a cfo's guide to understanding the black box of it
TRANSCRIPT
A CFO's Guide to Understanding the Black Box of IT
Jimmy LeFever, PayStream AdvisorsMark Jones, Apptio
Today’s PresentersToday’s Presenters
Jimmy LeFeverResearch Manager
PayStream Advisors
Mark JonesDirector of Content
DevelopmentApptio
Who is PayStream Advisors?
www.paystreamadvisors.com
Research and Advisory Services for Financial
Operationso Purchase to Payo Research, Tools & Educationo Benchmarking o Electronic Paymentso Annual Innovate Summit
PayStream educates and empowers finance and procurement professionals to become agents of change.
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Agenda
• The Black Box of IT
• Understanding IT Spend
• Technology Business Management (TBM) Best Practices
• How Apptio Can Help
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Poll Question #1
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The ‘Black Box’ of IT
The Black Box of IT
How accurate is our IT budgeting and forecasting?
How does our IT spend compare to industry peers?
How do changes to individual IT costs affect the business?
CFOs struggle to understand the impact of complex IT investments
Unlocking the Black Box of IT
An increasing number of CIOs report directly to CFOs
This relationship strengthens CFO’s ability to gain insight from the black box
CFOs are placing more strategic focus on IT to maintain competitive advantage
The Evolution of IT as a Value Driver
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Understanding Your IT Spend
Understanding Your IT SpendCurrent Capabilities of Enterprise Resource Planning,
Business Intelligence Tools and Spreadsheets
Customer Relationship Management
Comprehensive IT Cost Data (asset utilization, operational metrics that impact labor efficiencies, and the cost of maintaining target service levels)
Corporate Performance Management
Accurate, Timely ITBudgeting and Forecasting
Manufacturing, Sales, Finance ERP
Actionable Technology Consumption and ROI Data
Breakdown of IT Expenditures into Cost Units
Understanding Your IT SpendTechnology Business Management (TBM) solutions provide a
common language between business units, finance and IT.
Understanding Your IT SpendTBM solutions facilitate a well-informed perspective.
Improved IT decision making
Systems replacement
Cost savings or avoidance
Enhanced key IT initiatives
Better accuracy and real-time reporting through automation
Transformation to IT-as-a-Service
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Poll Question #2
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TBM Best Practices
TBM Best PracticesIT Cost Transparency
Integrate financial, operational, and billing data with IT asset and operations data from your management system.
TBM Best PracticesBudgeting, Forecasting and Planning
Eliminate static spreadsheets and utilize a single system of record designed specifically for IT. Consider third party and cloud-services, ongoing labor management, service innovation, consolidation, and retirement.
TBM Best PracticesBenchmarking
Benchmark the total costs of IT products and services rigorously against industry peers and organizations of similar size, as well as internally between and across business units.
TBM Best PracticesOptimize for Efficiency and Performance
Integrate the total cost of IT products with quality of service information. True process integration maximizes ROI and drives down unit rates.
TBM Best PracticesConsiderations When Selecting a TBM Provider
Does the vendor offer other non-TBM product suites that might result in a conflict of interest or favoritism?
Is the solution cloud-based with adaptive data management?
Does the solution provide standardized cost, IT taxonomy, and KPI model – best practice allocation and calculation logic?
Does the vendor provide third party validation?
Does the vendor adhere to best practices and methodology?
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How Apptio Can Help
for spending your time with us.
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Thank You