The document discusses the importance of IT financial management in running IT successfully. It outlines key components of the IT financial management lifecycle including planning, budgeting, accounting, chargebacks, spend analysis, and portfolio management. Adopting these practices and using tools to support them can help optimize costs, ensure alignment between IT and business objectives, and deliver value from IT investments.
This is a presentation I gave at the October 2007 Enterprise Architectures Conference. The presentation covers approache sto developing multi-year roadmaps for implementing business strategy.
Taking a Performance-Based Services Approach to Improve the Effectiveness of ...Alan McSweeney
Performance-Based Services Contracting (PBSC) is concerned with the structured of the results and measurable outcomes to be achieved rather than the manner by which the work is to be performed.
Performance-Based Services Contracting approach is about defining what the required results of a service will rather than how the contractor will perform the tasks.
This is a presentation I gave at the October 2007 Enterprise Architectures Conference. The presentation covers approache sto developing multi-year roadmaps for implementing business strategy.
Taking a Performance-Based Services Approach to Improve the Effectiveness of ...Alan McSweeney
Performance-Based Services Contracting (PBSC) is concerned with the structured of the results and measurable outcomes to be achieved rather than the manner by which the work is to be performed.
Performance-Based Services Contracting approach is about defining what the required results of a service will rather than how the contractor will perform the tasks.
Business Improvement initiatives are getting a lot of press these days: “..our projects saved over $10M in the first 12 months of deployment using BPM” . It seems logical for an organization to jump onto the process improvement bandwagon. Much is promised of business improvement efforts, and there are many capable consultants and companies willing to support a company’s BPM deployment that can last months to years. But how does an organization know that the business improvement efforts will really result in a quantifiable benefit to the business? Process improvement initiatives are not inexpensive to start or sustain over many years, and most executives require the clear identification of benefits to justify the expenditure of training resources and driving project work before approving a long-term initiative.
This presentation was conducted by Peter Glynne to the Yorkshire & North Linconshire APM membership providing a practical insight into the realisation of benefits
Business Intelligence Dashboard Design Best PracticesMark Ginnebaugh
Microsoft BI expert Dan Bulos spoke on Dashboard Design Best Practices to the Bay Area Microsoft Business Intelligence User Group.
This presentation shows techniques for displaying data in a dashboard for maximum impact. Dan also discusses various tools available in the Microsoft BI stack – Reporting Services, Excel, PerformancePoint and the new entry, Power View.
IBM Cognos - Hälsokontroll på ekonomiavdelningen med mål att bli värdeskapareIBM Sverige
Som en en spinoff från IBM's CFO survey 2010, ger vi dig möjligheten att staka ut vägen hur du skall bli bättre än dina konkurrenter. Denna presentation hölls på IBM Cognos Performance 2010 av Jonas Berg, Sr Managing Consultant, Business Analytics & Optimization, IBM
Brief introduction of Morgan Clark & Company, who we are, what we do. Interested to meet us? Call +31 20 737 05 37 or e-mail info@morganclark.com. You can also visit our website: morganclark.com
A Practical Approach to Introducing BPM into the Enterprisejamieraut
BPM is touted as being able to solve a number of business and technology challenges ranging from simple process modeling to complex application integration. Given this broad range of capabilities how does an organization get started? What tools can be leveraged in a pragmatic, cost-effective way to initiate a BPM project? What are some of the organizational challenges – both business and IT – that need to be addressed? Leveraging recent work at a Fortune 500 company, this presentation will focus on how one CSC client approached adding BPM to their corporate capabilities portfolio. The speakers will cover the challenges, the successes and the failures.
This is an interesting application of Path Analysis leveraging Richard Florida's findings regarding real estate valuations in different cities. This example serves as an introduction to Path Analysis.
Business Improvement initiatives are getting a lot of press these days: “..our projects saved over $10M in the first 12 months of deployment using BPM” . It seems logical for an organization to jump onto the process improvement bandwagon. Much is promised of business improvement efforts, and there are many capable consultants and companies willing to support a company’s BPM deployment that can last months to years. But how does an organization know that the business improvement efforts will really result in a quantifiable benefit to the business? Process improvement initiatives are not inexpensive to start or sustain over many years, and most executives require the clear identification of benefits to justify the expenditure of training resources and driving project work before approving a long-term initiative.
