Today’s CIOs are under more pressure than ever before mature their Financial Management strategy and methods to:
Demonstrate IT spending value to business goals and initiatives in understandable business terms.
Deliver greater cost transparency that enables line of business (LOB) owners to determine IT spending based on value and their usage of IT services and capabilities.
Quickly provide cost justification and benchmarks that illustrate lower costs and IT service and capability improvements to LOB organizations.
Effectively managing today’s complex IT organization, determining its related business value, and providing the cost transparency demanded by LOB owners is no longer achievable using spreadsheets. Financial management of IT services and capabilities requires a new level of financial management maturity that delivers full cost accountability and transparency based on LOB usage of IT services and capabilities.
The Cost Optimization Service (COp-S™) Solution
The KEDARit Cost Optimization Service Solution delivers the Financial Management for IT Services approach presented in the IT Infrastructure Library® Version 3 (ITIL® V3) framework. Typically, in less than 90-days the COp-S™ solution delivers a comprehensive financial model that captures the cost, interdependencies, and demand of IT functions to deliver IT service and capabilities to LOB organizations.
COp-S™ enables IT organizations to quickly relate technology capabilities and existing information to LOB goals to provide a single financial model and data repository for planning, transparency, and control of IT spending. Allowing the CIO and LOB owners to collaborate about the cost impact (reduction or increase) of new technology investments, LOB organization utilization of IT services and capabilities, in-sourcing vs. out-sourcing solution options, operational and compliance IT required activities, etc., based on current budgeted or projected cost facts.
- An automated solution for IT budgeting and cost forecasting
- Unbundles IT infrastructure, capabilities, and spending into IT services
- A financial cost model that bridges the gap between business value and IT spending
- Leverages IT organizational, inventory and expense data, and other financial information for fact-based decision making
The COp-S™ methodology integrates best practices in:
- Quickly perform detail “what-if” budget analysis
- Increase transparency of the budgeting process
- Identify IT service and capability cost drivers and unit cost
- Deliver greater demand management control to LOB owners
- Understand both total cost of ownership (TCO) and activity-based costing (ABC) budgeting impact
- Improved LOB owners and IT managers ability to collaborate about cost reduction or optimization solutions
How We Define Customer Success
Customers can immediately perform cost optimization and reduction activities.
Customers achieve 3% to 8% reduction in IT spending in the first year.
Engagement yields a 100% or greater ROI.
Engagement is completed in 90-days or less.Tags:ABC, chargeback, COp-S, Cost Allocation, Cost Optimization, Cost Reduction, Evolution of IT Financial Management, Financial Management for IT Service, IT Financial Managemen, IT Financial Management, IT Service Costing, ITFM, ITIL, Showback, SUM, TCO, Total Cost of Ownership