ServiceNow Knowledge11 IT Cost Management Session
- 1. IT Cost Management John Roberts Application Developer Service-now.com Geoff Brown Senior Solution Consultant Service-now.com
- 2. Overview • Business Challenges • Current State • Definitions & Core Concepts • Cost Inputs • Cost Allocations and Recovery
- 3. 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
- 5. Integrated Solution Service por*olio Project por*olio Service defini+on and presenta+on Macro view of all projects Manage availability through subscrip+ons Resource u+liza+on Service Scope Availability Price Service Progress Risk Cost Communica+ons Manage all project states Hos+ng Demand and priori+za+on Infrastructure Resource u+liza+on IT cost management Track transac+onal and CI costs across all support processes and projects Expense Actual Budget Remaining Projected Fixed Recurring Labor
- 6. IT mgmt customers execuAves PMO Service Catalog Availability Expenses Configura+on Items ITIL processes Projects
- 7. • 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
- 8. Cost Sources CI costs Labor costs Fixed and recurring cost Operational and project tasks
- 9. Core Concepts Dept, group Budget Cost centers Chargeback company, etc. Business service Expense Alloca+on expense lines alloca+ons summaries Expense lines CI costs (recurring) Labor costs CI rate cards Resource rate Task (template) cards rate cards Distribu+on ITIL processes/ Configura+on Items costs opera+ons Projects
- 10. Direct and Aggregated Costs Service • Total Service Costs Aggregated Costs • License Cost Application • Annual Maintenance • Fixed Purchase Cost Server • Recurring Power Costs
- 11. CI Relationships
- 12. CI Cost Example CI rate card CI cost Expense lines Expense Expense alloca+on AllocaAon rules aggrega+on
- 13. CI Cost Examples Securi+es Inherited expense lines lending from children UNIX200 UNIX201 (server) (server) Set up fee Backups Set up fee Backups Date: 2/01/11 Date: 2/1/11 to Date: 2/01/11 Date: 3/1/11 to 12/31/11 12/31/11 Cost: $275 Cost: $275 Cost: $75/month Cost: $75/month
- 14. PeopleSo[ Inherited expense Enterprise lines from children Services PeopleSoF Financial PeopleSoF HRMS Maintenance Add users HosAng Date: 1/01/11 Date: 3/12/11 Services Date: 1/01/11 Cost: $8,000 Cost: $750 Cost: $900 PS Apache01 PS Apache02 HosAng HosAng Date: 1/01/11 to CIs Date: 1/01/11 to 12/31/11 12/31/11 Cost: $350/month Cost: $200/month
- 15. Labor Costs Flat rate Time worked Costs based on predefined rules Costs based on hourly rates
- 16. Allocations PeopleSoF enterprise SecuriAes lending services Units Units Capacity: HR Capacity: Available 60 20 units 50 35 units Trading Allocated: Finance Allocated: 15 units 55 35 units 15
- 17. Budgets AdministraAon Budget FY11 Finance cost center Human Resources cost center Expense alloca+on 1 Expense alloca+on 1 Expense alloca+on 2 Expense alloca+on 2 Expense alloca+on 3 Expense alloca+on 3
- 18. Demo
- 19. What’s Next • Real world feedback • Service portfolio integration • Detailed cost estimation planning
- 20. Q&A j_roberts #know11 #servicenow
- 21. Thank You Application Developer Senior Solution Consultant John Roberts Geoff Brown Service-now.com Service-now.com john.roberts@service-now.com geoff.brown@service-now.com