This presentation was conducted by Peter Glynne to the Yorkshire & North Linconshire APM membership providing a practical insight into the realisation of benefits
Business Intelligence Dashboard Design Best PracticesMark Ginnebaugh
Microsoft BI expert Dan Bulos spoke on Dashboard Design Best Practices to the Bay Area Microsoft Business Intelligence User Group.
This presentation shows techniques for displaying data in a dashboard for maximum impact. Dan also discusses various tools available in the Microsoft BI stack – Reporting Services, Excel, PerformancePoint and the new entry, Power View.
IBM Cognos - Hälsokontroll på ekonomiavdelningen med mål att bli värdeskapareIBM Sverige
Som en en spinoff från IBM's CFO survey 2010, ger vi dig möjligheten att staka ut vägen hur du skall bli bättre än dina konkurrenter. Denna presentation hölls på IBM Cognos Performance 2010 av Jonas Berg, Sr Managing Consultant, Business Analytics & Optimization, IBM
Brief introduction of Morgan Clark & Company, who we are, what we do. Interested to meet us? Call +31 20 737 05 37 or e-mail info@morganclark.com. You can also visit our website: morganclark.com
A Practical Approach to Introducing BPM into the Enterprisejamieraut
BPM is touted as being able to solve a number of business and technology challenges ranging from simple process modeling to complex application integration. Given this broad range of capabilities how does an organization get started? What tools can be leveraged in a pragmatic, cost-effective way to initiate a BPM project? What are some of the organizational challenges – both business and IT – that need to be addressed? Leveraging recent work at a Fortune 500 company, this presentation will focus on how one CSC client approached adding BPM to their corporate capabilities portfolio. The speakers will cover the challenges, the successes and the failures.
This is an interesting application of Path Analysis leveraging Richard Florida's findings regarding real estate valuations in different cities. This example serves as an introduction to Path Analysis.
10 Principles of Good Business Process ManagementJan vom Brocke
Our findings allow practitioners to comprehensively scope their BPM initiatives and provide a general guidance for BPM implementation. Moreover, the principles may also serve to tackle contemporary issues in other management areas.
We identify ten principles which represent a set of capabilities essential for mastering contemporary and future challenges in BPM. Their antonyms signify potential roadblocks and bad practices in BPM. We also identify a set of open research questions that can guide future BPM research.
This is the first work that distills principles of BPM in the sense of both good and bad practice recommendations. The value of the principles lies in providing normative advice to practitioners as well as in identifying open research areas for academia, thereby extending the reach and richness of BPM beyond its traditional frontiers.
The identification and discussion of the principles reflects our viewpoint, which was informed by extant literature and focus groups, including 20 BPM experts from academia and practice.
The Future of BPM: Tips, Trends & Customer Pain PointsBonitasoft
Learn why many organizations are choosing BPM, and how BPM is driving changes within these organizations.
Through a special partnership with blogger and CTO, Steve Hamby, you will learn about the recent trends that has propelled the growth of BPM, and about the common problems BPM users run into.
Originally presented at the Future of Web Design in San Francisco, Patrick Neeman talks about the different stages of the User Experience career path and where the opportunities lie for designers to grow and succeed.
My career path through images, like a visual resume.
Sound: Llamas en Libertad (flames in freedom) from Jean Pierre Magnet's Serenata Inkaterra (Inkaterra Serenade)
Why IT Governance is a powerful business tool. Evaluating the potential for value creation –
the Governance Scorecard. Using the Scorecard to improve IT integration.
Enterprise IT Governance if properly supported eventually becomes embedded in the culture and
decision making process. The larger and more diverse the enterprise, the slower the evolutionary
process becomes. Digité Enterprise helps maintain a shared vision by allowing talent, skills
and knowledge to collaborate to achieve common goal, share ownership, and foster collective
communication with complete focus on the results.
CIO Advisory Services Guide | White Paper from Brittenford SystemsBrittenford Systems
IT departments are under stress as the need for financial resources becomes overwhelming and technology departments are required to do more with less, using existing IT systems while having to also move or keep systems online. This white paper serves as a guide to CIO advisory services and discusses the current stress on the IT industry.
