Pete Hidalgo presented on IT chargeback at the ITFMA Conference in Pittsburgh on April 15, 2015. The presentation discussed establishing an IT chargeback process to increase cost transparency, educate customers on IT service value, and improve efficiencies. It covered defining IT services, calculating unit costs, implementing usage reporting and chargeback models, and automation. The goal is to evolve from high-level allocations to individual service-based charging over time using guidance like consistency, fairness, and transparency. Automation is important to realize full benefits and perform more frequent chargebacks. The presentation included examples from organizations that implemented chargeback successfully.
Marlabs Capabilities Overview: Application Maintenance Support Services Marlabs
Marlabs application development and support services include application design, development, systems integration/consolidation, re-engineering, and implementation of packages.
Service management
ITIL and the Service value system
ITIL Guiding principles
ITIL Service value chain
ITIL Four dimensions
ITIL Practices
ITIL Continual improvement
ITIL Certification scheme
What’s in it for me?
Digital Transformation And Enterprise ArchitectureAlan McSweeney
Digital transformation - extending and exposing business processes outside the organisation - by implementing a digital strategy – a statement about the organisation’s digital positioning, operating model, competitors and customer and collaborator needs and behaviour through the delivery of digital solutions defined in a digital architecture – a future state application, data and technology view to achieve digital operating status - is potentially (very) complex.
Digital architecture does not exist in isolation entirely separate from an organisation’s overall enterprise architecture. Digital architecture must exist within the within the wider enterprise architecture context.
Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation.
The management function that drives digital transformation needs to involve the enterprise architecture function in the design and implementation of digital strategy and organisation, process and policies and the creation of a digital architecture. Management must appreciate the technology focus and the benefits of an enterprise architecture approach.
The early involvement of enterprise architecture increases successes and reduces failures. Management must trust and involve enterprise architecture. The enterprise architecture function must accept and rise to the challenge and deliver. The enterprise architecture function must allow its value to be measured.
How To Reduce Application Support & Maintenance Cost HCL Technologies
The Gartner report contains 5 Alternative Ideas for Applications Management. Learn how to proactively reduce Application support & maintenance cost and impact business performance.
With the continual media focus on Social, Mobile, Analytics and Cloud Services, IT executives can be forgiven for forgetting that a high percentage of existing IT spends remains locked in the management of the existing IT stage. If current approaches to managing IT are not transformed, they will continue to remain locked. The only successful strategy deployed by many organization is the squeeze their IT services providers for incremental discounts. A recent Gartner report stated that "on average in 2012, 35% of IT spending was on applications, 55% was on infrastructure and the remaining 10% was on IT management, finance and administration activities. 50% of an application's cost across its lifecycle is support and maintenance. IT leaders are faced with a paradox of shrinking budgets but a business imperative to grow. Given that fewer than 20% of organizations have an application services strategy, ASM suddenly becomes a big budgetary blind spot
HCL has created a radical new approach. It has combines various industry-leading best practices, including LEAN process Management Principles with focused automation and unstained knowledge reuse for the support and maintenance of applications while creating incremental value for business every day with guaranteed cost reductions: Alternate Applications Support and Maintenance or ALT ASM.
In summary ALT ASM seeks to:
1) understand the cause of ‘work’ in Application Support
2) Stop the ‘work’ arising in the first instance
3) Manage the ‘work’ more effectively when it has arisen
ALT ASM engagements are substantially forward-looking. They continuously monitor applications to identify functional and technical re-engineering requirements. Dynamic business demand for enhanced functionality of legacy applications is met through staffing flexibility. Reduced It complexity is attained by identify redundant applications for decommissioning. The application portfolio is kept lean and total cost of ownership (TCO) is kept low.
More importantly, ALT ASM includes the monitoring of both IT key performance indicators and business process KPIs. Using business process and application visibility tools and process watch dashboards, ALT ASM is able to align IT systems to business processes. ALT ASM propagates alternative thinking of proactively reducing incidents and putting business process first.
Marlabs Capabilities Overview: Application Maintenance Support Services Marlabs
Marlabs application development and support services include application design, development, systems integration/consolidation, re-engineering, and implementation of packages.
Service management
ITIL and the Service value system
ITIL Guiding principles
ITIL Service value chain
ITIL Four dimensions
ITIL Practices
ITIL Continual improvement
ITIL Certification scheme
What’s in it for me?
Digital Transformation And Enterprise ArchitectureAlan McSweeney
Digital transformation - extending and exposing business processes outside the organisation - by implementing a digital strategy – a statement about the organisation’s digital positioning, operating model, competitors and customer and collaborator needs and behaviour through the delivery of digital solutions defined in a digital architecture – a future state application, data and technology view to achieve digital operating status - is potentially (very) complex.
