Fundamentals to know before building your first service cost model
Every ITFM practice’s maturity and success depends on an effective service cost model. The reason is simple: without a way to quantify IT services, it’s impossible to optimize costs, deliver insight, and “run IT as a business.” Cost modeling lets you do all those things and more.
If you’re ready to explore everything a cost model can offer your organization – and how you should go about building one for the first time – this eBook will lead the way.
The most trusted tool in any finance professional’s toolkit is Excel. IT Finance practitioners have been managing IT financials in spreadsheets for years – and many still do so today. It’s flexible, familiar, and works well for handling small to medium amounts of data. However, as businesses grow, so does IT. And as IT spend grows, so do the complexities of budgeting, forecasting, service costing, and understanding, managing, and optimizing spend.
Eventually, spreadsheets simply can’t keep up.
In this eBook, you'll learn ways to check your ITFM vital signs, recognize common symptoms of maturing beyond spreadsheets, and how to diagnose and treat with the right ITFM tool.Download now
IT organizations at high-performing companies are backed by world-class IT budgeting and forecasting processes. The financial teams behind these processes achieve tremendous budgeting and forecasting performance (examples include forecast accuracy within 3% variance, monthly close cycles within 2 days, monthly forecasting beyond 2 rolling years, etc.).
If you're striving for "best-in-class", beware an often overlooked obstacle to success: your corporate planning tool.
A former study conducted by Duke University and CFO magazine found that today’s top executives identified the difficulty of forecasting results as a major internal concern – a concern shared by leaders and managers alike.
The issue for IT finance is then, how to identify the most appropriate, cost-effective resource to address the issue of visibility and forecasting, and how to use that resource to enact positive, measurable change.
"The challenges faced by IT financial management are not due to poor methodology, but instead hindered by ineffective, inefficient, and outdated tools."
IT Financial Management (ITFM) has become one of the most important initiatives for any organization. When IT can improve service while lowering costs, everyone benefits. With the right planning and roadmap, your ITFM deployment will not only succeed – it will flourish. This eBook provides a roadmap to leading a successful ITFM implementation.Download now