One of the barriers to an effective IT budgeting exercise is the language we speak in IT: technical jargon and complex tables of IT spend not directly linked to the business value or actual line of business consumption - hardly a language that would resonate with your average internal customer or executive board.
The conversation needs to happen in terms of customer-facing services, not processes or utilities. These services need to be transparent and understandable, in "business-speak," to the lines of business, and accompanied by an accurate service-based unit price (rate). If the CIO and IT organization as a whole are going to become trusted, strategic partners within the business, then they need to present the full cost of doing business with IT: by product, by service line, by line of business, by customer.
Customer-friendly service definitions and precise unit costs per service enable more accurate demand planning, consumption tracking, and budgeting, and ultimately provide the information your CIO needs to make educated decisions around service delivery - optimizing the budgeting exercise and increasing IT's integration with the business.
IT Financial Management Training & Education
Managing a successful IT department is about establishing a healthy economic relationship between IT and its customer. Lontra's 5 Steps to Effective IT Budgeting workshop series gives organizations the critical capabilities they need to do just that, in just 3 days!
Lontra's Financial Management Suite includes three intuitive modules designed to manage the end-to-end economic relationship between IT and its customers.
Financial Manager Provides complete visibility into IT service costs from the business perspective using service unit-cost models, cost recovery & chargeback
Demand Manager Enables IT organizations to engage business customers to accurately forecast service demand, track it against actual consumption and ultimately influence customer buying decisions
Join Lontra's experts, partners, and industry thought leaders each month in "The Business of IT" as they provide articles, white papers, events and more to advance your ITSM and ITFM initiatives.
Lontra's Financial Management Suite includes three intuitive modules designed to manage the end-to-end economic relationship between IT and its customers.
Join Alliance Data CIO, Barry Carter, as he tells their story of developing a Service Portfolio and using it to shape demand for IT services.