Digital architecture does not exist in isolation entirely separate from an organisation’s overall enterprise architecture. Digital architecture must exist within the within the wider enterprise architecture context.
Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation.
The management function that drives digital transformation needs to involve the enterprise architecture function in the design and implementation of digital strategy and organisation, process and policies and the creation of a digital architecture. Management must appreciate the technology focus and the benefits of an enterprise architecture approach.
The early involvement of enterprise architecture increases successes and reduces failures. Management must trust and involve enterprise architecture. The enterprise architecture function must accept and rise to the challenge and deliver. The enterprise architecture function must allow its value to be measured.
How To Reduce Application Support & Maintenance Cost HCL Technologies
The Gartner report contains 5 Alternative Ideas for Applications Management. Learn how to proactively reduce Application support & maintenance cost and impact business performance.
With the continual media focus on Social, Mobile, Analytics and Cloud Services, IT executives can be forgiven for forgetting that a high percentage of existing IT spends remains locked in the management of the existing IT stage. If current approaches to managing IT are not transformed, they will continue to remain locked. The only successful strategy deployed by many organization is the squeeze their IT services providers for incremental discounts. A recent Gartner report stated that "on average in 2012, 35% of IT spending was on applications, 55% was on infrastructure and the remaining 10% was on IT management, finance and administration activities. 50% of an application's cost across its lifecycle is support and maintenance. IT leaders are faced with a paradox of shrinking budgets but a business imperative to grow. Given that fewer than 20% of organizations have an application services strategy, ASM suddenly becomes a big budgetary blind spot
HCL has created a radical new approach. It has combines various industry-leading best practices, including LEAN process Management Principles with focused automation and unstained knowledge reuse for the support and maintenance of applications while creating incremental value for business every day with guaranteed cost reductions: Alternate Applications Support and Maintenance or ALT ASM.
In summary ALT ASM seeks to:
1) understand the cause of ‘work’ in Application Support
2) Stop the ‘work’ arising in the first instance
3) Manage the ‘work’ more effectively when it has arisen
ALT ASM engagements are substantially forward-looking. They continuously monitor applications to identify functional and technical re-engineering requirements. Dynamic business demand for enhanced functionality of legacy applications is met through staffing flexibility. Reduced It complexity is attained by identify redundant applications for decommissioning. The application portfolio is kept lean and total cost of ownership (TCO) is kept low.
More importantly, ALT ASM includes the monitoring of both IT key performance indicators and business process KPIs. Using business process and application visibility tools and process watch dashboards, ALT ASM is able to align IT systems to business processes. ALT ASM propagates alternative thinking of proactively reducing incidents and putting business process first.
Almost everything a business does is driven by the processes. In order to stay competitive in today's business environment, it is essential to design and improve your business processes.
Better visibility into your processes or a larger enterprise-wide digital transformation initiative can be achieved with SoftwareAG's ARIS Architect and Designer product. ARIS Architect and Designer product allow you to design and model your business processes, improve the performance of your digital business, and align Business and IT while maintaining a single source of truth.
Managed IT Services Pricing Models And Strategies Powerpoint Presentation SlidesSlideTeam
"You can download this product from SlideTeam.net"
Presenting Managed IT Services Pricing Models And Strategies PowerPoint Presentation Slides. This complete PPT deck is made up of 40 professional slides. You can convert and save this PowerPoint slideshow in formats like PDF, PNG, and JPG. All the templates are fully customizable. You can edit text, fonts, patterns, colors, and background within seconds. Also, this PPT template deck is compatible with Google Slides. You can view this presentation on standard and widescreen formats. https://bit.ly/36YwIxW
Service Catalog & Request Fulfillment, the cornerstone of IT Service ManagementBMC Software
As your business embraces user self-service, so must your IT department embrace the service catalog. Service catalogs have become the heart of IT management as IT organizations seek to reduce call volume and improve user satisfaction. When embraced by IT and the business, a service catalog provides your customers a comprehensive view of your IT and business service offerings and enables the user to more seamlessly interact with IT and other aspects of the business. BMC Software and Pink Elephant review how adopting ITIL best practices for service catalog management and request fulfillment can help your IT organization
When two large companies merge, it often takes a while – years in some cases – before processes get redesigned to span all departments, and the new organization settles into a lean and profitable machine. And the same is true of OSS/BSS. These systems have been designed for two different purposes: to keep the network operational and to keep it profitable. But today’s demanding networks need the functions of both of these systems to work together, and to work across the varying lifecycles of products and services.
Application Management and Support - Shared Services Featuring the Pay Per Ti...Jade Global
Today, a variety of IT applications support business processes, giving it a competitive edge. Hence, applications that drive these businesses need to evolve just as rapidly while ensuring uninterrupted service to the customer.
