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IT Financial Management

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As the IT footprint expands in the organization, CIOs budgets keep growing, some having multi-billion annual budgets in the case of large organizations.
CXOs require CIOs to provide cost transparency, control, as well as cost optimization and efficiency. We offer a unique combination of consulting service and an application to enhance your visibility on IT costs and ease communication.

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IT Financial Management

  1. 1. > IT Financial Management A BearingPoint Accelerator As the IT footprint expands in the organization, CIOs budgets keep growing, some having multi-billion annual budgets in the case of large organizations. CXOs require CIOs to provide cost transparency, control, as well as cost optimization and efficiency. We offer a unique combination of consulting service and an application to enhance your visibility on IT costs and ease communication.
  2. 2. Contents Market Drivers Our Approach Client Benefits References Contact CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator
  3. 3. IT Financial Management | A BearingPoint Accelerator Market Drivers The CIO paradox: growing IT budgets, but often insufficient cost control • Business units demand cost transparency and want a greater say in influencing their IT cost baseline. • IT costs are perceived as a black box and not directly linked with the business KPIs. • Given the likely mix of legacy and cloud-based solutions, CIO need to deal with an increasingly complex IT budget that requires improved cost management solutions and processes. CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
  4. 4. IT Financial Management | A BearingPoint Accelerator Market Drivers IT Costs are either a black box or a complexity nightmare – need for a solution Finance & Corporate Controlling Landscape Corporate Finance • Financing • Rating, valuation • Mergers & acquisitions • Ledger • Financial risk management • Reporting Corporate Controlling • Reporting • Strategic planning • Project and investment controlling • Budgeting • Accounting / billing • Risk management IT Department - existing tools/systems (partially integrated) • Project portfolio management • Service portfolio management • Contract management • Resource management • SLA repository • Service catalog management • Asset management • Configuration management • IT Performance Management • IT Cost Management • Capacity Management • Supplier Management CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Comprehensive IT Finance Management Tool
  5. 5. Our Approach We offer a unique combination of consulting service and an application that enable you to significantly optimize your IT Financial Management (ITFM) function. A highly skilled team, mixing IT consulting and financial competencies • with excellent client credentials • using a proven project methodology Powered by a user friendly tool to provide budgeting, costing and billing solutions… ...web-based and built with innovative technologies… …rapid to implement and configure CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator
  6. 6. Our Approach CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator Maturity Assessment Optimization Implementation We asses the maturity of your current setup to tailor the approach to your individual needs We optimize your existing processes and tools, and we reduce complexity to make them more valuable to you We implement a tailored financial management solution leveraging BearingPoint’s own IT financial management software or a 3rd party application Resource 1 Value: 3€ Activity 2 Value: 3€ Activity 1 Value: 13€ Technical Service 1 Value: 16€ Technical Service 2 Value: 7€ Service 1 Value: 23€ “ITFinance Operations” “ITFinancial Control” “ITFinancial Performance” Integrated IT Finance Management Project Portfolio Management Cost Take Out Services Pricing Cost Allocation and Changeback Performance Management Budgeting and Forecasting ChangeManagement ProjectManagementSupport Systems Processes Organization& Governance “Analyst” “Planner” “Strategic Planner” Leading Practice 1 2 3 4 5 “Performance Manager” “Enabler” IT planning & costing - time consumption IT planning & costing capability suboptimal not used too much excellent final goal intermediate step starting position
  7. 7. Our Approach BearingPoint IT Financial Management application is accessible from project Day 1 and can be integrated within your IS landscape for mid and long term usages. CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator Collect • Shared data: no more consolidation • Collaborative tool: workload distributed • Stored data: one single version of the truth Design • Pre-configured with BearingPoint and market framework • Model independent: integrates your own model easily Validate • Track updates and manage rights • Audit and understand cost origins: Tree based reporting Report & communicate • Multi-dimension reports • Shared across the organization: multi-language • Interactive comparisons
  8. 8. Client Benefits Obtain quickly, with a limited investment (in terms of man-days and cost) an extensive view on IT department costs ensuring: • Clear understanding of IT costs Follow-up and control by modeling and measuring costs of resources, projects, applications and services (build & run activities) • Better communication with CFO, CEO and business units From a standard breakdown by nature and cost center, to a management understanding through multi-dimensional reporting • Optimized costs through benchmarking Based on a standard IT framework, we offer extensive internal & external benchmarking possibilities • Transparent IT expenditure billing to business units Using work units and transparent drivers relationship with business are facilitated CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator
  9. 9. References Luxury company CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator Financial Performance Management BearingPoint client decided to set-up a new organization at corporate level in order to deliver IT services. To address this new scope and to support growth, this new organization has to refine its model in terms of delivery and management processes (including financial management processes). Business needs The group started transforming its IT management model in order to consolidate and optimize IT services and to allow brands to focus on their own core business Different processes, models and tools were used by brands’ former IT departments Project’s main objective was to define common financial processes (budgeting, execution and chargeback), model and tools Our approach As-is assessment (technology, process and organization) and brainstorming to define target financial management key principles Design key processes: budget elaboration, cost execution and follow-up, pilot and control, IT service chargeback and catalog mgt. Definition of master data align with management needs for reporting Catalog design, service cost, chargeback model • Harmonized billing work units and chargeback principles • Cost model principles Target financial tool scenarios Client’s results A share IT budget process for all countries and regions in line with purchase order validation process A common way to pilot and control all IT expenditures at group level A new economic model to support service catalog and associated chargeback principles
  10. 10. References Leading Global Insurance Company CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > IT Financial Management | A BearingPoint Accelerator Design of an IT cost allocation and budgeting model BearingPoint supported the client to design and implement an optimized IT cost allocation and budgeting model (IT operational planning, IT finance planning) Business needs A major transformation from a technology-based operation to a service-based organization confronted the client with several challenges: • Out-dated service definitions: disconnect between business view (demand) and IT view (supply) • Current cost allocation model did not correspond with new delivery model • Opaque and inflexible cost structure to respond to fluctuating demand • Cost allocation was opaque and not based on real use BearingPoint was asked to support the client with the development of a new IT service costing framework Our approach Revision of IT service catalog • Clean up of existing service catalog • Separation of IT service (business) view and IT product (delivery) view • Bundling of IT products to IT services • Development and implementation of a new governance layer for IT service management Design of new cost allocation model • Definition of planning elements, principles and rules • Development of allocation principles; applied sign-off distribution keys • Collection of total cost and re-allocation according to new model Rollout of a new planning and budgeting process Client’s results Operational planning, financial planning and controlling are based on an agreed service catalog Cost drivers can be identified and optimized High transparency of personnel resource utilization: • Over and under-utilizations are visible Consistent budgeting process • Transparent cost allocation Consumption-based charging, flexible response to fluctuations in demand Increase in understanding of business needs, e.g. higher service levels during contract renewal season
  11. 11. Matthias Roeser Partner BearingPoint Switzerland matthias.roeser@bearingpoint.com Contact Elisabeth Denner Partner BearingPoint France elisabeth.denner@bearingpoint.com Jérôme Martin Partner BearingPoint France jerome.martin@bearingpoint.com CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< IT Financial Management | A BearingPoint Accelerator About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com © 2015 BearingPoint. All rights reserved

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