Do your business users consume IT like it’s a free, unlimited resource? Are you trapped in back-to-back meetings with business unit leaders who don’t understand why they’re being charged so much? Do your business relationship managers struggle to explain the value business consumers receive from IT services?
If you answered yes, consider this: what if your team—from IT Finance to business relationship manager—fully understood and could communicate the cost impact of business consumption of IT services? How could they benefit from more transparent billing?
These aren’t hypothetical questions. As CIOs and their teams wrestle with management of IT resources in increasingly complex and technology-dependent environments, IT value is difficult to articulate to the people who need to understand it most.
In the absence of this information, we can tell you what they aren’t able to do.
- If they aren’t able to calculate the price of consumption per business unit and communicate these charges, they can’t defend allocations or recover costs. Not only does this breed dissatisfaction with the IT organization, it makes it difficult for IT to help business consumers understand how to balance service levels with costs.
- If business consumers receive little to no information about what’s driving IT charges, they lack an understanding of which services they’re consuming and the impacts on cost. Nor do they understand how their usage compares against their budget or to other departments within the organization.
- If IT is struggling to provide a regular cadence of facts, they aren’t able to consistently tie business decisions that generate demand to the cost of the technology that satisfies it.
Better communication using a bill of IT.
Technology business management applications like Apptio Cost Transparency automate IT service, application, and infrastructure cost allocations, dramatically improving IT’s ability to analyze consumption patterns and uncover opportunities for cost reductions. This transparency opens a door for a next generation Bill of IT, an important vehicle for communicating consumption and its associated costs.
Get cost allocation right, and you can provide business leaders with insight into the tech spending that runs their business activities and the ability to influence its magnitude and direction at low cost.ForresterHow to allocate and charge back your business tech expenses without screwing up
Apptio Bill of IT streamlines adoption of defensible IT billing that helps you shape demand for technology services. Not only does this simplify the process of creating, distributing, reviewing, and managing bills, it helps explain costs and variances so that consumers understand what they’ve purchased and why.
Leveraging the industry standard ATUM cost model, Apptio Bill of IT automates a customizable email “bill” to the business and provides levers that enable business owners to optimize investments and influence consumption across both traditional and cloud-only environments. The SaaS application also operationalizes a process around the cost allocations calculated by Apptio Cost Transparency and the setting of rates & prices that support cost recovery efforts.
Combined, these features help IT leaders drive consumption behavior by better communicating current, true costs alongside other, more efficient or cost effective options.
Here’s what your team can do with a fair, transparent, and easy-to-understand bill of IT:
Justify allocations and increase accountability
- Calculate IT bills using your business rules to make invoices simpler and more business-friendly.
- Automate showback to communicate the impact of IT.
- Automate chargeback to recover costs.
Drive consumption behavior
- Set prices for IT services and invoice by price, plan, cost, or hybrid rates.
- Promote subsidization strategies to drive adoption and sunset of services.
- Communicate unit rate consumption for applications and services.
Communicate the value of IT
- Automate email delivery for easy access to bills.
- Enable business unit employee access to self-service statement details.
- Replace emotion with fact: communicate allocations via business-specific statements.
More informed, fact-based discussions
Bill of IT users can communicate the impact of IT support to the business via showback or automate the recovery of costs and fund budgets through chargeback. In either case, more informed, fact-based discussions around IT costs between technology leaders and their business counterparts often highlight areas of efficiency or potential cost savings.
Encouraging better IT financial stewardship involves shaping consumption behavior and quantifying the value delivered to the business. Apptio Bill of IT automates the creation and delivery of pro-forma invoices that empower business partners to be better consumers of IT.
Tell me more about Apptio Bill of IT.
Show me an example: see how Nomura uses Apptio Bill of IT to shape business demand.