ITFM Pathway to Success: Step 1 – Assess and Plan
ITFM Pathway to Success: Step 1 – Assess and Plan
Understanding the Current State
Importance of a Comprehensive Assessment
The first phase of the MagicOrange ITFM Pathway to Success framework is critical. Step 1 involves conducting a comprehensive current state assessment to understand the current level of ITFM maturity, availability, and quality of cost and service usage data, and the level of customer satisfaction with IT services. This assessment will indicate how well IT is aligned with the corporate strategic plan.
Aligning IT with Corporate Strategy
This phase involves reviewing the IT strategic plan, current and future goals, and objectives to determine how they align with the business strategy. Every organisation needs a set of objectives that support the overall business strategy and a plan to achieve them. If there is no strategic plan or clear goals and objectives, this should be the first priority.
Key Components of the Assessment
Data Quality
The Consumption Data Review requires the company to have IT service consumption data for each service. The quality of this data is crucial. Are the users of each service identified by name and department? Is the quantity of service consumed available? How is the data generated – manually or automatically?
The Cost Data Review shows how IT costs are captured and reported in the general ledger. Ideally, costs for each major service should be captured in its own account or cost center. If IT costs are not segregated properly, the chart of accounts should be modified to facilitate transparency and simplify import into an ITFM tool.
Service Definition
The MagicOrange ITFM Pathway to Success framework ensures that IT service charges are transparent and that the business understands them. Benefits include improved financial compliance and control, better operational control, and enhanced decision-making. A customer-facing IT service catalog with clearly defined services, costs, and usage mapped to each is essential. If there is no such catalog, creating one should be a matter of urgency.
Conducting Assessments
Once data analysis is complete, interviews with IT and business leaders should be conducted to identify areas for improvement. These interviews should focus on how IT addresses specific needs and challenges and gather suggestions for improvement. They should also rate overall satisfaction with IT on a 5-point scale to help determine the benefits of any improvements made.
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.
Developing an Action Plan
Defining ITFM Initiatives
Based on the assessment results, develop an action plan for the future. This should include defining specific ITFM initiatives to be undertaken in priority order and developing a project plan for selected initiatives for the current year.
Securing Stakeholder Approval
Gain approval from both IT and business leaders to move forward. Communicate the plan both internally and externally to keep all key stakeholders informed and to gain adoption.
Achieving ITFM Benefits
Benefits of ITFM Implementation
Implementing ITFM processes and best practices can reduce costs, increase customer satisfaction, and create greater value. A series of planned and measured steps must be taken methodically over time to achieve these benefits.
Guided Implementation with MagicOrange
MagicOrange recognises the complexity of the ITFM journey and has experts equipped to guide customers through the step-by-step process. The MagicOrange ITFM Pathway to Success framework helps drive cost optimisation throughout the organisation by approaching savings initiatives systematically and holistically.
Continuous Improvement
To fully realise the benefits of ITFM, ongoing assessment and alignment with business goals are crucial. MagicOrange provides the tools and guidance necessary for continuous improvement. Contact MagicOrange for expert support on your ITFM journey.