ITFM Pathway to Success: Step 3 – Data Readiness
ITFM Pathway to Success: Step 3 – Data Readiness
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. The next step in this process is to ensure high-quality service consumption and cost data to achieve cost transparency and implement showback/chargeback to the business.
The Importance of Data Readiness in ITFM
Key Considerations
Data readiness is crucial for cost transparency and effective ITFM implementation. Using tools like the MagicOrange data assessment tool is essential for assessing the availability and quality of cost and service usage data. This step provides a quantitative rating for all applicable data and forms the basis for future automation and showback/chargeback model design.
It’s important to begin the ITFM improvement journey with available data and develop a plan to enhance it over time. Usage data should be aligned with services, identifying users down to the business unit or cost centre level. Cost data must be captured at the individual service level, and if unavailable, financial systems should be modified, or MagicOrange tools used to align costs to IT services.
Steps to Ensure Data Readiness
Assessing Data Quality
The MagicOrange data assessment tool helps assess data quality. Each service’s cost and usage data should be rated and weighted according to cost. These ratings guide the planning of future actions for automation and showback/chargeback design.
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.
Aligning Cost and Usage Data
Aligning Usage Data with Services
Aligning usage data with services is essential. This data identifies users of services down to the business unit or cost centre level, ensuring accurate consumption tracking.
Ensuring Accurate Cost Data
Accurate cost data is required at the individual service level. If not available, the financial system’s general ledger and chart of accounts should be modified. Alternatively, MagicOrange tools can be used to align costs to IT services.
Expert Guidance from MagicOrange
Navigating the ITFM Journey
MagicOrange recognises the complexity of achieving ITFM maturity and provides expert guidance through each step of the process. The ITFM Pathway to Success framework helps customers drive cost optimisation systematically and holistically.
Benefits of Implementing the ITFM Framework
Implementing the ITFM framework brings numerous benefits, including reduced costs, increased customer satisfaction, and greater value creation. MagicOrange’s expert guidance ensures these benefits are realised effectively.
Continuous Improvement and Value Creation
Achieving ITFM success requires ongoing assessment and alignment with business goals. MagicOrange provides the tools and guidance necessary for continuous improvement and value creation. Contact MagicOrange to start your ITFM journey and drive cost optimisation in your organisation.