study about my two and a half year journey in implementing ITFM from scratch by highlighting successes and identifying the land mines that nearly derailed our efforts. Topics will include:
• Clearly defining what the end goal is
• Laying out the roadmap
• No amount of executive support is enough executive support
• Discussions within IT and with the business
• The battle of running IT as a business within a business
• What’s in a tool
• Our next steps
Communication pieces, artwork, and other items that were valuable as we went on this journey will be shown too.

2:00-2:45 p.m.

IT Chargeback, Cost Allocation & Unit Costing

Tony Powell, Executive Director and Kirk Zerkle, Cost Allocation/Recovery Manager
Southwood Shared Resource Center
SSRC has developed a service costing process that leverages a double step down allocation methodology to accurately and effectively price IT services. This standardized methodology provides a trace-back capability to dissect cost components of a service and trace-forward capability to analyze the impact of new or altered budget line items. The process is also compliant with the OMB Circular A-87. This session will review the benefits and structure of this process and include a deep dive into the calculations.

3:00-3:45 p.m.

Recognition of Intangible Assets (Software) and Cost Recovery for Governmental IT Agencies

Kenneth Hoffman, Principal

Kenneth F. Hoffman, Inc.

The Governmental Accounting Standards Board Statement Nos. 34 and 51 establish the rules for the recognition and reporting of the costs of intangible assets, such as computer software, patents and trademarks. When planning cost recovery and chargeback, government IT officials need to understand how the costs of activities involved in developing and installing software should be grouped. While some costs should be capitalized, others should instead be expensed – and this has important ramifications for chargeback to Federal grants and cooperative agreements. This session focuses on a best practice example of properly recognizing the costs of internally generated computer software, and applies this recognition to cost recovery and chargeback.

4:00-4:45 p.m.

VMware Software Demonstration: Leveraging IT Financial Transparency to Drive the CIO’s Transformation Agenda
Blair DeSio, Senior Solutions Consultant

VMware
See description on page XXXXX

4:00-4:45 p.m.

Nicus M-PWR Software Demonstration: IT Financial Management Solution Overview
Robert Mischianti, Vice President

Nicus Software, Inc.

See description on page XXXXX

5:00-7:00 p.m.

VMware - IT Business Management Reception

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.

Thursday, April 17

7:00-8:00 a.m.

Full Breakfast Buffet sponsored by HP Software,

a leader in Building ITFM into Performance Management

8:00-8:45 a.m.

ITFM Story Telling: The Right Message to the Right Audience for the Most Impact
Alan Payne, AVP, Technology Business Management
Navy Federal Credit Union
There are many reasons to do IT Financial Management and most revolve around telling a story. This session will describe practical lessons learned in identifying the stake holders, determining the stories that need to be prepared, and explore visual communications that have brought about success in our journey.

9:00-9:45 a.m.

The IT Financial Management Journey

Peter Hidalgo, Senior Manager

Ernst & Young LLP

This session will present our point of view on how an IT organization should undertake the path to effective IT financial management, which we refer to as the ITFM journey, in order to achieve transparency, cost efficiency, and customer satisfaction.

The journey will cover an overview of the seven key steps that should be taken, which are:

• Performing a current state assessment to document the IT spend baseline and to determine the maturity of the IT financial management processes using the Innovation Value Institute Capability Maturity Framework (IVI-CMF)

• IT service definition

• IT service costing

• Metrics and service usage reporting

• Chargeback model selection

• IT billing

• How to automate these processes

You will gain a deeper understanding of what is needed to derive the benefits of an effective IT Financial Management program through a holistic view of this process, based on actual client results and insights realized over the very recent past.

10:00-10:45 a.m.

IT Cost Modeling Methodologies

Robert Mischianti, Vice President

Nicus Software, Inc.

This session is a practitioner’s guide to IT cost modeling. Topics will include common methodologies and practices currently being used in the industry, to include:

• Defining the Cost Model

• Managing Direct and Indirect Costs

• Cross Allocation of Indirect Costs

• Cycling the Model

• Managing Simplicity vs. Complexity

• Enabling “What-If” Scenarios

• Fixed vs. Variable Cost Analysis

• Challenges in Socializing the Model

11:00-11:45 a.m.

Rate Structures for Chargebacks

Fabian Aragon, IT Business Operations Manager

Sandia National Laboratories

When starting up or changing a chargeback operation, it is essential to evaluate the various methods for charging so that customers can be provided with an equitable and easily understood rate structure. This session will go through various rate structures and when they may be most applicable. You will leave with new ideas on how to structure your IT chargebacks.

12:00-12:50 p.m.

Lunch Buffet sponsored by ComSci,

a leader in automated IT Financial Management Solutions

1:00-1:45 p.m.

