a cfo's guide to understanding the black box of it

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?

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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

Questions?

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Contact Mark Jones at MaJones@apptio.com

for spending your time with us.

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Thank You