This independent survey was commissioned by
Savvis and conducted with 550 CIOs, IT Directors,
Heads of IT and Senior IT Managers of global large
enterprises based in the USA (200), UK (100),
Germany (100), Japan (50), Hong Kong (50) and
Singapore (50), and was completed in August
2012. The research was conducted by Vanson
Bourne, a research based technology marketing
consultancy offering clients analysis and advice
based on incisive, rigorous research into their
market environment. The research used a
combination of online fieldwork methodology and
telephone interviewing. All research carried out by
Vanson Bourne adheres to the latest MRS Code
of Conduct. Demographic detailing respondent
communities includes industry sector, country
in which the respondents were based, and size
of business.
Understanding COBIT 5.0 (IT Governance) by Mr. Avinash Totade
President of Information Systems Audit and Control Association (ISACA) UAE Chapter
OpenThinking Day 2012
Australian cio summit 2012 bill frangeskakis news releaseTurning Business D...IT Network marcus evans
Turning Business Data into Dollars: Interview with: Bill Frangeskakis, General Manager, Frontline, a sponsor company at the marcus evans Australian CIO Summit 2012, on using data to produce stronger results.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
1. The Importance of IT Financial Management
in Successfully Running IT
David Baker
Chief Architect
Diamond Management & Technology Consultants
david.baker@diamondconsultants.com
November 11, 2008
2. A significant portion of business users concur that IT is a strategic
investment
87% of business leaders concur
that IT plays a major role in the
strategic success of their
business1
77% of CFOs say they regard IT
as a strategic function instead of
as a utility2
1. 2007 Digital IQ study, Diamond Management & Technology Consultants
2. CFO magazine , December 2005
Page 1
3. Yet there is growing concern about increasing costs, lack of
IT/Finance alignment, and poor return on IT investments
Increased demand for new
technologies and complexities has
frequently caused IT costs to grow
faster than other costs
CIOs in 250 firms across Europe
found that nearly three-quarters of
decisions about innovation
investments are made without full
consideration of the impact on IT1
60% of CFOs indicated that IT did not
meet their performance expectations2
45% of CFOs identify the challenge of
obtaining metrics to identify true IT
1. Computer Associates
2. CFO magazine , December 2005
value and cost3
3. Strengthening IT-Finance Collaboration to Drive ROI, Corporate Executive Board, 2007
Page 2
4. Proper financial management has become integral to ensuring IT
achieves the business objectives
IT Financial Management
. . . is the sound management of
monetary IT resources in support of
organizational goals
. . . provides the expense, or cost, side
of the equation for making business
decisions regarding changes in the IT
infrastructure, systems, staffing, or
processes
. . . provides answers for how IT can
help deliver organizational goals and
what IT contributes to shareholder value
Page 3
5. Our research and experience indicate IT organizations are
transforming to value-oriented service providers
Common Attributes of a Common Attributes of a
Cost-Focused IT Organization1 Value-Oriented Service Provider1
Existing IT capacity, skills and Business strategy and business
cultural appetite determine work priorities determine IT work
selection and prioritization prioritization
Budget and cost oriented with a Emphasis on ROI and focus on
focus on variances explanation realizing business benefits
Implementation plans are typically Implementation plans driven by a
effort driven e.g. resource and time commitment to deliverables
Spending concentrated on work Spending concentrated on work
that is relatively short and perhaps that produces business value
easier to implement regardless of duration and ease
Cultural aversion to risk and Willingness to accept and
change aggressively manage reasonable
amounts of risk
1 Based on Diamond’s primary research and experience with large IT organizations across multiple industries
Page 4
6. We’ve identified five barriers restricting companies from making
that transition
Page 5
7. Optimizing your IT financial management process avoids these
barriers and aids your transition to a value-oriented provider
Planning
Annual
Analyzing Budgeting
Ad hoc Portfolio Quarterly
Management
Continuous
Charging Accounting
Monthly Daily/Monthly
Note: cycle is not necessarily completed in a
continual loop since timing can be different
for each component
Page 6
8. IT Planning is the annualized activity to determine the IT initiatives,
to support both the business strategies and the IT strategies
The very first step in planning for IT
spend should be the business
strategy
Then, IT strategy should be derived
from the business strategy and add
other critical elements that are not
on the business radar
Demand management is the filter
that considers both strategies and
criticalities to form the desired
portfolio of IT spend for the next 12
months.
