Content: Press, Consultants & Analysts have been talking about the ‘New Normal’ 3 core themes that characterise the ‘New Normal’ 3 Quot...
IT Cost Management with Amalytics Software
CIO Institute – IT Cost Management for the ‘New Normal’
Excel-based IT sourcing decisions could lose businesses millions
The vast majority of modern businesses take critical decisions based on analysis carried out with Microsoft Excel. But the quantity and complexity of data required for these analyses can result in a large margins of error – potentially leading to flawed decisions. Tools exist in the market that provide an alternative to solely using Excel, but these suffer from the same constraints as Excel even if they can handle the scale of data better.
Why Finance Departments of Shared Service Units are turning to Big Data
The transition to a Shared Service Operating model typically involves the creation of new Group-owned Legal Entities (LEs). These LEs may or may not be domiciled in the same location as that of the current legal entities providing the services. While some of these entities are setup as asset holding entities for the purposes of tax efficiency, others are setup to consolidate staff or vendor contracts to maximise procurement and productivity efficiency gains respectively.
Why Global Enterprises need a big-data engine for IT Costs
IT Costings is a means to an end. It is meant to achieve a business objective typically driven by either the Finance or IT departments. A consumption-based IT Costing Model is complex with many tiers of cost allocation. In comparison, Cost Allocation Models for other departments such as Legal, HR, is far simpler as it doesn’t involve IT Infrastructure.
A Sample IT Value Report
Our team has several decades of experience in producing cost/value reports for C-level executives. This ‘IT Value Statement’ provides you with an example of what you could prepare for your Management easily in less than an hour.
Navigating the Financial Implications of Digital Transformation Technologies
Digital Transformation shouldn’t necessarily be seen as a Cost Transformation exercise. In a traditional cost transformation exercise, the typical levers to lower costs are a reduction of the unit costs of resources through initiatives such as offshoring or shared services, to leverage economies of scale and standardisation. Digital Transformation, on the other hand, transforms the cost base through the adoption of technology.
Top 8 pitfalls of implementing an IT cost model
Pitfall #1: Attempting to take on too much too soon Pitfall #2: Not employing people with requisite skillsets Pitfall #3: Failure to gain cross-departmental senior ...
Embed a Data-Driven, Continuous Cost Optimisation Culture in Your Organisation
Modern businesses are complex. Management do not have the tools necessary to keep the organisation operating as a lean enterprise. This results in ad-hoc periodic initiatives often supported by 3rd party consultants to help with cost reduction. Often consultants have even less information on where the “bodies are buried” and are under pressure to provide answers in very short timescales.
Why Regulated Market Infrastructure firms are turning to a big-data IT Cost Tools
The Finance Departments of Market Infrastructure firms need to provide transparency of internal costs at a segmental level to their regulators, in order to prove they are pricing their services ‘fairly’. They also need to provide evidence to their auditors that the computation of Transfer Pricing charges and VAT recoveries are fully compliant with global accounting standards.
Adopting a Cloud first policy?
Executive Summary: While migrating servers to the cloud, enterprises need to undertake an accurate cost analysis of the as-is costs as a traditional excel-based “average-of-averages” fails to deliver against the promised ROI benefits of Cloud migration and could result in needless cost increases that are entirely avoidable.
4 critical CFO & CIO measures for your Transformation Programme
Executive Summary: ‘You can’t manage what you don’t measure’ has never been truer than with modern transformation programmes. Not developing additional perspectives of your Technology costbase beyond the traditional financial perspective results in the inability to determine its benefits in the midst of other cost addbacks.
Expose the right levers to optimise your Technology costs
Most organisations have a rudimentary view of their Technology cost base. Poor transparency of costs results in greater risk of flawed decisions.
Why do Enterprises need IT Cost Management Software?
Technology is getting ever more complex
What is IT Cost Management Software?
IT Cost Management software provides a consistent framework for IT investment decisions. It replaces the dozens (if not hundreds) of ad-hoc, one-off spreadsheets that are put together to support with IT investment decisions.
IT Cost Line-of-Sight challenge
Understanding the Total Cost of Ownership (TCO) of systems is challenging. With progression within each stage of the application lifecycle, over time costs get “hidden below the surface”.
What is ACO? What are the components of ACO?
ACO refers to the Operating Cost of running an application or IT service. It is also referred to as the fully loaded costs of a system that spans all direct and indirect items that attracts costs.
The ‘hidden’ dimensions of IT Finance
A traditional ‘GL view’ of the Technology costbase is no longer sufficient for modern decision-making.
The ‘true’ IT cost of servicing a Business Unit
While most businesses today have revenues generated from multiple business segments, central functions such as Technology tends to be shared. While this sharing results in economies of scale and lower unit costs, not having clarity on the true cost of servicing each business segment can result in poor Product and Technology investment decisions.
Why is the IT Service Catalogue critical for IT Costings?
There are many datasets used in an IT Costings exercise, none as critical as the IT Service Catalogue. While most the attributes of a typical catalogue are not used, it is essential to get the Portfolio of IT Services well defined.
Different types of Cloud
The term ‘Cloud’ covers a multitude of very different offerings.
The complexity of IT Cost Modelling
Modern technology and business models make today's IT Cost Modelling much more complex. A quick visual on what this entails....
Connect Amalytics CostLens to FPM tool
FPM software is well suited to handling all aspects of the costbase except Technology. With Technology increasingly a large (if not the largest) portion of your costbase, basic allocation of technology costs that is not aligned to consumption of technology infrastructure encourages behaviour that increases Technology’s costbase and results in inaccurate technology and product investments.
Is your IT Cost Benchmark analysis escaping the “irrelevance trap”?
Accurate benchmarks requires relevant cost components, good quality datasets and accurate modelling of costs to avoid the “irrelevance trap”