What are the cornerstones of IT cost control?
Do you know what your IT services cost? Which products are used in the individual departments? And how do you justify the costs to your customers? Digitization confronts companies with new challenges – not only in terms of implementation but also in terms of cost transparency. Because more systems are in use, a bigger IT budget is required in many cases. Faster, more transparent, more flexible is the motto. More confusing, uncoordinated, more expensive – this has to be avoided. But how do companies ensure maximum cost and performance transparency in IT service? And how do they manage their IT service components?
Analysis of the status quo
At the beginning it has to be clarified which systems and products are used in the individual departments. On the basis of an initial overview, an analysis can be created to answer these questions: Which departments use which IT service and with what priority? Where can savings be achieved if necessary? Only those who have an overall view of all resources and structure them sensibly can make targeted optimizations.
Speak the language of your target groups
Nobody likes to pay for services that seem unprofitable at first glance. Get to the heart of the matter and look at the budget from different perspectives: CFO, IT manager, and CIO – the value of IT services must be clearly and comprehensibly presented to everyone. If you have concrete suggestions for improving the performance of IT services, that’s half the battle. For example, how can hardware costs be converted into a value-added IT service? Transparent communication builds trust – and ensures that your business grows.
Trust through transparency
Especially when it comes to justifying prices to customers or service providers, a precise analysis of the IT cost structure provides a good basis. If you know exactly which IT services are used in your company, this also pays off for your customers. A transparent presentation also ensures trust here.
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- …what the cost-to-service flow is
- …how to use it to maximize transparency in your IT cost allocation
- …how to track IT costs from primary resources all the way to fully realized business units
Insight into the IT service jungle
What conclusions can be drawn from this? If you want to keep track of IT services, you have to say goodbye to the good old Excel sheet. Today, in the midst of the flood of IT services, profitable and transparent cost control can only be achieved with suitable software tools. IT Financial Management (ITFM) solutions can assess all costs along the entire value chain in a fully automated manner. These systems combine all consumption data on a central platform – quickly, clearly, and transparently. Cost variations between individual years, service provider comparisons, and service costs can be analyzed with a single click. In addition, modern ITFM solutions offer the possibility of creating forecasts. For example, what would happen if hardware costs increased by 3 percent per employee next year? Which parameters need to be changed in order to achieve more savings in the long term? This is the only way to keep IT costs manageable in the future.
The advantages of IT Financial Management service at a glance:
- one platform for all steps of service pricing
- effective automation of calculations and billing
- high quality evaluations at the push of a button
- no error-prone Excel sheets, which have to be updated constantly
You want to know how your IT service does not become a cost trap? Please do not hesitate to contact us. We will be happy to advise you and introduce our ITFM solution anafee to you.