Page 7
9. Top 10 most important planning pitfalls to avoid
Management’s assumption that the planning function can be delegated to the planner
Top management becomes so engrossed in current problems that it spends insufficient time
on long-range planning
Failure to develop goals suitable as a basis for formulating long-range plans
Failure to assure necessary involvement in the planning process of key line personnel
Failure to use plans as standards for measuring managerial performance
Failure to create a company climate that is congenial and not resistant to planning
Assuming comprehensive planning is separate from the entire management process
Injecting so much formality into the system that it restrains creativity
Failure of top management to review with department heads the long-range plans they
developed
Top management’s consistently rejecting the formal planning mechanism by making intuitive
decisions which conflict with the formal plans
Source: Pitfalls in Comprehensive Long-Range Planning, G. A. Steiner
Page 8
10. Budgeting ensures that correct funding is available for delivery of
IT Services and that those funds are not over-spent
Limits on capital expenditure
Limits on operational expenditure
Limits on variance at any point in
time, between actual and predicted
spend
Guidelines on how the budget must
be used
An agreed workload and set of
services to be delivered
Limits on expenditure outside the
organization or group of
organizations
Agreements on how to cope with
exceptions.
Page 9
11. Budgets may be fine for managing capital in a slow-moving,
hierarchical company, but they have critical flaws in today’s economy
Checklist to
Budgeting Flaws
Improve the Process
Little help for today’s performance 1.Begin with objectives rather than
drivers (innovation rates, service numbers
levels, quality, and knowledge
sharing don’t lend themselves to 2.Ensure your unit’s objectives align
budget quantification) with the company’s
Same treatment of all employees 3.Link the budget to performance
– as costs drivers
(talent and involvement are not in 4.Budget by walking around
direct relationship with salary)
5.Keep it out of the file cabinet
Compartmentalization of
companies into small units 6.Explain the payoffs
(No incentive to look outside of
one’s unit)
Page 10
12. Cost Accounting is an inward-looking activity that examines the
actual costs of performing IT activities
Cost Accounting breaks down
costs associated with particular
activities and assigns them to
projects, customers, or services
Cost Accounting can also be used
to measure the efficiency of the IT
Department over time in
management of trends and
benchmarks
Page 11
13. Overview of Cost Accounting Elements
Asset Management Employee Time Keeping Project Accounting
• Tracks all Computer- • Tracking time across all • Projects must track the
Related Expenses by IT employees assists with actual expenses, by all
specific cost elements, utilization and allocation types of expense, and
according to cost of employee expense compare it to original Cost
management guided / Benefit Analysis
capitalization guidelines • Contractor and established within plan
Outsourcer expenses
• Hardware, software, and must be tracked and • Project Accounting is
data communications attributed to work efforts critical to track variances
often contribute a large to planning estimates
chunk of this cost
Page 12
14. Chargebacks allocate the costs of IT services back to the business
units and are optionally based on activity based costing
Influence business unit behavior
Rein in spiraling costs
Enhance transparency
Some business units consume more
IT resources than others
IT can demonstrate good
management and effective
accounting of IT resources
IT chargeback data can provide
valuable insight for budgeting, cost-
benefit analysis, product-costing and
profitability reporting
Page 13
15. There are several keys to successfully deploying chargebacks
• Analyze cost drivers
Understand IT • Find ways to convert fixed cost to variable costs (on some timeframe, all costs
are variable)
Costs • Benchmark key processes
• Look for ways to cut costs
“Renaissance”
people to cross the • Business Unit managers accountable for IT costs must understand of IT
Business / IT • IT managers need to understand the business direction
boundary
Promote healthy • Business pushes IT to keep service quality high and costs low
• Business pushes IT to match costs with value to free funds for business priorities
tension between • IT pushes business to question the importance of their IT requests
business units and • IT pushes business to keep focus on changes in demand
IT • IT pushes business to recognize need to leverage IT across Business Units
• IT needs to deliver cost reductions for variable costs when the Business makes
Need to deliver on decisions to reduce service levels or usage
decisions • The Business will need to make service level changes or sunset services to allow
IT to reduce costs
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16. IT Spend Analysis looks inward to examine where IT dollars are
spent and identifies opportunities for future savings
IT Spend Analysis typically gathers
data from the general ledger and
many other data sources for
analysis purposes
The spend data is compared to
benchmarks and analyzed for
trends that can result in savings
opportunities
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17. Here are three typical spending gaps with opportunities to reduce
each
A This gap is addressed through
Gap may be caused by
ineffective procurement utilization and capacity analysis
related to current requirements and
practices such as multiple
vendor contracts
What is
paid for
expected growth. This analysis will
C identify any overcapacity in the
What is
Gap caused by lack of in-
depth knowledge of
infrastructure.
