More and more, Information Technology is expanding beyond the domain of the IT department and Chief Information Officer. For some companies, this can be a symptom of an obsolete organizational structure or outdated IT. For other companies, this can be the sign of a successful evolution in management leadership and the growing value of IT. To determine the areas of success and areas in need of attention, a complete picture of IT beyond the traditional IT department and budget visibility needs to be created. Today’s accounting systems rarely track or report total IT in a meaningful way. This presentation pulls from my own successes and challenges as CIO for an international public company as well as over 20 years of management consulting for Fortune 500 and other high performance companies. You’ll gain an understanding of techniques to both quantify and then drive multiple times more value from expanding consumption and utilization of IT throughout your company. In my experience, companies spend up to 30% more on IT than they think is currently being spent. Measuring and utilizing tools to effectively manage IT is no longer just the responsibility of the IT department and CIO.

1. © Accelaway Inc.
© Accelaway Inc.
www.accelaway.com
GROWTH OF IT OUTSIDE IT
(AN EVOLUTION OF SUCCESS)
Accelaway Inc.
Joel Munch
jmunch@accelaway.com  (303) 835-7950

2. © Accelaway Inc.
JOEL MUNCH
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JDRF - Walk To Cure Team Captain - 2006 to Present
JDRF Board of Directors, 3-terms from 2006 to 2012
(Rocky Mountain Region)
Management Consulting: Over 75 clients, most major industries
Charitable Cause: Juvenile Diabetes Research Foundation

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TOTAL IT MANAGEMENT
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UNDERSTANDING TOTAL IT
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IT IS GROWING AND EVOLVING
• In the 1970s & 1980s, economists saw a Productivity
Paradox: productivity declined as businesses deployed
more technology.
• The 1990s showed evidence of substantial improvements
of productivity.
• Later in the 2000s, economists concluded that businesses
achieved even more dramatic productivity gains resulting
from technology-enabled innovation.
• Today’s automobiles have dozens or microprocessors and
many hybrids and luxury models have over a 100
microprocessors and millions of lines of software code.
• A Boeing 787 Dreamliner has hundreds of microprocessors,
approximately 70 terabytes of solid-state storage, and
multiple wired and wireless networks.
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USING DATA ABOUT TOTAL IT
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Step 1. Define how you plan to use data about Total IT.

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PLAN OF USE SUGGESTIONS
How will we use our new insights about Total IT?
1. Identify and involve the unofficial technology leaders.
2. Give IT cause to kill outdated systems and services.
3. Leverage the CIO to get more from the other IT vendors.
4. Foster internal collaboration and competition.
5. Discover and disseminate productivity innovation.
6. Crack down on wasteful and indulgent spending.
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8. _____________________________________________
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10. _____________________________________________
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CHALLENGES OF IT OUTSIDE OF IT
• Who is selecting the technology?
• Who ensures compliance?
• Who manages the system security and sustainability?
• Who is accountable for the spending?
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“It’s in the cloud, so IT shouldn’t even care.”
“That’s for the accounting system, not us.”
“We trust our vendor and you should too.”
“This is my budget and I’ll do what I want.”

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TRADITIONAL IT
The IT Department: • People
• Employees
• Contractors
• Hardware
• Laptops & Desktops
• Servers & Network
• Software
• Server Software
• PC Software
• Services
• Network Bandwidth
• Large Outsourcers
• Projects
• ERP Implementation
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$$$

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EXERCISE: WHERE IS IT?
WHERE IS YOUR IT TODAY?
• The Board asked the CIO to give a report on the
historical trend and future outlook for “ALL” of the
company’s IT initiatives and spending.
• Let’s assume you are helping the CIO
• What departments or groups will
you need to speak with to get the
bulk of IT spending information?
(example: Marketing)
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WHERE WE FOUND IT 
• CEO
• Procurement
• Warehouse
• Financial Planning
• Maintenance
• Sales
• Tax
• Marketing
• Public Relations
• Facilities
• Engineering
• Branch Office Admin
• Buried deep in WIP & COGS
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Step 2. Get key departments/divisions involved.
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  
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 
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ITITITITITITITITIT

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“IT” CAN MEAN DIFFERENT THINGS
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Step 3. Make IT Personal and Meaningful.

