An IT Financial Management (ITFM) Solution Will Boost Your Bottom Line Impact
Wherever they sit in the organization, CIOs are responsible for making sure that IT is agile, cost effective, and delivers services that are responsive to business changes. To deliver this, IT needs to provide a unified view of its value to the business determined through a rigorous, disciplined, and transparent process – ITFM – governed through the offices of the CFO and CIO. IT executives frequently have difficulty explaining IT budget variances, exacerbated by heavy reliance on Excel for financial accountability and an inability to perform quality TCO analysis more than once a year.
For the good of your organization, it’s imperative that the CIO and the CFO speak the same shared language of value and move forward, aligned and focused on maximizing returns on technology investment strategies. Speaking a shared language — one based on a unified financial model view and founded on a shared definition of value — is key to finding a solution. The discipline of ITFM is about equipping both of these executive-level offices and their teams with this better language.
A unified financial model is only as useful as the conversations it enables and the problems it allows decision makers to solve. Applying over 21 years of experience with leading costing and planning implementations, Edgewater Ranzal designed a custom ITFM framework, constructed through Oracle application templates now owned by Oracle. This Oracle ITFM solution leverages the lessons learned from the wisdom of numerous customers and serves as a guide for future clients to build their ITFM solutions. As templates deployed on widely embraced enterprise financial applications – Oracle Profitability and Cost Management (PCMCS) and Enterprise Planning and Budgeting (EPBCS) – Oracle ITFM is prescriptive, pre-configured, and fine-tuned to handle both financial performance management and IT-specific logic. Inherently, your organization gets a jumpstart to a modern defined service catalogue, data management approaches, and a cost and planning model framework that follows leading practices for IT finance and corporate finance.
Recognizing that every business is unique in some ways, the base solution is easily adapted to meet any organization’s IT financial management needs. With a set of 15 pre-built reporting and analytics capabilities, the Oracle ITFM solution empowers companies to bring innovation to the business without disrupting business flow. The templates are free, providing an estimated savings of 650 consulting hours for design, build, and testing, and a cost savings of $125k to $150k. We have fixed scope offerings to implement our ITFM solution in about 7 weeks.
An ITFM solution can:
- Provide transparency to IT service charges
- Align IT projects with strategic priorities
- Allow IT spend analysis: run vs. grow vs. transform
- Help IT build credibility with the business proactively
Leveraging the included set of allocation rules and data source dimensions not only diminishes the effort needed to implement, but also creates alignment with the industry for internal and external benchmarking activities. This alignment promotes a culture of accountability and collaboration with the business, resulting in better IT investment decisions.
So why continue struggling in the dark or spending hours in Excel? Let us shed some light on your opportunities.
This blog post was written in collaboration with our trusted CIO advisor, Thavron Solutions.