ITFM Pathway to Success - Structured Transparency

Introducing the ITFM Pathway to Success

The MagicOrange ITFM Pathway to Success is specifically designed to help those leaders responsible for managing the IT and other Shared Services finances of their organisation, such as CIOs, CFOs, IT Finance VPs, and their respective teams.  The vision of every financial leader is to optimise the financial performance of an organisation through good financial planning, fiscal discipline, cost control, sound governance, analytical support, liquidity, return on investment, and accurate reporting. To assist organisations in achieving these goals, MagicOrange has developed the ITFM Pathway to Success, providing an easy-to-follow framework for implementing an effective IT Financial Management (ITFM) program.

The 7 Steps of the ITFM Pathway to Success

	Step 1 – Assessment A comprehensive current state assessment to understand the level of ITFM maturity, data quality, and alignment with the corporate strategic plan.
	Step 2 – Service Definition Ensuring IT service charges are transparent and understood by the business.
	Step 3 – Data Readiness Ensuring high-quality service consumption and cost data to achieve cost transparency and implement showback/chargeback to the business.
	Step 4 – Automation Automating ITFM processes to increase transparency into service usage and costs, and to efficiently produce financial and service consumption reports.
	Step 5 – Service Costing & Benchmarking Determining unit service costs for each IT service being delivered to implement chargeback based on consumption.
	Step 6 – Chargeback Implementing chargeback to charge consumers of IT services for their actual consumption.
	Step 7 – Benefits Realisation Measuring if the expected benefits and goals were achieved after the ITFM project completion.

Achieving ITFM Success with MagicOrange

Driving Cost Optimisation

Guided by the MagicOrange ITFM Pathway to Success framework, customers can systematically and holistically approach cost optimisation and savings initiatives.

Recognition and Implementation

MagicOrange is an established ITFM solution recognised by Gartner and successfully implemented at numerous large, complex international enterprises across various industries. It provides business leaders with a progressive cloud-based ITFM tool and professional guidance that brings full transparency into the value of technology in the organisation.

MagicOrange introduced the ITFM Pathway to Success at the Financial World of Information Technology Conference hosted by IT Financial Management Association (ITFMA). For more information on how to implement an effective ITFM program, contact MagicOrange to learn more about our comprehensive framework and expert support.

What is IT Financial Management (ITFM)?

Definition and Importance

IT Financial Management (ITFM) is an active program that reveals the true costs of delivering IT products and services. It enables organisations to optimise technology spend, improve investment governance, inform strategy, and increase profitability. ITFM is much more than an allocation and chargeback process.

Beyond Allocation and Chargeback

ITFM enables holistic management of IT spend and improved ways of communicating costs. This allows IT to become a business partner that helps organisations achieve strategic goals instead of being seen as a drain on resources.

Building on the Global Standard of Financial Management

Alignment with ITIL

While developing the framework, MagicOrange aligned the ITFM Pathway to Success with the Information Technology Infrastructure Library (ITIL) definition of ITFM. ITIL is the process of managing financial resources, investments, and costs to provide IT services. It includes budgeting, accounting, and charging with the goal of providing these services cost-effectively and creating value for the business.

ITIL v3 Processes

ITIL was developed by the British government in the 1980s and has become the global standard for how an IT organisation should operate and deliver services. Financial Management is one of the 25 processes in the ITIL standard.

The ITFM Pathway to Success Framework

Designed to Unlock ITFM Potential

The MagicOrange ITFM Pathway to Success has been specially designed to unlock the potential of the ITFM discipline. MagicOrange experts recognise the complexity of the journey to ITFM maturity and the importance of identifying a step-by-step pathway to success. They are well equipped to guide customers through the process and help them realise all the benefits of a successfully implemented ITFM framework.

Importance of Process Change and Data Preparation

It is crucial to focus on the complex task of process change and data preparation upfront before implementing an ITFM automation platform. This approach has proven to yield the best results.

Organisational Change Management (OCM) in ITFM

Importance of OCM

OCM is a key consideration when implementing an ITFM program. It has been embedded into the MagicOrange ITFM Pathway to Success to help customers improve their ITFM capabilities.