ets rate model development 2015/17. agenda brief history of ets rates development outcomes of rate...
TRANSCRIPT
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ETS Rate Model Development2015/17
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Agenda
Brief History of ETS Rates DevelopmentOutcomes of Rate Development ProcessesBenefits of using proposed rate methodologyService LinesProcess & Key Planning decisionsTimelineRate ElementsCustomer Input
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Rate Development History
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History – Lessons Learned
Iterative Methodology AdjustmentsDefining ServicesUnitsCost Allocations
Resulted in continuous rate adjustmentsRate Transparency requested
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Today’s RatesBringing forward learning from the pastTrue Cost of Delivering a ServiceEliminate subsidization
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•Compensation•HW/SW•Maintenance•Overhead
Forecast Costs
Forecast Usage
÷ = Unit Rate
Pricelist
Customer Budget
•Estimates by Customer by Service line
•Trend Analysis•Growth Projections•Customer Feedback
Forecast Usage×
=
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Outcomes & BenefitsList of products and services
Clearly defined Discrete products
Stabilize ratesCollaborative planning with customersRefine our usage and cost projectionsInvestment vs. Refund
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Outcomes & Benefits cont.Publish Rate & Pricelist
Eliminate subsidizationTrue cost of service deliveryBudget predictabilityA-87 compliant rates
Service BenchmarksDemonstrate value for services provided
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Questions
?
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Rate Sheet & Pricelist Example
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CUB Responsibilities
Review and approve methodologyKey meetings to review work to dateTransparency of rate model includes internal and
external scrutinyFinal layer of CUB scrutiny
Final rate approval
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ETS Rate Methodology
Define services to meet business demandUnit descriptionsForecasted current customer usage & growthNew customer projectsNew customers
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ETS Rate Methodology cont.
Pessimistic and optimistic forecastsStaffing assumptionsForecasted externalForecasted overhead costs
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Service Rate Development
Pricelist & Rates
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ETS Rate Model and Project Timeline
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ETS Services Lines
Application ServicesApplication DeliveryE-Government
Data Network ServicesLocal Area NetworkState Network Access
Data Storage ServicesBackupData Storage
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ETS Services Lines cont.IT Professional ServicesManaged Computing Services
CollocationHosting
Workplace Productivity ServicesComputer LabDesktop ServicesEnterprise EmailPhone
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Example of a Computing Rate
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ETS Rate Development - Common Terms
FullCost ™ ToolTool used to define services, develop business plan,
budget planning and calculate ratesBudget Units
An aspect of our planning tool that allows the ETS budget to be segregated by services offered
Internal CostsBuy and sell services within the organization
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Common Terms cont.External Costs
Expenses paid outside the organizationDeliverables
A service or product sold to the customerCost Pools
A collection of costs spread across more than one deliverable or allocated to a specific service
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Key MessagesCUB & ETS experienceValueCollaborative Planning
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