A Practitioner s Framework for IT Financial Management

Transcription

1 Now you know. 1

2 A Practitioner s Framework for IT Financial Management This best practice session reviews a framework that has been developed by some of the best practitioners within the industry, and provides a tactical roadmap for managing, executing, and maturing your IT Finance operation.

3 Speakers 3

4 2016 What is it? A Best Practice tactical roadmap for IT finance operation based on the experience of a large community of practitioner s Focused on data and processes Who is it for? New practitioner s needing guidance Existing practitioner s examining alternatives or validating existing approaches Informing senior leadership How has it evolved? Battlefield level - Over a dozen years of direct engagements with over 200 companies Patterns and best practices emerged Contributors are Industry Practitioners IT Finance Directors & Managers IT Controllers IT Finance Analysts 4

5 IT FM Data & Process Flow Services Services Cost Center Account Additional GL Fields (1-5) GL View (Technical) Service (Compute, Servers, Storage, AD, Desktop, Laptop) Consumers (100%) Applications Projects Individuals (End User Compute) Consumer Applications (Business) Apps grouped and allocated to Business Services Business Service Metrics 5

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7 WHY IMPLEMENT AN ITFM MODEL - Aligns IT costs to Business decision - Process automation and data consistency - Reporting that is actionable and enables decisions - Transparency into cost drivers and utilization trends - Framework to compare across industry - Identifies value vs. non-value activities - Changes the conversation from cost management to Business impact 7

8 To be Successful Accept the Fact that, ITFM is a journey; Be patient Every Company is different; Modify the framework to work for you Change is difficult; Help educate and inform To some, transparency it good; To other s transparency it s an development opportunity Data gets better over time; Improve as you go Work with what you have; Change over time 8

9 To be Successful Set Guiding Principles: Keep it simple; Do what s right Encourage participation from IT, Finance, Business Partners Pick your battles; Win the war Automate as much as possible Where a non-optimal solution is necessary, commit to optimize in future release Focus on controls, data validation, and transparency Engage Internal Audit early; They will be your friend 9

10 Next Steps When Is The Right Time? Characteristics To Look For In The Solution: Characteristics To Look For In The Vendor: Excel has been stretched beyond it s capabilities ITFM direction and strategy has been set Data is available Management commitment is in place The Givens: Ease of use; User friendly; Quality Reporting/Graphics Primary function vs. companion product Exceptional at the blocking and tackling Flexibility Believes more in client relationship than the sale An ITFM expert Has an opinion Committed to the success of the implementation 10

11 Financial Systems Statistical Systems THE VISION (Retail example) Business Systems Accounts Payable General Ledger Asset Mgt Project Mgt Membership Inventory Technology Logistics Human Resources SERVICE PROVIDER VIEW Cost/MIP Cost/Delivery Cost/FTE Activity View Applications Programs Services Business Services VIEW Handle Returns Process Orders Employee Onboarding Business Unit Internet Stores 11

12 REPORTING MATRIX GL Account Attributes Paid, accruals Categories Work Task Activities SDLC tasks Hours, role on project Investment Number Attributes Project, application, service Business Owner Statistical Data # of devices # of tickets Labor Information Title, grade Pay PO & Vendor Information Terms, conditions Purchases, cost 12

13 REPORTING FOCUS BY SEGMENT Variance analysis CapX, OpeX Quarterly, annual statements Return on investment Business value P&L impacts Portfolio, project reporting Actual utilization and trends Consumer drivers Cost per application, project, service Metrics, usage Industry benchmark 13

14 REPORTING (directional) Entity View Total Company ABC Business Unit View Internet Stores Business Services View Process Order Handle Returns Handle Returns Employee Onboarding Applications Services Activity View Sales System Application View Technology Logistics Service Provider View CPU Storage Ship In Ship Out Costs Drivers Costs Drivers Transactional Costs and Drivers Labor Non-Labor Packages 1 Day Delivery 14

15 LESSONS LEARNED OVER THE YEARS The solution must deliver value on Day 1 Establish a diverse Steering Committee (even if it kills you) Avoid re-hashing decisions Understand the organization s desire & ability to change Don t under estimate the organization s culture 1 15