The over use of spreadsheets by IT organizations to guide their financial operations, reduces IT cost transparency and service usage accountability.
Traditional spreadsheet-based IT cost allocation methods cannot provide a 360° view of the alignment of business unit usage and cost of IT services. The spreadsheet IT cost allocation methods typically fall into three camps:
- Resource Usage – gained by using time-sheet and/or capacity utilization data; this is time consuming and requires some effort to gather and formalize data from multiple sources.
- Blended IT Cost Allocation – tailored for specific functions; this may come at a cost to map allocated costs to IT budgets and the General Ledger.
- Moderate Spreadsheet Automation – implemented to allocate IT expenditures; this can be labor intensive for Finance Department Controllers.
The above spreadsheet-based methods often produce management reports that are insufficient for business leaders to improve their financial stewardship of IT services and cost. The reports simply don’t provide enough business relevant detail to substantiate IT cost allocations.
Watch this 4-minute video to learn how other companies are modernizing their IT cost allocation methods, and eliminating their dependence on spreadsheets.
To find out how to implement effective IT cost transparency from one of our Senior IT Financial Specialist, click “Save the Date”. Or, call (972) 317-3577 to inquire.
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