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Traditional IT costs: (mostly found in IT)
Hardware, Software, People and Services
• IT Savvy Workforce
• Super-User Support
• Virtual Teams
• Cloud & Hybrid Services
• Mobile Devices
• Virtual Infrastructures
TRANSFORMATION OF IT
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EXERCISE 2: WHAT ARE IT COSTS?
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IT Costs Yes No
Company provided mobile phones  
Engineering software (e.g., AutoDesk AutoCAD)  
Apple iPads and Android tablets  
Internet bandwidth  
Leased multifunction copiers  
Conference call service for quarterly investor call  
Website development and hosting  
Tax provisioning software  
Board of Directors “online board books” portal  
ERP/Accounting Software  
Employee portal for benefits self-service  
Managed by IT =  In the I.T. Budget = $











$
$
$
$
$
$
$
$
$
$
$

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BALANCING THE ROLE OF IT
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Servant Enforcer
IT

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IT DEPARTMENT = HELP OR HINDER?
Sometimes, IT is the cause of
IT growing outside of IT
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Mobility and B.Y.O.D.

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YESTERDAY, IT OWNED:
• Sales & Customer
Relationship Management
System
• Document Management &
File Sharing
• Web Servers (Company
Website)
• Web Portals (Intranets and
Extranets)
• Customer Service Websites
• Financial Planning System
TODAY, ANYONE CAN OWN:
• SalesForce.com, Microsoft
Dynamics CRM (online), etc.
• File Sharing: DropBox.com,
Google Drive, Microsoft
SkyDrive, etc.
• Web Hosting
• Hosted SharePoint,
Documentum, Alfresco, etc.
• Facebook, Twitter, LinkedIn,
Social Media Services, etc.
• Oracle EPM in the Cloud
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NEW TECHNOLOGY AND IT VENDORS
Step 4. Drive vendor costs to IT.

