Why Modernize Your IT Financial Management (ITFM) Tools?

Why Modernize Your IT Financial Management (ITFM) Tools?

Learn How CIOs Are Modernizing Their IT Financial Management (ITFM) Tools

It is no surprise that today’s CIOs are continually being challenged to reduce costs while improving IT service levels, and at the same time being asked to devise technology innovations for a business advantage. This means getting a handle on IT expenditures is critical, not only to meet these objectives, but also for right-sizing IT service delivery and underpinning resources to improve business outcomes.

Managing the business of technology is increasingly complex. Today this requires that IT organizations to create a Roadmap of how to map both technology capabilities (commonly called “IT services”) and related expenditures to business objectives.

ITFM Modernization Roadmap

In order for an IT organization to do this, they must be able to view and present IT expenditures in business terms, that focus on the IT services necessary to achieve business objectives, by monetizing the discreet cost and consumption of IT services per each business unit customer. This shift in expectation of what is effective IT financial management is growing exponentially. The impact of this shift in expectation is causing CIOs to make modernizing their IT Financial Management (ITFM) and IT Service Costing methods and tools one of the top five items on their priority list for the coming year.

Modernizing your ITFM processes and IT Service Costing methods and tools are fundamental to optimizing IT expenditures. However, not all ITFM software modernization solutions are created equal. Simply purchasing ITFM software does not alone deliver the change needed to understand how IT expenditures are mapped to achieving business outcomes. Let me explain!

Not many people would tackle an electrical whole-house renovation project without a certified electrician, nor would they attempt surgery without an experienced surgeon. Nowhere is it clearer than when it comes to the financial management of the IT organization that there are gaps in how to modernize current ITFM processes and methods. For example, the most prominent gaps are in:

  • industry insight,
  • awareness of best-practices
  • design it measurable IT services, and
  • use of  modern ITFM software tools.

The result of these gaps on current ITFM approaches are numerous labor-intensive spreadsheets, that even when well-managed do not provide sufficient insights into the discreet costs of IT products and services and how they are being consumed by business unit customers. Typically, a high level “summary” view is produced that is not easily sustainable given the velocity of changing business requirements that impact IT service costs.

Questions You Should Know

So, if you are in the process of selecting an ITFM modernization solution? I recommend that you be sure and the solution provider the following three questions.

How do you:

  1. Incorporate current complex spreadsheets, create a taxonomy of IT products and services, and integrate the knowledge and assumptions about the business and IT organization into the ITFM software platform?
  2. Create visualizations and provide drill-down capabilities?
  3. Deliver analytics and data that facilitate collaborations between IT and business unit customers about the:
      • use and value of technology,
      • optimization of IT expenditures, and
      • costs mapped to business unit objectives?

Learn More About The Value Of Modernizing ITFM

To learn more watch this 4-minute video.

KEDAR Information Technologies (KEDARit) is a leader in working with IT organizations to modernize their IT Financial Management methods and tools.

To schedule a convenient day and time to talk with a ITFM Specialist and learn more, click “Save The Date”. Or, call us directly at (972) 317-3577.