clearcost presentation 2015 v7.2
TRANSCRIPT
ClearCost Introduction Version 7.2
About ClearCost 2
Supporting the Needs of the Business 1
Application Design 3
Dashboards & Analytics 4
Proof of Concept – Trail Package 5
Pricing Matrix for the Enterprise 6
Why Does IT Exist?
To support the technology requirements of the Business
Expansion of Infrastructure and Big Data
Application Dependencies
Provisioning Management Web Services
Application Modeling Network Security
Network Management Server Management Router Network
Makes it more difficult to manage complex and disparate Infrastructures
Increase Demands in Data Protection
Place Security & Compliance initiatives in IT’s Top-10 priorities
Challenges in Managing IT Costs
Business requires: • visibility to what is driving IT costs
• to understand what IT delivers and what it costs the business
• to know that IT leadership can control its costs
IT Leadership must: • understand the cost to deliver a service and what drives that cost
• cost transparency for delivery and support of services
• continually explore cost optimization opportunities
IT must deliver: • products that are disruptive ‘Lights-On’ anytime anywhere
• services with new capabilities and sustainability
• a cohesive and best in class solutions
Make it difficult for CIO’s to justify Budget Increases year after year
Disparate Systems for IT Reporting
General Ledger
& Fixed
Assets Service
Management
Asset/CMDB system
Work/Time Management
Spreadsheets... and other reporting systems
Can often create reporting headaches within the Finance and IT Departments
Costs Transparency for Business Leaders
General Ledger
& Fixed
Assets
Service Management
Asset/CMDB system
Work/Time Management
Bridge the GL (central point of truth) with Technology Services…
Provide the Stake-holders with a Centralized Activity Based Costing System
• ClearCost Corporate • Open offices in Sydney and Gold Coast in 2001
• Is the #1 ITFM/TBM software product in Australia
• Was developed to help IT management “run IT like a business”
– Accurate information on cost of ‘services’ delivered, cost of demand, cost of capacity and forecasting
• ClearCost Consulting • Essential ‘how to’ capability supporting clients directly or
through partners
– Process & practice transition support for IT management/stakeholders
ClearCost Corporate
APAC Industries We’re In
Federal Government
State Government
Territory/Local Government
Water/Electricity Utilities
Finance Sector
Universities
Research Institutes
Media Sector
Manufacturing
Customer Services
Environmental Services
ClearCost Arriving in the US
Opening an Atlanta, GA office in Q4 2015 for the US Market
Installations Goals
• 2015 Two Proof of Concepts (References)
• 2016 Five POC’s (Q1/Q2)
• 2016 Five Enterprise Clients
ClearCost Application Evolution
IT Budgeting
Enterprise Architecture & Benchmark modelling
Business Service Costing
Chargeback
Contract Management
Multi-currency/multi model consolidation
Formal Reforecasting
Utility Computing Infrastructure module
2nd (Technical) Service Catalog
CMDB Integration
Lifecycle Planning
General Ledger Integration
Predictive Demand & Budget Forecasting
10 Year Forecast Demand & Budgeting
Cloud Deployment model
Managed Services
Explorer (Management BI tool)
2001 2003 2005 2007
2009 2011 2014
TECHNICAL SERVICE
CATALOG
CUSTOMER UNITS
ACTIVITIES & COST POOLS
ACTIVITY BASED
DRIVERS
CAPACITY BASED
DRIVERS
DEMAND BASED
DRIVERS
BUDGET & ACTUALS
GL CoA
BUSINESS SERVICE
CATALOG
CAPACITY & DEMAND
BASED DRIVERS
Framework
What we spend
What we do What we deliver
Who uses what
we deliver
Our Service building blocks
Every resource linked to
an activity
Every Activity
linked to a Technical
Service
Every Service
linked to a ‘Customer’
Every Technical
Service linked to an end-Service
ASSETS & CAPACITY
CONTRACT REGISTER
Year One Year Two Year Three Year Four Year Five
Mat
uri
ty L
eve
l Iterative Approach
POC
Use Existing Tools
High Level
Standardize
Training
Governance
Phase 1 - POC
Phase 2 - Walk
Phase 4 - Sprint
Phase 3 - Run
Walk
Invest in Tools
Governance Tightens
Centralize
Build Repository
Run
Invest in Automation
Enhance Reporting
Complete Automation
Improve Disciplines
Sprint
Dashboard Reporting
Align MBO with Delivery
Complete Service Catalog
IT Financial Automation
Refine
Business Unit Data Analytics
Business Management
IT Technical Managers
CIO & Executives
CFO & Finance
Service Managers
ClearCost Explorer Product
BI on Reporting, Metrics and Data Analysis