Systems and applications do stabilize over time, but they still need maintenance. However, maintaining support resources and infrastructure can be costly and time consuming. Several models have emerged in the recent past that try and address this challenge, however a majority of them have had little success, frustrating service providers and customers alike and leaving neither of them satisfied.
In this webinar, our Consulting Director, Manoj Machiwal, will talk about how to address these challenges using the Pay per Ticket Model, a phase of new revolution in the AMS industry.
Get the maximum from your application support and maintenance investments and take a look at the future road map of AMS.
Know more, please visit: http://www.jadeglobal.com/
Integrating IT assets is a problem that all companies face. The challenge is not just in integrating the technologies, it is in selecting the right tools for the job. In this webinar, Ken Vollmer, Principal Analyst, Forrester Research, will talk about the evolution of how companies approach integration and the factors that should be considered in selecting a tool. Use this on demand email to promote the webinar. Visit us at http://www.softwareag.com Become part of our growing community: Facebook: http://www.facebook.com/softwareag Twitter: http://www.twitter.com/softwareag LinkedIn: http://www.linkedin.com/company/software-ag YouTube: http://www.youtube.com/softwareag
Perform a Cloud Readiness Assessment for Your Own CompanyAmazon Web Services
In this session you will get an understanding how to evaluate your company's or applications' cloud readiness. We will cover aspects such as workload and data categorisation, automation levels, design for failure and cost-optimised architectures. We will be looking at typical application evolution paths from tightly coupled physical systems, in some cases through virtualisation, to cloud-native, or cloud-ready, loosely coupled, distributed and automated solutions.
Establishing a Business Process Management Center of Excellence - Impact 2012Prolifics
Speakers: Benny Higdon, Prolifics; Howard Webb, Prolifics
Description: Introducing a new technology in to an enterprise may be fraught with problems. The same is true for Business Process Management (BPM), which are both a technology and a methodology. Establishing a properly staffed and empowered Center of Excellence (CoE) can improve your chances of success. Learn the considerations for setting up a BPM CoE in your organization.
Should you establish a Service Management Office (SMO) - ITSM Academy WebinarITSM Academy, Inc.
Similar to a project management office, the SMO centralizes the oversight and integration of service management processes to ensure the alignment and effective and efficient outcomes of service delivery and support. In this session, Jayne Groll will provide a practical overview of the concepts, benefits, opportunities, and threats associated with developing a SMO, regardless of an organization’s size, industry, or scope. And since a successful SMO is built on roles and responsibilities, Jayne will also share tips for identifying, combining, assigning, and managing key roles
This session provides a holistic framework that can be used to build a Cloud Strategy that is tailor made for your organization. The Cloud Strategy covers 7 different perspectives of consideration including Business, People, Process, Operations, Security, Maturity, and Platform.
Information technology in global arena & enterprise resource planningSubhajit Bhattacharya
INFORMATION TECHNOLOGY IN GLOBAL ARENA & ENTERPRISE RESOURCE PLANNING. This presentation describes how Information Technology is overall impacting the global arena and how IT is necessary for the organizational growth in the competitive global market.
Role of ERP and how ERP can further enables business to run more productively and bring organization wide growth. The key constraints to identify the correct ERP suite. An overview of ERP project management and ERP as a service on cloud infrastructure.
Almost everything a business does is driven by the processes. In order to stay competitive in today's business environment, it is essential to design and improve your business processes.
Better visibility into your processes or a larger enterprise-wide digital transformation initiative can be achieved with SoftwareAG's ARIS Architect and Designer product. ARIS Architect and Designer product allow you to design and model your business processes, improve the performance of your digital business, and align Business and IT while maintaining a single source of truth.
Managed IT Services Pricing Models And Strategies Powerpoint Presentation SlidesSlideTeam
"You can download this product from SlideTeam.net"
Presenting Managed IT Services Pricing Models And Strategies PowerPoint Presentation Slides. This complete PPT deck is made up of 40 professional slides. You can convert and save this PowerPoint slideshow in formats like PDF, PNG, and JPG. All the templates are fully customizable. You can edit text, fonts, patterns, colors, and background within seconds. Also, this PPT template deck is compatible with Google Slides. You can view this presentation on standard and widescreen formats. https://bit.ly/36YwIxW
Service Catalog & Request Fulfillment, the cornerstone of IT Service ManagementBMC Software
As your business embraces user self-service, so must your IT department embrace the service catalog. Service catalogs have become the heart of IT management as IT organizations seek to reduce call volume and improve user satisfaction. When embraced by IT and the business, a service catalog provides your customers a comprehensive view of your IT and business service offerings and enables the user to more seamlessly interact with IT and other aspects of the business. BMC Software and Pink Elephant review how adopting ITIL best practices for service catalog management and request fulfillment can help your IT organization
When two large companies merge, it often takes a while – years in some cases – before processes get redesigned to span all departments, and the new organization settles into a lean and profitable machine. And the same is true of OSS/BSS. These systems have been designed for two different purposes: to keep the network operational and to keep it profitable. But today’s demanding networks need the functions of both of these systems to work together, and to work across the varying lifecycles of products and services.
