This was my deck from the 2017 IT Architects Conference in Dublin in which I explain why I think cost transparency in complex systems it a big ticket issue that we need to address.

4. Price Paid
for
Enterprise IT?
• How is the price
calculated in your
organisation?
• CAPEX + OPEX Model?
• Subscription Model?

5. Is this a good way to cost IT
services?

8. Perceived
Benefits
• In your organisation
… are the benefits
linked to the cost?

9. What happens if?
Perceived
Benefits
Perceived
Costs

10. Consequences
Reduced investment in new IT
Reduce Costs (headcount, tools, sourcing
models)
Reduced Service Levels
Negative Reinforcement Loop leading to …
outsourcing??





13. Simple right?
…. But what about that bit about
“complex systems”

14. “System”
a set of things working together as
parts of a mechanism or an
interconnecting network; a complex
whole

15. System Complexity “+”
Hardware +
Software ++
Human ++++

17. So, how can we make IT costs more
transparent?
More importantly who can make
complex system costs more
transparent?

20. How?
• Model everything as a
service
• Make every service a P&L
• Capex = Monthly
Depreciation Charge
• Opex =
• Direct Costs
• Labour
• Services
• Indirect Costs
• Supporting/Shar
ed Services
• Key Principles
• Cost “Inheritance”
• Standard interfaces (see
Tom Grave’s Ent Service
Canvas)
• TBM & ATUM

21. What it will look like to the
customer …

23. We need to figure this out for digital age systems!

27. • Menno, Tom & Charlie
Big Picture View
• Tim, Mark, Damian, Paidi
Real World Disruption
• Richard, Angela, Piaras, Eamon
Cost Transparency Primer