Show me the money - The Value of Cost Transparency in Complex Systems
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Transcript of Show me the money - The Value of Cost Transparency in Complex Systems
Price Paid for Enterprise IT?
• How is the price calculated in your organisation?
• CAPEX + OPEX Model?
• Subscription Model?
Consequences
Reduced investment in new IT
Reduce Costs (headcount, tools, sourcing models)
Reduced Service Levels
Negative Reinforcement Loop leading to …outsourcing??
“System”
a set of things working together as parts of a mechanism or an
interconnecting network; a complex whole
So, how can we make IT costs more transparent?
More importantly who can make complex system costs more
transparent?
How?
• Model everything as a service
• Make every service a P&L• Capex = Monthly
Depreciation Charge• Opex =
• Direct Costs • Labour
• Services
• Indirect Costs• Supporting/Shar
ed Services
• Key Principles• Cost “Inheritance”• Standard interfaces (see
Tom Grave’s Ent Service Canvas)
• TBM & ATUM