Application Management and Support - Shared Services Featuring the Pay Per Ti...Jade Global
Today, a variety of IT applications support business processes, giving it a competitive edge. Hence, applications that drive these businesses need to evolve just as rapidly while ensuring uninterrupted service to the customer.
Systems and applications do stabilize over time, but they still need maintenance. However, maintaining support resources and infrastructure can be costly and time consuming. Several models have emerged in the recent past that try and address this challenge, however a majority of them have had little success, frustrating service providers and customers alike and leaving neither of them satisfied.
In this webinar, our Consulting Director, Manoj Machiwal, will talk about how to address these challenges using the Pay per Ticket Model, a phase of new revolution in the AMS industry.
Get the maximum from your application support and maintenance investments and take a look at the future road map of AMS.
Know more, please visit: http://www.jadeglobal.com/
Integrating IT assets is a problem that all companies face. The challenge is not just in integrating the technologies, it is in selecting the right tools for the job. In this webinar, Ken Vollmer, Principal Analyst, Forrester Research, will talk about the evolution of how companies approach integration and the factors that should be considered in selecting a tool. Use this on demand email to promote the webinar. Visit us at http://www.softwareag.com Become part of our growing community: Facebook: http://www.facebook.com/softwareag Twitter: http://www.twitter.com/softwareag LinkedIn: http://www.linkedin.com/company/software-ag YouTube: http://www.youtube.com/softwareag
Perform a Cloud Readiness Assessment for Your Own CompanyAmazon Web Services
In this session you will get an understanding how to evaluate your company's or applications' cloud readiness. We will cover aspects such as workload and data categorisation, automation levels, design for failure and cost-optimised architectures. We will be looking at typical application evolution paths from tightly coupled physical systems, in some cases through virtualisation, to cloud-native, or cloud-ready, loosely coupled, distributed and automated solutions.
Establishing a Business Process Management Center of Excellence - Impact 2012Prolifics
Speakers: Benny Higdon, Prolifics; Howard Webb, Prolifics
Description: Introducing a new technology in to an enterprise may be fraught with problems. The same is true for Business Process Management (BPM), which are both a technology and a methodology. Establishing a properly staffed and empowered Center of Excellence (CoE) can improve your chances of success. Learn the considerations for setting up a BPM CoE in your organization.
Should you establish a Service Management Office (SMO) - ITSM Academy WebinarITSM Academy, Inc.
Similar to a project management office, the SMO centralizes the oversight and integration of service management processes to ensure the alignment and effective and efficient outcomes of service delivery and support. In this session, Jayne Groll will provide a practical overview of the concepts, benefits, opportunities, and threats associated with developing a SMO, regardless of an organization’s size, industry, or scope. And since a successful SMO is built on roles and responsibilities, Jayne will also share tips for identifying, combining, assigning, and managing key roles
This session provides a holistic framework that can be used to build a Cloud Strategy that is tailor made for your organization. The Cloud Strategy covers 7 different perspectives of consideration including Business, People, Process, Operations, Security, Maturity, and Platform.
Information technology in global arena & enterprise resource planningSubhajit Bhattacharya
INFORMATION TECHNOLOGY IN GLOBAL ARENA & ENTERPRISE RESOURCE PLANNING. This presentation describes how Information Technology is overall impacting the global arena and how IT is necessary for the organizational growth in the competitive global market.
Role of ERP and how ERP can further enables business to run more productively and bring organization wide growth. The key constraints to identify the correct ERP suite. An overview of ERP project management and ERP as a service on cloud infrastructure.
Want to learn more about Activity Based Costing or IT Delivery Services Transparency? Would you like to better communicate your Technology Services Catalog or articulate proper chargebacks to the Business Stakeholders?
The business demands Best-in-Class Solutions with a secure and reliable infrastructures with no downtime, and now the CIO can provide a portal view with comprehensive Business Unit Dashboards and custom Data Analytics reporting.
NOPERU is the organization responsible for handing out permits those Corporations, Governments and Citizens need for activities that involve emissions – such as CO2 – or resource usage – such as energy or water. NOPERU works with 100s users from five locations. A transition is taking place from decentralized data, Oracle Forms based application silos, paper based documents, data oriented, outdated character based user interfaces to a future steeped in Fusion Middleware, with modern pages (ADF), a serviced oriented architecture with decoupling and reuse (SOA Suite and OSB), a unified database (Oracle 11gR2) and digital documents (WebCenter Content). Then a business process approach (BPM Suite & BAM) that aligns with how business really works and provides operational insight to managers. This presentation tells the story of the transition, functional, architectural and technological aspects.