HTTPS://ClearCost.us/Explorer
ClearCost Explorer
Explorer View
Executive Dashboard…
Activities
Technical Services
Business Services
Business Unit Charges & Consumption
Data Analytics
Spend
Staff / What They Do
Financials
Lifecycle
Contracts
Budget
Metrics
ClearCost Enterprise Product
Managing the Data and Meta Data Locally
Enterprise Application View
ClearCost Enterprise
Operational User Dashboard…
Service Financials Expenses
Activity
Technical Services
Customer Services
Business Unit Usage
Information Analysis Reports
Charts
Data Warehouse
Trending
Operations Functions Assets Capacity
Contract Register
Administration User Authorities
Data Imports / Exports
Dashboard View
Business Services View “CRM”
• It costs $152 per Customer per mth to automate Customer Tracking management
• Almost 20% of the effort/cost is discretionary
• The General Ledger costs contributing to the CRM costs are profiled
• Most of the resources for this are outsourced
• Most of the cost is related to the application support and enhancement
• We can ‘see’ the technical dependencies from the CMDB that drive infrastructure costs
Business Unit View “invoice details”
• Business Units ‘charges’ (usage) per month
• Individual or ‘rolled’ up Service billing
– All Workplace related Services
– Just Workplace Support Services
– Individual Email & Calendaring Service
• Consumption rate/charge basis of Services (volumetric data)
Business Application Catalog View “services”
Chargeback / Show-back View “invoice”
Proof of Concept - estimates
Three Stages are required for the POC Implementation (7 – 10 Business Days)
OFFSITE (2 days)
Data Requests and Data Gathering* (including some phone conversations to clarify what we want)
Data Review & Prep
*Collect the ‘lists’, then a workshop with the list ‘owners’. This creates the relationships and cost allocation flows to produce required Due Diligence outputs (how much IT is used by Business Units an what exactly is used and what technologies are needed and which staff are required.
ONSITE (3 days)
Workshops to fill in core gaps, understand the Data Model requirements, then obtain allocation logic from Managers/Stakeholders
OFFSITE (2 days)
Clean up and obtain any outstanding critical data to complete the model to a reasonable level of credibility. Prepare and present Information Produced (via electronically) the analytics for POC usage.
2-Days
Data Gathering 3-Days
Workshop
2-Days
Clean Up / Validation
6-Months
POC Usage
Data Gathering
Data Gathering (2 Days)
1. Budget details, included Staff and Contracts and Depreciation (if applicable):
2. Platform List (different server types i.e.; Solaris, Windows, ESX. Linux; databases – Oracle,
SQL Server, Postgres, etc…), plus asset details to a point
3. Application List (top 100 or whatever the target Business Units use)
4. Connect the dots, link platforms to Applications, link budget to platforms, link Services to
Business Units (ClearCost in a nutshell).
On-Site Workshops
Data Model ‘Build’ Methodology (3 Days) A. Budget/Financial data
a. Budget (by Cost Centre & Account Code), Staff by Cost Centre b. Actuals per G/L for YTD c. Reforecast for remainder (optional) d. Contracts (dedicated to in scope BU or shared across many)
B. Technologies a. Platform List b. Application List c. Checklist of B(a) to B(b)
C. Business Units in scope counts a. Business Units b. Staff counts (for desktop & road warrior related services) c. PC counts/AD Accounts d. Map B(b) to C(a)
D. Assets a. If dedicated to C(a) b. If shared among BU’s c. Map B(a) to D(a & b)
E. Depreciation (assuming technology comes with the deal) a. Split by B(a) b. Project depreciation?
Complete and Present the Model
Information Produced (2 Days) Total spend on IT translated:
1. How much each Business Unit consumes
2. What each Business Service costs to deliver and what
Technical Services they are dependent on
3. How much is spent on specific technology platforms,
applications, governance, management and project
activities
4. What staff and external contracts underpin which
Technical Services through to which Business Services
POC Pricing Estimates
Estimated Cost
Remote request of information so we can work out gaps before coming onsite. Onsite we have concentration of workshops to flush out more detail or do the allocation/linking. Then we finalize the model and produce analytics. Pricing is based on POC Assumptions and any approved Change Management outlined in the following two slides.