Best Practices: Service Costing, Step by Step
N. Dean Meyer, President

NDMA, Inc.

Cost models are used to plan budgets and rates (in a catalog). They associate all costs, including indirect, with your products and services. Cost modeling is simple – if you don’t care about accuracy! But a bad cost model can mislead customer purchase decisions, distort budgets (up and down), and potentially lead to inappropriate cost cutting and outsourcing. Meanwhile, doing it right isn't all that difficult. In fact, in many ways, it’s easier! It just takes a step-by-step method. This session will explain the difference between early activity based cost (ABC) models and modern second-generation cost models, and list the benefits of a second-generation model. Then, it will walk you through the steps, with examples. You’ll leave with an understanding of what it takes to lead a budgeting and rate-setting process founded on an accurate cost model. This session will cover:

• What if you get it wrong?

• Simple ABC cost models, versus second-generation cost models

• The benefits of a second-generation cost model

• Steps in the process

• Really, it’s easier to do it right!

2:00-2:45 p.m.

Data Center Consolidations, Outsourcing of Data Centers, and Large Software Projects: What the Federal Government Requires of State IT Agencies

Kenneth Hoffman, Principal

Kenneth F. Hoffman, Inc.

During Federal reviews of large information technology projects and reorganizations undertaken by state governments, increasing attention is being paid to compliance with cost allocation and rate-setting regulations. Enhanced investigation is focused on three key IT initiatives: consolidations and reorganizations of state data centers, contracted outsourcing of data center activities, and billing practices related to recovery of costs of large software projects such as ERP and human resources management systems. This session centers on what the best practices are for state and local government IT officials to avoid costly errors when using chargeback methodologies for these IT initiatives.

3:00-3:45 p.m.

How to Successfully Explain IT Funding Requests to Your Legislature

Karlynn O’Shaughnessy, Senior Fiscal Analyst

State of North Carolina General Assembly

Legislatures are routinely approached with requests for funding for information technology products and services from a wide variety of interested parties. These include state agencies, other government entities, state-funded private organizations, and vendors. Based on the information made available to them, legislators make decisions regarding the use of very limited resources. Understanding what drives the legislative decision-making processes can sometimes be challenging. Many requesters are unsuccessful because they do not take the time to understand the process, or because the content and quality of their presentations do not match legislators’ expectations. During this session, we will discuss the factors that impact state legislatures’ IT funding decisions. We will walk through some examples of how to successfully convey information, as well as examine how requesters can sometimes inadvertently sabotage themselves and their organization.

4:00-4:45 p.m.

HP Software Demonstration: Five Secrets Every Business and IT Manager Should Know About Utilizing Financial Insights to Align IT with the Business

Richard Hawes, Sr. Manager and Mark Bradley, Sr. Product Manager

HP Software

See description on page XXXXX

4:00-4:45 p.m.

ComSci Software Demonstration: Software as a Service & Business Process as a Service Offering is Demonstrated Live along with a Question & Answer Session with a Prominent Customer

Brian Stedman, Vice President, Product Management

ComSci

See description on page XXXXX

Friday, April 18

7:00-8:00 a.m.

Full Breakfast Buffet

8:00-8:45 a.m.

A Fool with a Tool is Still a Fool

Robert Kreher

Practice Lead, IT Management

HP Software EMEA

Very often IT organizations believe (or want to believe) that introducing ITFM can be done in “a matter of days” and just requires a magic tool. Our findings from working with numerous customers across the world show that introducing ITFM is all about data, process and people, and much less about technology. In this session we will take a look across the customers we have worked with to distill what we found as a workable approach to introducing ITFM – and highlight pitfalls to avoid.

9:00-9:45 a.m.

Chargebacks for Scientific Computing Resources

Bryan Sullivan, IT Business Professional

Sandia National Laboratories

Scientific Computing Resources such as supercomputing and engineering applications may be enough of a non-enterprise service to require an organization to chargeback for these services. Equitable and efficient chargeback can require an IT Financial Management professional to do some extensive analysis on charging models and purchasing models. This session is aimed for those IT Financial Management professionals that are looking for ways to further the success of their organizations management of Scientific Computing Resource costs.

10:00-10:45 a.m.

When the Economy Gets Tough, the Tough Get Measuring!

Lori Holmes, Vice President

Q/P Management Group, Inc.

Tough economic times provide a golden opportunity for measurement. This presentation will provide insight into how measurement can answer questions and support decision-making. We will discuss why measurement is necessary and the expected benefits. Included will be specific examples from various organizations and how they have used measurement to reduce costs.

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Calendar

6/26/2017 » 6/30/2017
2017 Financial World of Information Technology, Austin, TX

8/7/2017 » 8/11/2017
2017 World of IT Financial Management, New Orleans, LA

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