IT Cost Management John Roberts Application Developer Service-now.com Geoff Brown Senior Solution Consultant Service-now.com
ServiceNow Knowledge11 IT Cost Management Session
Nov 28, 2014
ServiceNow IT Cost Management presentation from Knowledge11 conference.
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Transcript
IT Cost Management
John Roberts Application Developer Service-now.com
Geoff Brown Senior Solution Consultant Service-now.com
Overview • Business Challenges
• Current State
• Definitions & Core Concepts
• Cost Inputs
• Cost Allocations and Recovery
Business Challenges • IT is viewed as a cost center simply because IT costs
and services are not correlated with value
• Tracking resource, project and service delivery costs is guesswork
• Difficulty speaking the universal language of business – money
• Unable to surgically drive out costs
Current State
Integrated Solution Service por*olio Service defini+on and presenta+on Manage availability through subscrip+ons
Communica+ons
Hos+ng
Infrastructure
Availability Scope Price Service
Project por*olio Macro view of all projects Resource u+liza+on
Manage all project states
Demand and priori+za+on
Resource u+liza+on
Risk Progress Cost Service
IT cost management Track transac+onal and CI costs across all support processes and projects
Fixed
Recurring
Projected Remaining Actual Expense
Labor
Budget
execuAves IT mgmt
customers PMO
Service Catalog Availability
Projects ITIL processes Configura+on Items
Expenses
• Powerful financial dashboards drive accurate decisions
• Automated service cos+ng using CMDB service model
• Simplify cost collec+on and aggrega+on
• Help to set service pricing
• Flexible cost alloca+on
Cost Sources
Labor costs Operational and project tasks
CI costs Fixed and recurring cost
Core Concepts
Resource rate cards
Labor costs
Task rate cards
CI rate cards (template)
CI costs (recurring)
Business service expense lines
Budget Chargeback Dept, group company, etc.
Cost centers
Expense lines
Alloca+on summaries
Projects ITIL processes/opera+ons
Configura+on Items
Expense alloca+ons
Distribu+on costs
Direct and Aggregated Costs
• Total Service Costs Service
• License Cost • Annual Maintenance Application
• Fixed Purchase Cost • Recurring Power Costs Server A
ggre
gate
d C
osts
CI Relationships
CI Cost Example
CI rate card CI cost Expense lines
Expense aggrega+on AllocaAon rules
Expense alloca+on
CI Cost Examples
Set up fee
Date: 2/01/11
Cost: $275
Backups Date: 2/1/11 to
12/31/11
Cost: $75/month
Set up fee
Date: 2/01/11
Cost: $275
Backups Date: 3/1/11 to
12/31/11
Cost: $75/month
Securi+es lending
UNIX200 (server)
UNIX201 (server)
Inherited expense lines from children
Inherited expense lines from children
Services
CIs
PeopleSo[ Enterprise Services
PeopleSoF Financial
Maintenance
Date: 1/01/11
Cost: $8,000
Add users
Date: 3/12/11
Cost: $750
PS Apache01
HosAng
Date: 1/01/11 to 12/31/11
Cost: $350/month
PS Apache02
HosAng
Date: 1/01/11 to 12/31/11
Cost: $200/month
PeopleSoF HRMS
HosAng
Date: 1/01/11
Cost: $900
Labor Costs
Time worked Costs based on hourly rates
Flat rate Costs based on predefined rules
Allocations
PeopleSoF enterprise services
HR 20 units
Finance 35 units
Units Capacity: 60
Allocated: 55
SecuriAes lending
Trading 15 units
Units Capacity: 50
Allocated: 15
Available 35 units
Budgets
AdministraAon Budget FY11
Finance cost center
Expense alloca+on 1
Expense alloca+on 2
Expense alloca+on 3
Human Resources cost center
Expense alloca+on 1
Expense alloca+on 2
Expense alloca+on 3
Demo
What’s Next • Real world feedback
• Service portfolio integration
• Detailed cost estimation planning
Q & A
j_roberts
#know11 #servicenow
Thank You Application Developer
John Roberts Service-now.com
Senior Solution Consultant
Geoff Brown Service-now.com
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