• Save
IT Financial Management Series - Part 1: Defining a Model to Effectively Run the Business of IT
 

IT Financial Management Series - Part 1: Defining a Model to Effectively Run the Business of IT

on

  • 435 views

"This is the first part of the IT financial management series. In this webinar, Charlie Curcio, IT CFO shares his experience in defining what it means to Run the Business of IT. ...

"This is the first part of the IT financial management series. In this webinar, Charlie Curcio, IT CFO shares his experience in defining what it means to Run the Business of IT.
On average companies spend 5% of the total operating budget on IT, increasing pressure on executives to reduce costs, communicate value and align IT investments with business priorities to drive a competitive advantage.
Today, many high performing IT organizations are adopting Integrated IT Portfolio Analysis (IIPA) best practices to effectively Run the Business of IT. Developing a holistic data model and financial framework is key to driving transparency across disparate IT domains and providing accurate and reliable metrics to enhance decision making."

Statistics

Views

Total Views
435
Views on SlideShare
435
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    IT Financial Management Series - Part 1: Defining a Model to Effectively Run the Business of IT IT Financial Management Series - Part 1: Defining a Model to Effectively Run the Business of IT Presentation Transcript

    • Agenda • • •
    • The IT Landscape How is IT perceived in your organization?
    • Best Practice Disciplines Running the Business of IT Strategy IT Governance Financial Mgmt. Resource Mgmt. BI & Metrics
    • Strategy • Multi Year Roadmap • Business Alignment • Architectural Blueprint • Capital Allocation IT Governance • Program/ Project Mgmt. • Strategic Alignment • Capacity Mgmt. • ROIs / Lookbacks • Risk Mgmt. Resource Mgmt. • Tools • Training • Certification BI & Metrics • Outcome based • Service Level Agreements • Ratios • Benchmarks • Dashboards & Reports Financial Mgmt. • Efficient and Effective • Smarter and more focused • Accountability • Information Mgmt. • Transparency Best Practice Disciplines Drill Down
    • Keys to Financial Transparency Change the conversations with the business • Consistency and simplicity • Actionable metrics and scorecards • Understanding of key variable costs and service offerings • Understanding of fixed costs and opportunities to influence • Increased variability of expenses • Informed decision making • Proactively manage across the entire IT Portfolio • Enhanced ability to do planning and forecasting • Focus on providing insight and analytics instead of explaining the Chargeback • Industry benchmarks Goals Benefits
    • The IT House Demystifying IT Financial Management Maintenance& Break/ Fix Development Projects(New / Enhancement / L&R) Services Efficiency& Performance Tuning Projects Applications Infrastructure Efficiency & Availability Optimize Create Capacity
    • Polling Question Select the answer that best describes your organization’s IT Financial Management(ITFM) status A. We have implemented an ITFM process and tool B. We have started to implement an ITFM process and tool C. We intend to start implementing an ITFM process and software D. We have no plans at this stage
    • Average 2012 IT Spend By Applications, Infrastructure & IT Management 35% 55% 10% Applications Infrastructure IT Management Gartner IT Metrics: IT Spending and Staffing Report, 2013
    • Gartner Defines Emerging Market From IT PPM to Integrated IT Portfolio Analysis • • • • UMT positioned as Visionaries in Gartner’s 2012 IIPA Magic Quadrant
    • Data Management Strategy Key Challenges
    • Application Side of the House Average 2012 IT Spend - Cost Drivers for Applications 35% 55% 10% Applications Infratsructure IT Management 46% 54% Gartner IT Metrics: IT Spending and Staffing Report, 2013
    • Applications Getting to the Next Level      Integrated IT Portfolio Analysis  Drive Value Creation  Value Creation / Value Sustaining Ratio  Drive Down Unit Cost and Create Capacity  Better Integration with Infrastructure  Application Rationalization  Total Cost of Ownership (Run / Maintain)  Decomplexing the Environment
    • Applications The Building Blocks Actionable Information Portfolio Alignment/Capacity/# of Projects/Key Initiatives/ Development Life Cycle/Sourcing Ratio Unit Cost/Projects on Time/Budget The Right Data Elements Employee Labor Consultants/Software Programs/Resources by project Data Quality Resource Utilization Time Reporting – Is everyone reporting? Overtime? Spend Buckets – New, Enhancements, Legal & Regulatory, Maintenance Maximizing Accounting for SOP 98-1 – Well defined Phases Project start / end dates
    • Infrastructure Side of the House Average 2012 IT Spend - Cost Drivers for Infrastructure 40% 21% 8% 12% 19% Data Center End-User Computing IT Service Desk Voice Network Data Network Gartner IT Metrics: IT Spending and Staffing Report, 2013 35% 55% 10% Applications Infrastructure IT Management
    • Infrastructure “Running the Factory”- Today     
    • Mainframe Z/OS Z/Linux Distributed App Hosting AIX VM Wintel Storage Distributed Tier 1 Distributed Tier 2 Distributed Tier 3 Output Processing Cut Sheet Continuous Feed Fiche Comms Personal Comm (email) Citrix Office Comm Desktop PC Asset Blackberry Metered Services Infrastructure Moving to the Next Level      
    • Keys to Data Management Across all IT Domains    
    • How important are those Data Management    
    • IT Executives Need a Management System IIPA = ERP for IT Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization— embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.[1] Wikipedia (1) Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1, John Wiley & Sons, Inc. p. 707
    • Building an Effective IIPA Solution Approach & Outcomes • Industrial strength, repeatable and scalable • Overcome the obstacles around people, process and technology • Reporting capabilities • Metrics and insights • IT Dashboard • Build an IT Asset Inventory • Develop Transformation Roadmaps • Enhance financial transparency • Improve Chargebacks • Scenario Analysis Approach Outcomes
    • The IT Financial Maturity Curve
    • Engage the IT Finance Team Develop a Data Strategy Framework Create a “Heat Map” Prioritize the Pain Points Develop an Action Plan Getting Started A Phased Approach Works Best Data Definitions Consistency Business Cases Cost Management Application Portfolio Management Too Many Spreadsheets Reporting Service/Infra- structure Charge backs Budgeting/ Forecasting
    • Getting Started A Phased Approach Works Best • Develop Standard Template • Set Cost Thresholds • Review at Governance Committee Business Cases • Develop Service Catalog • Map Unit Costs • Create Shadow Billing Service Chargeback • Set Acceptable Ranges • Require Variance Explanations • Introduce “Sweep the Saves” Program Forecasting Engage the IT Finance Team Develop a Data Strategy Framework Create a “Heat Map” Prioritize the Pain Points Develop an Action Plan
    • Increase the strategic value of IT Maximize Value Creation/ Sustaining Ratio Sustained Efficiency & Effectiveness Transparency Drive Revenue & Earnings Growth A High Performing IT Organization What’s the Prize?
    • Call to Action…   
    • What should I do Next?   
    • Demystifying IT Financial Management Register for next webcasts in the Series www.umt.com
    • Questions & Answers