IT Financial Management

Centralisation, consolidation and virtualisation have improved the IT department’s overall cost performance, however the ability to assess how IT costs relate to business services has been lost. This has also led to challenges in being able to determine the value being driven from IT services.

IT consolidation, shared infrastructure, virtualisation and cloud have disrupted the way IT costs are managed. When the IT budget is split into discrete technical areas: service desk; operational support; data centre; network; server; storage; software etc., management cannot assess how IT costs relate to business services nor products. As a result, IT has become a cost centre and its value to the business has become more difficult to measure.

The Challenges:

•    Centrally held IT budgets have no mechanism of attributing cost to individual services
•    An unclear understanding of the value of IT service provision can lead to restricted, or over-inflated budgets
•    Business leaders question IT costs, without understanding the value a particular service brings
•    Innovation is limited, tactical processes flourish, and refresh cycles slow
•    Expecting a better level of service, the use of Shadow IT increases
•    Organisations gradually return to inefficient silo-ed IT, and not just in the data centre

Our Approach builds transparency as to how IT’s budget is spent

How we help

AccSL® is our custom built software solution that allows IT departments to report on IT costs per service, per product line, per business process and per application.

This financial data enables:

• Business managers to assess the relative value of IT services
• The use of value statements and financial metrics as the common language and improves the relationship between IT and the business
• Better communication to allow IT managers to work with the business and align themselves with business strategy

Granular understanding of financial metrics within IT allows IT Directors to:

• Drive focused optimisation initiatives
• Eradicate wastage
• Increase value and boost performance
• Enhance supply and demand management through robust and well maintained ITFM
• Enable the generation of straight forward business cases

Benefits:

• Brings clarity and transparency to IT services
• Drives value-based communications
• Aligns investment to business objectives
• Optimises efficiency of service delivery
• Rapid business case development
• Benchmarks against common IT frameworks
• Increases innovation and market penetration