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EXERCISE: FIND YOUR IT VENDORS
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VENDORS HQ Inc Site Inc TOTALS % IT IT Costs IT Dept? Inside IT Outside IT
AX CONSULTING 2,800$ 2,800$ 100% 2,800$ TRUE 2,800$ -$
DELL-USA 1,360$ 1,360$ 100% 1,360$ TRUE 1,360$ -$
REGIONAL ELECTRIC 1,300$ 1,300$ 0% -$ FALSE -$ -$
PROTIVA CONSULTING 900$ 900$ 25% 225$ FALSE -$ 225$
TA LOGISTICS 600$ 600$ 0% -$ FALSE -$ -$
MICROSOFT 400$ 400$ 100% 400$ TRUE 400$ -$
LIBERTY ENGINEERING 400$ 400$ 10% 40$ FALSE -$ 40$
ATT 270$ 70$ 340$ 100% 340$ FALSE -$ 340$
SOLVIS 320$ -$ 320$ 100% 320$ FALSE -$ 320$
CDW 280$ 30$ 310$ 100% 310$ TRUE 310$ -$
TEK NETWORK 300$ 300$ 100% 300$ FALSE -$ 300$
DC HOSTING 280$ 280$ 100% 280$ TRUE 280$ -$
TAX SOLUTIONS 210$ 210$ 100% 210$ FALSE -$ 210$
ORACLE 160$ 160$ 100% 160$ TRUE 160$ -$
AX-CONSULTING 90$ 90$ 100% 90$ FALSE -$ 90$
VIP WAREHOUSE 60$ 60$ 0% -$ FALSE -$ -$
CENTURY TELCO 50$ 50$ 100% 50$ FALSE -$ 50$
EXPENDABLES 50$ 50$ 0% -$ FALSE -$ -$
BOARD BOOKS 40$ 40$ 100% 40$ FALSE -$ 40$
DELL 30$ 30$ 100% 30$ TRUE 30$ -$
TOTALS 7,070$ 2,930$ 10,000$ OK -> 6,955$ OK -> 5,340$ 1,615$
% of Total 77% 23%
VENDORS HQ Inc Site Inc TOTALS % IT IT Costs IT Dept? Inside IT Outside IT
AX CONSULTING 2,800$ 2,800$ 100% 2,800$ TRUE 2,800$ -$
DELL-USA 1,360$ 1,360$ 100% 1,360$ TRUE 1,360$ -$
REGIONAL ELECTRIC 1,300$ 1,300$ 0% -$ FALSE -$ -$
PROTIVA CONSULTING 900$ 900$ 25% 225$ FALSE -$ 225$
TA LOGISTICS 600$ 600$ 0% -$ FALSE -$ -$
MICROSOFT 400$ 400$ 100% 400$ TRUE 400$ -$
LIBERTY ENGINEERING 400$ 400$ 10% 40$ FALSE -$ 40$
ATT 270$ 70$ 340$ 100% 340$ FALSE -$ 340$
SOLVIS 320$ -$ 320$ 100% 320$ FALSE -$ 320$
CDW 280$ 30$ 310$ 100% 310$ TRUE 310$ -$
TEK NETWORK 300$ 300$ 100% 300$ FALSE -$ 300$
DC HOSTING 280$ 280$ 100% 280$ TRUE 280$ -$
TAX SOLUTIONS 210$ 210$ 100% 210$ FALSE -$ 210$
ORACLE 160$ 160$ 100% 160$ TRUE 160$ -$
AX-CONSULTING 90$ 90$ 100% 90$ FALSE -$ 90$
VIP WAREHOUSE 60$ 60$ 0% -$ FALSE -$ -$
CENTURY TELCO 50$ 50$ 100% 50$ FALSE -$ 50$
EXPENDABLES 50$ 50$ 0% -$ FALSE -$ -$
BOARD BOOKS 40$ 40$ 100% 40$ FALSE -$ 40$
DELL 30$ 30$ 100% 30$ TRUE 30$ -$
TOTALS 7,070$ 2,930$ 10,000$ OK -> 6,955$ OK -> 5,340$ 1,615$
% of Total 77% 23%

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THE NEW TECH SAVVY WORKFORCE
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Step 5. Drive employee costs & headcount to IT.

