From immature, yet complex cost models to cumbersome spreadsheets, NY OSC knew it needed a broader, holistic approach to providing transparency for partners to make good spending decisions. Now with improved communication and real-time chargeback, David shares the OSC’s step-by-step journey to success.

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OSC’s Journey into IT Invoicing
or
“Don’t fly the plane while you’re trying to build it…”

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OSC’s Journey into IT Invoicing
David Van Deusen
Director of IT and IT Business Management

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OSC’s Journey into IT Invoicing
• New CIO Division was created
• Concept of IT Internal Economy was announced
• Service catalog was established
• Initial cost models were created
• Spreadsheets were used to create and publish IT
invoices
Background Information

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OSC’s Journey into IT Invoicing
Established two fundamental milestones:
• Annual Rate Setting process
• Annual True Up Invoices
Internal Economy Schedule

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OSC’s Journey into IT Invoicing
• Spreadsheets were numerous and cumbersome
• Cost models were immature, yet still complex
• OSC had both “show back” and “charge back”
customers
Initial challenges encountered

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OSC’s Journey into IT Invoicing
• Acquisition of a software tool specifically
designed for this purpose
• Conversion of spreadsheet models into software
tool
• Establish a solidified schedule for both Rate
Setting and the Annual Invoice
Strategy for improvement

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OSC’s Journey into IT Invoicing
• Define clear goals and objectives
• Form a team dedicated to understanding and
meeting these goals and objectives
• Develop a project plan for implementation
• Engage and collaborate with Finance colleagues
• Involve the customer to ensure “buy in”
PAUSE and EVALUATE

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OSC’s Journey into IT Invoicing
You need a period of
time on auto pilot…
“Don’t fly the plane while you’re trying to build it…”

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OSC’s Journey into IT Invoicing
• Simplify cost models (what level of maturity?)
• Develop repeatable processes for collection of
metrics
• Continually involve internal IT staff so they share
the objectives and vision
• Evaluate the total number of customers/invoices
to be generated and estimate the overhead
required to do so
Take a broader, holistic approach

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OSC’s Journey into IT Invoicing
• Models were too complex, requiring overly
demanding collection of metrics
• No dedicated staffing resources
• Challenged to meet our own deadlines
• Always have been flying the plane – never on
auto pilot
Addressing our primary challenges

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OSC’s Journey into IT Invoicing
• The overall initiative was more complex than had
been envisioned
• Dedicated, knowledgeable staff are necessary to
be able to meet ongoing demands
• The data presented must have integrity and
charges must be defendable to customers
• Information needs to be presented “on schedule”
to instill customer confidence
Lessons learned

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OSC’s Journey into IT Invoicing
NYS OSC has:
• Established a dedicated team to support the Internal
Economy and IT Invoicing
• Fully engaged and partnered with our Finance
colleagues to help drive home the point with
business customers that any expenditures must be
adequately supported by budget appropriations
Our current approach

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OSC’s Journey into IT Invoicing
• Developed a strategic direction and developed a
detailed project plan to facilitate the redefinition of
short and long term objectives
– Upgraded to the current release level of our software tool
to take full advantage of “built in” functionality
– Assessed and considered what is the appropriate level of
detail to be provided to the customer
– Provided more frequent and better communication to our
customers
Our current approach

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OSC’s Journey into IT Invoicing
– Changed our stance on Rate Setting to now characterize
this process as “Projected Estimation”
– Made a strategic decision to invoice in “real time,”
charging customers the actual expenses incurred during
our fiscal year
• Planned for a period of auto pilot
Our current approach

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OSC’s Journey into IT Invoicing
Success!
...with opportunities for
increased maturity
and
continued improvement

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OSC’s Journey into IT Invoicing
Thank you!
Questions?