Price Paid for Enterprise IT?

• How is the price calculated in your organisation?

• CAPEX + OPEX Model?

• Subscription Model?

Is this a good way to cost IT services?

Perceived Benefits

• In your organisation … are the benefits linked to the cost?

What happens if?

Perceived Benefits

Perceived Costs

Consequences

Reduced investment in new IT

Reduce Costs (headcount, tools, sourcing models)

Reduced Service Levels

Negative Reinforcement Loop leading to …outsourcing??

Simple right?…. But what about that bit about

“complex systems”

“System”

a set of things working together as parts of a mechanism or an

interconnecting network; a complex whole

System Complexity “+”

Hardware +

Software ++

Human ++++

So, how can we make IT costs more transparent?

More importantly who can make complex system costs more

transparent?

How?

• Model everything as a service

• Make every service a P&L• Capex = Monthly

Depreciation Charge• Opex =

• Direct Costs • Labour

• Services

• Indirect Costs• Supporting/Shar

ed Services

• Key Principles• Cost “Inheritance”• Standard interfaces (see

Tom Grave’s Ent Service Canvas)

• TBM & ATUM

What it will look like to the customer …

We need to figure this out for digital age systems!

• Menno, Tom & Charlie

Big Picture View

• Tim, Mark, Damian, Paidi

Real World Disruption

• Richard, Angela, Piaras, Eamon

Cost Transparency Primer