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OwnerJuly 2015 to presentEl Cerrito

Finding best available technologies for meeting energy needs today and tomorrow: energy efficiency, demand response,, solar, wind, electric vehicles, biofuels and smart grid. It’s all the innovations that make the energy we use more secure, clean, and affordable. The energy world's best hopes lie in what's happening in the digital realm, especially in data analytics.

Monday, August 24, 2015

True Cost of IT

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1. Background

2. Acronyms/Definitions
3. Business Case
4. Benefits
5. Risks/Issues
6. Success Criteria
7. Case Studies
8. Companies
9. Links

1.Background
  • IT is no longer a doer of services.  Transforming into a very critical component of the business unit
  • Most companies spend 2 to 3% of their revenues on IT, financial service firms, spend nearly 10%.   It is estimated that 10 to 25% of these expenditures are “wasted” due to: 
    • Uncontrolled business unit IT related spending. 
    • Shadow IT, especially related to Cloud, Big Data and Mobile 
    • Underused / improperly deployed resources / Lack of understanding where and how IT assets are deployed. 
  • Business management and IT have difficulty on proper allocation strategy of IT costs  Key questions commonly asked include: 
    • Are we spending too much or too little on IT? 
    • Is there a way to reduce IT costs without affecting our business operations? What actions could be taken to contain future IT expenditures and assess ROI and TCO

2. Acronyms/Definitions
  1. Bill of IT - Detailed cost breakdown.  Allocate like electricity.
  2. Cost Allocation - By properly identifying, measuring and allocating costs to business units based on a usage model for example, it can be determined if IT assets are being under utilized or IT assets spend is appropriate on type of assets being purchased,
  3. Maturity Model - xx

3. Business Case
  • Understanding the cost of IT services, or expressing the cost burden placed on IT by various business units, inevitably leads to better decision-making around exactly how to assign the costs from one category or group to another.


4. Benefits
  • Minimize IT Costs
  • Maximize Business Value

5. Risks/Issues
  • Lack of IT cost transparency / connection to the business unit (BU) for IT costs accumulation and allocation 
  • “Hidden” costs incurred/managed outside of IT:
    Shadow IT, costs incurred by BU not known by IT or CFO 
  • Limited correlation between IT costs and derived business value 
  • Disproportionate spending on older applications and infrastructure 
  • Lack of an agreement on a set of “rules” for allocating IT spend.
  • Cloud - Some organizations are moving to the cloud without knowing they are moving to the cloud

6. Success Criteria
  1. xxx
7. Case Studies
  • xxx

8. Companies
  1. Cloud Transformation & Security Solutions Hong Kong

9. Links
  1. xxx

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