Reality: You are using SaaS every day. Through the Internet boom technology advancement of the communications grid positioned us in the new millennium to introduce complex technologies as Web-based services:
Digital Transformation is a systematic approach to your business that applies digital thinking across everything you do, from the front office to the back office. It’s what we refer to as “The New Business of Digital.” The quote you see summarizes that thought well.
This is an important distinction because not only is there a direct, tangible improvement to the specific area that you change through digital technology and digital thinking—for example, replacing hard-copy documents with electronic documents—but there is a significant value-add as well.
Through Digital Transformation, your processes are:
Optimized through intelligent information capture
Streamlined by removing time-consuming steps
Replaced with a new, simpler way of doing things
To learn how it impacts business download the presentation or visit our website http://www.fujixerox.com.au/products/
A Case of Fusion Middleware (IlOUG Tech Days, July 2013)Lucas Jellema
NOPERU is the organization responsible for handing out permits that Corporations, Governments and Citizens need for activities that involve emissions -such as CO2 - or resource usage - such as energy or water. NOPERU works with 100s users from five locations. A transition is taking place from decentralized data, Oracle Forms based application silos, paper based documents, data oriented, outdated character based user interfaces to a future steeped in Fusion Middleware, with modern pages (ADF), a serviced oriented architecture with decoupling and reuse (SOA Suite and OSB), a unified database (Oracle 11gR2) and digital documents (WebCenter Content). Then a business process approach (BPM Suite & BAM) that aligns with how business really works and provides operational insight to managers. This presentation tells the story of the transition, functional, architectural and technological aspects.
Key findings among the industry analysts: “Managing telecom & cloud expenses is a complex task that requires knowledge about multiple technical an business topics”.
Widecoup Billing has helped our clients to find savings primarily through the reduction on the different types of telco consumption and communications expenditures
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Key Considerations While Rolling Out Denodo PlatformDenodo
Watch full webinar here: https://bit.ly/3zaPGLO
Our approach for data virtualization advisory takes the following 3 dimensions/areas into consideration:
- Technology / Architecture
- Business User Groups (your clients)
- IT Organization
To deliver quick results, Q-PERIOR uses a multitude of accelerators in predefined topics within these three dimensions. In our presentation we will elaborate on client examples why such an exercise makes sense before rolling out Denodo and what kind of risks you can avoid doing so.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
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Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
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https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
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💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
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👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
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UI automation Introduction,
UI automation Sample
Desktop automation flow
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Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
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A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
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From Daily Decisions to Bottom Line: Connecting Product Work to Revenue by VP...
The IT Chargeback Journey
1. ITFMA Conference - Pittsburgh
The IT Chargeback Journey
Pete Hidalgo
April 15, 2015
2. Page 1
Table of contents
► The big picture
► The ITFM and Chargeback Journey
► Chargeback definition
► Benefits
► Key concepts
► Guiding principles
► Model types and maturity
► Automation
► Q & A
► References
3. Page 2
The big picture…
EY IT financial management framework – based on ITIL and leading practices
► Includes core internal
FinancialManagement
processes:
1. Financial planning/budgeting,
analysis, and reporting
2. Asset management – HW and
SW
3. Invoice management
4. Supplier/vendor and contract
management
5. Purchase request and invoice
management
6. Telecom expense management
7. IT service costing and
benchmarking
8. IT allocation /
showback/chargeback
9. Bill of IT and associated usage
reporting
EY IT financial
management
framework
► And accounts forkey
externalinterdependent
processes
1. Service definition and catalog
management
2. Service request fulfillment and
demand management
3. Service level management
4. Capacity management
5. Availability management
6. Service asset and
configuration management
7. Release and deployment
management
8. Service owners / Business
Relationship Management
9. Project portfolio management
Business
strategy/
goals
Output/
benefits
1. Cost
transparency
2. Consumption
efficiency
3. Cost reduction
4. Customer
satisfaction
4. Page 3
Step 1.
Step 2.
Step 3
Step 4
Step 5 & 6
Continuous
The EY ITFM Journey
Provides a clear path to support the delivery of cost effective services to the business…
Step 1
Current State
Assessment
Step 2
Service
Definition
Step 3
Unit Service
Costing
Step 4
Metrics &
Reporting
Step 5
Chargeback
Model
Step 6
Bill of IT
Transparency
Cost
efficiency
Customer
Satisfaction
Today’s Focus
5. Page 4
The chargeback journey
Below is a recent real world example of one company’s journey…
6. Page 5
The chargeback journey
Below is a recent real world example of one company’s journey…
7. Page 6
What is chargeback?
