I don’t think most people recognize the huge gap that exists between where IT leaders want to be and where they are today. To a large part, this is a technology issue–IT Leaders deploy CPM, ERP, CRM, SCM for other functions, while they themselves track the financial performance and manage costs of billion dollar IT departments on spreadsheets! With that in mind, we’ve started working with an outside research firm called the Worldwide Executive Council (WEC)—a group focused on CIOs and IT leaders at enterprise companies—to better understand the attitudes and perceptions of CIOs as it relates to IT costs and transparency. Over the next 12 months, we’ll conduct a series of surveys on the subject, and have just completed the first one… (Read more)
I recently did a roundtable breakfast with 13 IT leaders across various industries. In the software business, we are always [...]
Linda Tucci, SearchCIO, wrote a pair of great articles (Deutsche Post DHL cuts IT budgets by half with a supply demand [...]
Welcome to my first post – I am the founder & CEO of Apptio and am starting to get my feet wet in the blogosphere. I wanted to start by telling you why I believe Technology Business Management will be the hottest thing in Enterprise IT in a few years, and why it’s unlike anything out there today.
Processor magazine writes an interesting article on some of the pitfalls of implementing a chargeback system. Without knowing more, it [...]
As more companies become accustomed to purchasing technology through the Cloud, the problem of Shadow IT is becoming a lot worse – with the potential to grow well beyond Forrester’s current estimate of 15% in some organizations. For many of our customers, gaining control of (or at least management of) Shadow IT through better IT Cost Transparency has shown business leaders the real “full” cost of Shadow IT and IT leaders the need to better align services to business needs.
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In the Baseline article, “IT Spending Meets C-Suite Expectations” Ernst & Young Advisory practice lead, Leslie Blair, outlines the process of IT Cost Optimization and the need for good cost transparency as a starting point. Following a distinct 3 phase process, IT leaders can implement a process for sustainable cost optimization and performance improvement….
Activity Based Costing (ABC) is absolutely the ideal method for allocating costs—as proven by decades of Cost Accounting and ABC practices in other areas of the business—and should be maintained as the gold standard for IT service costing and chargeback. A simple flat rate allocation may be a good first step into chargeback or “showback” policies, as it develops the system and the model for allocation to business units. But leaving that as the end state would be a big mistake.
How do we Get There Companies doing the best in becoming Lean are focusing on a few key objectives: 1. [...]
I thought I’d start out the New Year by reexamining what it means to be Lean when it comes to [...]
General | jeffwday | 
August 28, 2010 1:51 pm | 
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