planned application profiles and
B capacity forecasts B This gap is addressed through an
Cost
What is
improved infrastructure growth
used
A Gap caused by system
plan based on expected demand
configuration optimized for
availability & reliability or by
and tightly linked to the capital
What is
required
lack of awareness of planning process
available capacity
Reduction Opportunity C This gap is addressed through
Capacity
contract negotiations, right-sizing
of contracts, and termination of
contracts
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18. The IT Finance cycle is unified by the continuous process of IT
Portfolio Management
Unifies the management of the
complex world of business
initiatives, technology upgrades,
and overall IT management.
The combination of practices, tools
and techniques used to measure,
control and increase the return on
individual IT investments as well as
on an aggregate enterprise level
A portfolio can include any and all
direct and indirect IT projects and
assets, including components such
as infrastructure, outsourcing
contracts and software licenses.
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19. Portfolio Management places projects and assets into categories
for planning and analysis
Implicit
Distinguish Define Measure, Diagnose, Make
IT
categories criteria assess recommend decisions
portfolio
Invest
1 4 1 3 2 3
2 2 1 2 5 1
A 2 3 2 0 0 1 Adjust
4 0 5 0 2 4
1 1 3 0 2 3
0 2 2 2 0 1
Sunset
B
5 3 0 1 2 2
“This huge Different Screens Fact-based Business Faster and
collection assets that insight into language better
of projects judged and match asset- investment
and managed strategic specific decisions
assets…” differently intent performance
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20. Adopting a portfolio approach brings logic, structure and takes
emotion out of spending decisions
Portfolio of
Technology Driven Innovations
investments in IT
assets and (TDIs or OCIs)
projects Option creating
Business unit level
investments with
power to transform
5-10%
of average portfolio
Enterprise level
Focused Business Improvements
(FBIs)
Assets and projects
aimed at incremental
operational gains
20-30%
of average portfolio
Core Business Enablers
(CBEs)
Assets that form the
core IT infrastructure 60-75%
of the organization of average portfolio
Note: Averages based on Diamond client experience.
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21. There are 3rd party frameworks available to help you optimize you
management of IT Finance
Cost Accounting Financial
management
Budgeting
x x
Project Appraisals Cost
Budgeting
Project
investment
Cost
Cost Recovery
accounting recovery
appraisals
Budgeting
x Accounting x
Charging
Value Governance
x Portfolio Management x
Investment Management
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22. Tools are an enabler of many components of the lifecycle;
however, not all components require complex tools
Planning • EA repositories (EA documents, roadmaps and strategy maps)
• The outcomes are inputs to Portfolio Management solutions
Annual
Budgeting • Typically Financial Systems, working documents are usually spreadsheets
• Tracking and reporting tools are commonly spreadsheets
Quarterly
Accounting • Commonly in industry best practice ERP and/or Financial systems
• Output tracked and often reported in spreadsheets
Daily/Monthly
Charging • Can consist of multiple components: hardware tools to manage “usage”,
industry applications to compile information and produce “bill” to business
Monthly customers
Analyzing • Multiple tools leveraged based upon timeline and budget: examples include
spreadsheet, client database tools, or more sophisticated analysis tools –
Ad hoc most are ad-hoc and fed from existing tools
Portfolio Mgmt • For IT Financial Management, probably the most mature in PPM (Project
Portfolio Management) and EPM (Enterprise Portfolio Management) tools;
Continuous many vendors offer multi-functional tools
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23. Key Takeaways
Financial Management is an important discipline required to transform IT to a
value oriented service provider
Start with solid planning, use enterprise architecture techniques to ensure
you have the right projects identified
Create budget categories and budgets, tie them to your Portfolio
Management efforts
Track your assets, project expenses, and time spent on projects
Consider using chargebacks to increase transparency of IT service costs
Monitor your spending, continually check alignment with budget
Use your planning, budgeting, historical data and monitoring to make
portfolio management decisions (invest, adjust, sunset)
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