- 6
A process by which an I.T. organization
can recover its costs of providing services
to its customers
8. Page 7
Why implement chargeback?
► To understand the true costs of providing IT services
► To educate IT customers on the value of the IT services
that are being provided
► As a tool to improve operating efficiencies and lower
costs
► To enable customers to manage their own consumption
of services and associated costs
- 7
9. Page 8
Benefits of implementing chargeback
Significantly outweighs the costs…
1. Reduce spend/costs
2. More effective IT spending
3. Key component of ITIL Financial Management
4. Improve demand & expense forecasting for the IT organization and
its customers
10. Page 9
The chargeback journey
Implementing chargeback is an evolutionary process vs. “big bang”…
Usage
reporting
Showback
(Usage + $)
Chargeback
Time
Chargeback
process
11. Page 10
Usage Reporting Example
Customers need to first understand their consumption and costs before being charged…
► Highest benefit and maturity level is to produce monthly for each service via
self-service on an automated platform
Automated Example - Apptio
Manual Example - Excel
13. Page 12
Chargeback data requirements
To chargeback on a unit cost basis, unit consumption and cost data is needed…
Datagranularity
Level of effort
14. Page 13
Chargeback data requirements
Data quality must be quantitatively assessed in order to measure improvement…
Data quality will determine the maturity level of the desired model…
15. Page 14
Service definition – first year example
Must first define services in order to allocate costs….below is one actual example
Portfolios and services can be expanded as process maturity increases…
IT services can be initially organized into five portfolios comprised of 20 individual services
Site & Business
Enablement
• On-site support for infrastructure and
applications
Application Delivery &
Support
• ADM (Development, maintenance,
support and Software of applications)
• Infra - Data Center & Connectivity
• Infra - Compute / Servers
• Infra - Storage & Back-Up
• Databases, Java, .NET, tools
• Integration
Staffing Enablement
• Identity and End User Computing
• Service desk and support
• Conferencing (video, WebEx)
• Email & collaboration tools
• Telephones
• Network connectivity
• Mobility
Enterprise Support
Services
• Security Risk Management
• Strategy, Architecture, Governance,
and PMO
• Industry and innovation - TES
• BI, Data warehouse
• Business Resources, Human Resources
New Initiatives
• New projects requested from GIS by
the business
Global Infra
Services
PMO
Security Risk
Management
IT
App Delivery &
Support
Site Support
Strategy, Arch.,
Governance
Finance
Human Resources
16. Page 15
Service definition – first year example
Also creates a foundation for the development of a complete service catalog…
# Service Name Service Owner Service Description
Staffing Enablement
1 Identity and End User Computing TBD
Lifecycle management of End-User devices including procurement, imaging & patching, installation of software, identity
and access management services, desk-side support and printers.
2 Service desk and support TBD Resolution (incl. management) of service requests, incidents and tickets raised by end-users to the help desk.
3 Conferencing (video, webex) TBD
Solutions enabling employees to organize meetings, conferences & other sessions using Telepresence, Webex, video,
& enterprise audio conferencing, network based broadcast services, Video@work, and enterprise supported digital
signage (facility messaging).
4 Email & collaboration tools TBD
Enabling communication and collaboration across the organization through email, messaging, and enterprise
collaboration tools.
5 Telephones TBD
Telephony services including Call Center, voice mail, extension licensing & fees, softphone (IPC and Jabber) and
associated equipment and maintenance (Excludes circuit & toll charges and equipment such as phones sets &
headsets installed at sites).
6 Network connectivity TBD
Data and voice networks per site that allow secure connectivity across the enterprise (Data Centre related networks
costs are captured separately).
7 Mobility TBD
Mobile device security and management, mobile application standards, and corporate owned cell phone
management/standards.
Application Delivery & Support
8
ADM (Development,
maintenance, support &
Software)
TBD
Application development, maintenance and support activities for all applications including software purchased from 3rd
party vendors.
9
Infrastructure - Data Center &
Connectivity
TBD Management of Data Centers including equipment, labor involved and network connectivity in providing the service.
10
Infrastructure - Compute /
Servers
TBD
Management of Servers and Operating Systems including equipment and labor involved in providing the service,
directly for business applications and other GIS key services (Mainframes, Windows, Linux, Unix).
11
Infrastructure - Storage & Back-
Up
TBD
Management of Storage & Back-Up including equipment and labor involved in providing the service, directly for
business applications and other GIS key services (NAS, SAN).
12 Databases, Java, .net, tools TBD
Primarily; Database platforms, licenses and the labor associated for DB maintenance (Oracle, MySQL, DB2, SQL
Server). Supporting JAVA type tools for ad-hoc support and development.