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EXERCISE: FIND YOUR IT EMPLOYEES
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Employees Department FTE Cost % of IT TOT FTE TOT $ IT Dept? In IT FTE Out IT FTE Inside IT Outside IT
Brand, Pam Financial Plng 1 150$ 20% 0.20 30$ FALSE - 0.20 -$ 30$
Cardon, Nikki Accounting 1 180$ 90% 0.90 162$ FALSE - 0.90 -$ 162$
Carter, Jason I.T. 1 180$ 100% 1.00 180$ TRUE 1.00 - 180$ -$
Colfer, Cindy Accounting 0.8 120$ 10% 0.08 12$ FALSE - 0.08 -$ 12$
Guzac, Steve Warehouse 1 130$ 20% 0.20 26$ FALSE - 0.20 -$ 26$
Hatter, Brenda I.T. 1 150$ 100% 1.00 150$ TRUE 1.00 - 150$ -$
Johns, Kiki Engineering 1 170$ 50% 0.50 85$ FALSE - 0.50 -$ 85$
Mason, Jonny Quality 1 170$ 50% 0.50 85$ FALSE - 0.50 -$ 85$
Miller, Joe I.T. 1 270$ 100% 1.00 270$ TRUE 1.00 - 270$ -$
Morrow, Pete I.T. 1 120$ 100% 1.00 120$ TRUE 1.00 - 120$ -$
Peterson, Kelly Accounting 1 90$ 0% - -$ FALSE - - -$ -$
Turner, Bill Procurement 1 130$ 20% 0.20 26$ FALSE - 0.20 -$ 26$
Vassic, Chris I.T. 0.5 140$ 100% 0.50 140$ TRUE 0.50 - 140$ -$
TOTALS 12.3 2,000$ OK-> 7.08 1,286$ OK-> 4.50 2.58 860$ 426$
% of Total 64% 36% 67% 33%
Employees Department FTE Cost % of IT TOT FTE TOT $ IT Dept? In IT FTE Out IT FTE Inside IT Outside IT
Brand, Pam Financial Plng 1 150$ 20% 0.20 30$ FALSE - 0.20 -$ 30$
Cardon, Nikki Accounting 1 180$ 90% 0.90 162$ FALSE - 0.90 -$ 162$
Carter, Jason I.T. 1 180$ 100% 1.00 180$ TRUE 1.00 - 180$ -$
Colfer, Cindy Accounting 0.8 120$ 10% 0.08 12$ FALSE - 0.08 -$ 12$
Guzac, Steve Warehouse 1 130$ 20% 0.20 26$ FALSE - 0.20 -$ 26$
Hatter, Brenda I.T. 1 150$ 100% 1.00 150$ TRUE 1.00 - 150$ -$
Johns, Kiki Engineering 1 170$ 50% 0.50 85$ FALSE - 0.50 -$ 85$
Mason, Jonny Quality 1 170$ 50% 0.50 85$ FALSE - 0.50 -$ 85$
Miller, Joe I.T. 1 270$ 100% 1.00 270$ TRUE 1.00 - 270$ -$
Morrow, Pete I.T. 1 120$ 100% 1.00 120$ TRUE 1.00 - 120$ -$
Peterson, Kelly Accounting 1 90$ 0% - -$ FALSE - - -$ -$
Turner, Bill Procurement 1 130$ 20% 0.20 26$ FALSE - 0.20 -$ 26$
Vassic, Chris I.T. 0.5 140$ 100% 0.50 140$ TRUE 0.50 - 140$ -$
TOTALS 12.3 2,000$ OK-> 7.08 1,286$ OK-> 4.50 2.58 860$ 426$
% of Total 64% 36% 67% 33%

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MAKE THE DATA ABOUT IT USABLE
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“Our goal was to spend on IT to
become better, faster, and cheaper.
What we found is…”
Step 6. Develop the model, report and refine.

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USING IT BENCHMARKING DATA
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41% 50%
59%
50%
$9.0
$7.5
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Benchmark IT Dept
IT Department Expense
Cost per User ($000s)
IT Staff
IT Expense
41%
53%
59%
47%
$9.0
$9.9
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Benchmark IT + Other IT
IT Dept + Other IT Expense
Cost per User ($000s)
IT Staff
IT Expense
0.018
0.030 0.025
.00
.05
IT Dept Staffing Industry Benchmark IT Dept + Other IT Staffing
IT FTE Staffing per User (All Company)

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THE MANY VIEWS OF IT
Costs by System Cost Allocation by Location
(driven by users & complexity)
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L
a
b
o
r
E
x
p
e
n
s
e
$100 $39
$9
$9
$9
$8
$7
$5
$5
$4
$3
$2 $1
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Site 4
40%
Site 3
20%
Site 2
20%
Site 1
10%
Corporate
10%

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BUILD THE SUCCESS STORY
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7. Facilitate the decision making process.

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EFFECTIVELY MANAGING ALL OF IT
1. Define how you plan to use data about Total IT.
2. Get the key department/division leaders involved.
3. Make IT personal and meaningful.
4. Drive vendor costs to IT.
5. Drive employee costs and headcount to IT.
6. Develop the model, report and refine.
7. Facilitate the decision making process.
25

26. © Accelaway Inc.
© Accelaway Inc.
www.accelaway.com
GROWTH OF IT OUTSIDE IT
(AN EVOLUTION OF SUCCESS)
Accelaway Inc.
Joel Munch
jmunch@accelaway.com  (303) 835-7950