ITFM Pathway to Success: Step 4 – Automation
The ITFM Pathway to Success framework is specifically designed to assist CIOs, CFOs, IT Finance leaders, and their respective teams. To achieve the true benefits of implementing ITFM processes and best practices, a series of planned and measured steps must be executed methodically over time.
Step 1 focused on assessing and planning, reviewing the IT strategic plan, and aligning it with the business strategy. In Step 2, services were defined to ensure transparent IT service charges. Step 3 ensured high-quality service consumption and cost data to achieve cost transparency and implement showback/chargeback to the business. Now, in Step 4, we focus on the automation of these processes using purpose-built ITFM software like MagicOrange.
The Importance of Automation in ITFM
Key Reasons to Automate
Automating ITFM processes is crucial for several reasons:
- Increasing Transparency: Automation provides clear insights into service usage and costs.
- Efficient Reporting: It enables the efficient production of financial and service consumption reports.
- Self-Service Reporting: Customers gain access to self-service reporting and data, allowing them to understand and regulate their service consumption and costs.
- Monthly Chargeback: Automation facilitates the performance of monthly chargeback and the generation of IT bills.
MagicOrange assists customers through their ITFM and cost transparency journey by driving profitability and unlocking value. The solution ensures efficient utilisation of assets, accurate profit margins, and reduced manual effort. More importantly, it provides actionable insights that drive business transformation and future growth.
Choosing the Right ITFM Tool
Key Considerations
Selecting the right ITFM tool is a critical business decision. Here are some key considerations:
When choosing an ITFM solution, it is advisable to select one based on tools you are already familiar with, such as Excel, Power BI, or Power Automate. This approach minimises the learning curve and simplifies data import and transformation. It is also beneficial to select a tool that does not require coding or specialised skills, allowing for easier maintenance. Begin with basic services that have stable data to ensure reliability. Additionally, avoid relying on external teams for data or process execution to minimise external dependence.
Conducting a Comprehensive RFI/RFP Process
Before making a purchasing decision, conduct a comprehensive Request for Information (RFI) and Request for Proposal (RFP) process. Here are some steps to follow:
- Define Objectives: Identify the objectives and key stakeholders.
- Specify Tool Capabilities: Determine the specific tool capabilities required and the timeline for implementation.
- Assess Data Quality: Evaluate the availability and quality of service consumption and cost data.
- Evaluate Costs: Consider the upfront and ongoing costs of the ITFM tool.
- Determine Management: Decide who will manage and maintain the tool.
Expert Insights From Pete Hidalgo
Pete Hidalgo is a recognised IT Financial Management (ITFM) expert with over 25 years of experience. He developed the ITFM Pathway To Success framework and implemented significant cost-saving processes at a Fortune 100 company. Pete also led ITFM initiatives at Ernst & Young and taught ITFM courses at EY University. He now focuses on enhancing MagicOrange’s presence in the US and educating organisations on ITFM benefits.
ITFM Tool Selection Process
Request for Information (RFI)
Gather Information: Request information about potential ITFM tools to gain knowledge and develop a list of leading candidates.
Request for Proposal (RFP)
Define Requirements: Establish RFP requirements, evaluation criteria, use cases, and a scorecard.
Involve Stakeholders: Use multiple teams to score RFP responses and include key stakeholders from IT and the business.
Proof of Value (POV): Request a comprehensive POV from top candidates using existing company data and services. Score them based on the POV and propose a contract with pricing.
Best and Final Offer (BAFO): Conduct a BAFO round to obtain the best pricing. Score both providers based on final costs and capabilities and select one for contract award.
MagicOrange: Your Trusted ITFM Partner
Why Choose MagicOrange
MagicOrange is an established ITFM solution recognised by Gartner. It has been successfully implemented in large and international enterprises across various industries. MagicOrange provides business leaders with the means to understand and communicate the value of technology investments.
Expert Guidance from MagicOrange
MagicOrange experts guide customers through the ITFM Pathway to Success framework, ensuring the realisation of all benefits. The progressive cloud-based ITFM tool and professional guidance bring full transparency into the value of technology in the organisation.
Next Steps
Organisations are encouraged to contact MagicOrange for expert support. Automating ITFM processes with MagicOrange enhances cost optimisation, transparency, and business growth.