13 Integration TBD
Services related to developing, supporting and maintaining the integration functionality across the multitude of
enterprise and local applications.
17. Page 16
Services and chargeback model progression
From high level bundle in year 1 to individual services and per unit charging in year 3…
Staff Enablement
Service 2015 2016 2017
• Identity and End User
Computing
• Primarily bundled and allocated by total
headcount
• allocated by total headcount
• Bundled and allocated to the BU’s by
the #of assigned PC’s
• Standardized methodology
• Set-up structure to move to Service
Based Costing in 2017
• By # of PC’s per BU
• Service desk and
support
• By ticket-count per BU
• Conferencing (audio,
video, web)
• By # of telepresence locations per BU
• Email and
collaboration tools
• By # of Email accounts per BU
• Telephones • By # of extensions per BU
• Network connectivity • Direct cost per Site / BU
• Mobility • By # of Mobile Devices per BU
18. Page 17
Guiding principles for model design
Consistency
Effort
Fairness
Transparency
► Are IT chargeback methods aligned with cost allocation and
profitability measurement used throughout the organization?
► How much effort (e.g., data collection, transformation,
calculation, reconciliation, and billing) is appropriate and is it in
keeping with the value provided?
► To what degree should chargeback be based on actual
consumption versus an estimated allocation?
► What costs should be included/excluded?
► What insight should customers have into how IT manages IT—
including which costs are fixed and which are variable?
► What behaviors, if any, should chargeback drive (e.g. reduced
consumption, investment in new products, incentives to move
users from old technologies, etc.)?
Influence
Chargeback guiding principles and considerations
Consistency
Effort
Fairness
Transparency
Influence
19. Page 18
Chargeback models
Not one size fits all…
HighImplementation complexity
Low
High
Businessbenefitsandtransparency
Resource-
based
allocations
Differentiated
service levels
and pricing
1. Overhead
allocation
2. Flat fee
6. External
pricing
7. Value based
pricing
4. Incentive
based
3. Resource
consumption
based
5. Service based
Service
pricing
Resourced-Based Allocations distributes
costs through allocations or simple
consumption estimates
Service Pricing measures specific
consumption and drives behavior through
tiered services and prices (e.g. incentives for
off-peak usage)
Differentiated Service Levels and Pricing
reflects a more market-based approach to
cost recovery
High
20. Page 19
Chargeback model details
IT chargeback
methodology
Methodology description
1. Overhead allocation
2. Flat fee
4. Incentive based
5. Service based
6. External pricing
7. Value based pricing
3. Resource consumption
based
► IT costs are allocated to LOBs as a corporate overhead cost based on a simple driver not
directly related to resource consumption (e.g. revenue, asset balance, etc.)
► Fixed annual cost negotiated with BUs; normally based on a “crude” estimate of resource
consumption
► IT charges are manipulated to drive specific behavior (e.g., lower charges to influence use of
network or servers during off-peak times)
► IT service charges to BUs are based on consumption of specific activities; quality and
availability of services are explicitly defined, service “choice” provided for key products
► IT service fees are based on market (external) prices; products offered are comparable to
those available in the marketplace
► IT service fees are based on perceived value delivered to LOBs (e.g., business value
created, customer satisfaction, timely delivery of new financial products)
► IT costs are allocated based on specific unit of resource consumed (e.g., number of
dedicated servers, network ports, etc.)
Cost
Awareness
Cost
Measurement
Effort
Costsand
Complexity
Cost
Management
Effort
0. No chargeback ► IT costs are not charged back
= Low = Medium = HighKEY:
21. Page 20
Chargeback model maturity
Used to understand where you are, where you want to go, and to measure progress…
High
BenefitsandTransparency
Low
High
2
Flat Fee
3 Consumption
Based
4
Incentive
Based
5
Service Based
6
External Pricing
7
Value Based
Pricing
Implementation Complexity
1 Overhead
Allocation
Current State
Target State
22. Page 21
Chargeback model maturity criteria
# Maturity Level Maturity Description
1 Overhead Allocation
• IT costs are allocated to Business Partners (BUs) as a corporate overhead cost
based on a simple driver not directly related to resource consumption (e.g.
revenue, asset balance, etc.)
2 Flat Fee
• Fixed annual cost negotiated with BUs; normally based on a “crude” estimate of
resource consumption
3 Resource Based Consumption
• IT costs are allocated based on specific unit of resource consumed (e.g., number
of dedicated servers, network ports, etc.)