7 days x2 consultants = $40,000
Plus any approved travel expenses from / to Atlanta
License & Consulting Estimates
IT Budget $2m to $10m, with staff of 10-30
$50k scope, 10-30 days for installation & training
IT Budget $10m to $30m, with staff of 30-100
$90k scope, 45-60 days for installation & training
IT Budget $30m to $50m, with staff of 100-150
$120k scope, 60-90 days for installation & training
IT Budget $50 to $100m, with staff of 150-250
$160K scope, 90 days for installation & training
IT Budget $100-250m, with staff of 250-500
$200K scope, 90-120 days for installation & training
IT Budget $250m+, with staff of 500-1,000+
$300K+ scope, 120-150 days for installation & training
Consulting Efforts Include
As Defined in the Scope:
IT operational (expense) budget
Anything else (IT costs outside of IT)?
Activity & Capacity model to be defined
Use our quick start industry standard model
IT Service Catalogue to be defined
Quick Start Technical Catalog (structure & content)
Business Catalog (structure)
Sustainability Framework
Advice/training to support this
Demand profile defined
Administrator Training
Out-of-the-Box Analytics
Standard Outputs: Defensible cost budgets linking the cost of supply to meet the budgeted demand
Costed and priced Service Catalogues (including unit prices)
Performance/Benchmark metrics across the full Service spectrum
Infrastructure Capacity Rates - unit rates for Servers & Storage
Chargeback (or Show-back) to Business Units
Budget generation – multiple options (based on Demand, Current forecast, predictive forecast, cost trends etc…)
Contract Management, Lease management
Re-forecasting & variance analysis (from finance (GL) to demand)
Expense and demand Forecasting (up to 10 years)
Scope of Work Assumptions
Assumptions
CLIENT will provide access to Subject Matter Experts (SMEs) and resources that are required for the IT assessment.
CLIENT will coordinate access to business stakeholders that are required for the interview phases of this assessment.
CLIENT will ensure requirements and other ClearCost deliverables are reviewed and signed-off in a timely manner by employees of the appropriate level.
CLIENT will provide ClearCost resources office space for staff as needed, including a phone and Internet connection (either LAN or phone line), conference rooms for meetings/workshops, and access to building areas necessary to complete this project.
CLIENT will provide ClearCost consultants with timely access to technical information and environments.
ClearCost is not responsible for any product that is not provided by or any task that is not performed by ClearCost consultants.
All Discovery and Planning work will be performed during normal business hours (8:00 am to 5:00 pm local time), Monday through Friday, except holidays. Time and half will be charged for work performed after 5:00 pm if needed and approved.
ClearCost shall commence work under this SOW on a mutually agreeable date after receipt of a fully executed SOW and PO, if required.
ClearCost reserves the right to use subcontractors in any role within the Service where ClearCost deems appropriate.
The tasks and deliverables described in this SOW will be deemed accepted by CLIENT upon delivery.
ClearCost reserves the right to terminate the contract with prior notice due to non-performance by CLIENT of responsibilities stated above. All services fees and expenses incurred to the date of termination will be invoiced as occurred.
If security clearances are required, CLIENT will coordinate all security clearances for ClearCost personnel prior to each project engagement.
In the event that Service is delayed, CLIENT will be responsible for payment of additional fees and out-of pocket costs incurred by ClearCost.
Out of Scope Efforts
Change Control for Changes or Additions
Should project objectives or requirements exceed the defined deliverables identified in this Statement of Work, all parties will utilize the Change Control process to refine additional time, cost, and schedule impact to meet proposed workloads/deliverables and time frames. As such situations occur, each change will be documented, and if such change is deemed to alter the time required to complete the project or its cost, the change will be acknowledged by both parties, and the cost and or time estimates updated accordingly by both parties’ acceptance. All noted changes must be formally accepted prior to executing the change.
Requirements, working papers, project plan documents, and Change Management Requests will be kept in accessible electronic location for review.
Steve Middeldorp Founder & CEO ClearCost Sydney Australia Phone +61.414.506.749 [email protected]
Mark S. Mahre Managing Partner ClearCost US Atlanta Georgia Phone +1.678.641.0390 [email protected] @Mahre11