4 Incentive Based
• IT charges are manipulated to drive specific behavior (e.g., lower charges to
influence use of network or servers during off-peak times)
5 Service Based
• IT service charges to BUs are based on consumption of specific activities; quality
and availability of services are explicitly defined, service “choice” provided for key
products
6 External Pricing
• IT service fees are based on market (external) prices; products offered are
comparable to those available in the marketplace
7 Value Based Pricing
• IT service fees are based on perceived value delivered to BUs (e.g., business
value created, customer satisfaction, timely delivery of new financial products)
26. Page 25
Recent client success stories
Client industry Client need EY value delivered
Media and
entertainment
A large global media conglomerate
needed help establishing ITFM
processes and creating an
Enterprise Technology service
catalog for its newly established IT
shared services organization
► Designed a comprehensive, business facing IT service catalog that included service
performance levels for each service
► Developed a monthly service usage-reporting process and reports for all IT services
► Created an IT-specific chart of accounts to align costs with services
► Built a service-cost model and calculated actual unit service costs
► Designed a service-cost allocation model covering 26 services and seven business
divisions
Advertising A large global advertising firm
needed to assess their ITFM process
maturity and develop a detailed
plan for improvement
► Determined current and target ITFM maturity levels
► Developed a detailed gap analysis
► Created 16 improvement recommendations
► Designed a comprehensive ITFM data and system-end state architecture
► Provided an executable and prioritized recommendations roadmap
Pharmaceutical A large global pharmaceutical
company needed to improve IT cost
transparency and develop an end-
state ITFM data and system
architecture
► Assessed the current state of ITFM processes within its Information Technology
Shared Services (ITSS) organization
► Developed unit service-cost model and benchmarked to the market, identifying
millions in potential annual savings
► Designed ITFM data and system-end state architecture
Broadcasting An international television
broadcast network needed to
address its fragmented ITFM
processes, lack of cost
transparency, no service definition
nor usage reporting, and an
ineffective cost allocation process
► Performed a current state cost and operational assessment of existing IT function
and ITFM processes
► Designed, developed and supported the launch of a comprehensive IT-service
catalog for the newly formed IT shared services organization
► Defined and documented key ITFM processes
► Developed an IT service-cost model
► Identified significant potential reductions in annual IT operating costs
27. Page 26
Peter Hidalgo, Jr
Senior Manager
IT Transformation
Advisory Services
Ernst & Young LLP
5 Times Square
New York, NY 10036-6530,
United States of America
Pete.Hidalgo@ey.com
Mobile: 973-223-5616
Education
West Point - USMA
BS – Engineering
Columbia University
MBA
Certification(s)
PMP
ITIL Financial Management
► Senior Manager with over 20 years of experience in I.T. Financial Management, Telecom and I.T. infrastructure,
Cost Optimization, Program Management, and I.T. Shared Services Transformation.
► Deep industry experience in managing and optimizing I.T. costs. Previous responsibilities included serving as the
Global I.T. Financial Manager for a Fortune 100 company, where he managed an annual operating budget of over
$100 million. In that role he also developed and implemented an ITIL based service costing and chargeback
process, resulting in improved client satisfaction and major, recurring cost savings.
► Currently serves as the I.T. Financial Management Service Leader within Ernst & Young’s IT Advisory practice
Relevant experience
► Assisted a Fortune 50 global manufacturing client with redesigning their current IT allocation model and
processes for over $1 billion in annual spend
► Advised a Fortune 50 pharmaceutical client with improving their IT financial management processes, cost
transparency, data management, chargeback model redesign, service owner framework, and automation
► Advised and assisted a leading media and entertainment company to transform their IT operations into a shared
services model encompassing 11 major service domains. Also assisted in the development of a data center
strategy, a WAN architecture review, and a detailed IT service cost analysis, to include the development of a
service catalog, and a chargeback model.
► Assisted in an IT infrastructure (voice, data, and data center) strategic assessment and financial analysis for a
Fortune 500 corporation, which resulted in identifying the strategies to improve network and data center
performance and availability, in addition to saving $32M - $53M over three years in IT operating expenses.
► Supported an IT Cost Optimization study for the premium spirits and wine supplier in the U.S., which addressed
their telecom and infrastructure spend. Identified annual savings of 10% to 19%.
► Advised in the strategic assessment of the voice and data networks for a Fortune 500 high tech manufacturing
firm, which resulted in a new technology direction (VOIP) and Identified over $9M in annual savings.
► Assisted in performing an IT Operations strategic assessment for a Fortune 100 manufacturing corporation,
focusing on data center consolidation. Developed data center consolidation and disaster recovery strategies, in
addition to Identifying over $5M in annual savings.
► Advised a leading medical device manufacturing company in the evaluation of their outsourced infrastructure
service contracts, resulting in overall savings of $5M - $6M, or 35% - 45%.
► Assisted a Fortune 100 consumer staples company with the assessment of their wireless telecom services
contracts, resulting in overall savings of $6M - $9M, or 45% - 55%.