Steve KatzPrincipalIT Transformation ServicesIselin, NJ+1 732 516 4598 (office)+1 973 809 5813 (mobile)steve.katz1@ey.com

Pete HidalgoSenior ManagerIT Transformation ServicesTampa, FL+1 973 223 5616 (mobile)pete.hidalgo@ey.com

Client industry Client need EY value delivered

Media and entertainment

A large global media conglomerate needed help establishing ITFM processes and creating an Enterprise Technology service catalog for its newly established IT shared services organization.

► Designed a comprehensive, business-facing IT service catalog that included service performance levels for each service

► Developed a monthly service usage-reporting process and reports for all IT services

► Created an IT-specific chart of accounts to align costs with services

► Built a service-cost model and calculated actual unit service costs

► Designed a service-cost allocation model covering 26 services and 7 business divisions

Advertising A large global advertising firm needed to assess its ITFM process maturity and develop a detailed plan for improvement.

► Determined current and target ITFM maturity levels► Developed a detailed gap analysis ► Created 16 improvement recommendations► Designed a comprehensive ITFM data and system-end state

architecture► Provided an executable and prioritized recommendations

roadmap

Pharmaceutical A large global pharmaceutical company needed to improve IT costtransparency and develop an end-state ITFM data and system architecture.

► Assessed the current state of ITFM processes within its Information Technology Shared Services (ITSS) organization

► Developed unit service-cost model and benchmarked to the market, identifying millions in potential annual savings

► Designed ITFM data and system-end state architecture

Broadcasting An international television broadcast network needed to address its fragmented ITFM processes, lack of cost transparency, no service definition nor usage reporting, and an ineffective cost allocation process.

► Performed a current state cost and operational assessment of existing IT function and ITFM processes

► Designed, developed and supported the launch of a comprehensive IT-service catalog for the newly formed IT shared services organization

► Defined and documented key ITFM processes► Developed an IT service-cost model► Identified significant potential reductions in annual IT operating

costs

Recent EY client success stories

Contacts

IT financial management journeyErnst & Young Perspectives

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► Increase the value received from IT► Make sure IT is supporting the business strategy► Measure and manage IT appropriately

► Use IT to improve the business► Have a common language for communicating with IT► Make IT a part of the team

► Demonstrate the value IT provides to the business► Secure the resources IT needs to deliver results► Have a place at the executive table ► Have a common language for communicating with business leaders

CEO/CFO

Senior business leaders

CIO/Senior IT leaders

Stakeholders Stakeholder priorities for IT

To overcome many of these challenges, EY has developed the ITFM journey

Current challenges faced by clientsWe often find that there are multiple executive level stakeholders with varying needs and priorities for their IT organizations that must be understood and addressed.

Step 1 Current state assessment

Step 2 Service definition

Step 3 Unit service

costing

Step 4 Metrics and reporting

Step 5 Chargeback model

Step 6 Bill of IT

► Transparency► Cost efficiency► Customer

satisfaction

The EY IT Financial Management (ITFM) journeyEY’s ITFM journey provides a clear and easy-to-follow path to enable the delivery of cost-effective services to the business, improve transparency and increase satisfaction.

Ste

p 1

of y

our

ITFM

jour

ney

is t

o un

ders

tand

whe

re

you

are

and

whe

re y

ou

need

to

go

Collect data, conduct interview and perform benchmarking

1. Data collection and analysis

Analyze gaps, assess maturity and identify savings opportunities

2. Assessment

Value High

Deta

il an

d Co

mpl

exity

Low

High

1Cost

Center

Defe

ndin

g co

stAd

ding

val

ue

2 Commodity

3Utility

4Advisor

5Business Partner

Sample deliverables

High

Bene

fits

and

Tran

spar

ency

Low

High

1 Overhead Allocation

2Flat Fee

3 Consumption

Based

4Incentive Based

5Service Based

6 External Pricing

7Value Based

Pricing

Implementation Complexity

# IT Category Observations Gap Gap

Severity

20 IT FinanceIT finance processes are performed on an informal basis with limited documentation

• Inconsistent processes lead to negative outcomes, such as not identifying expense items

Medium

21 IT Finance Capex budget updates are not done on a real time basis

• Updated budget reports are not readily available which negatively impact cost management

Medium

22 IT Finance All IT spend is not centrally managed by GroupM WW IT

• No consolidated view of IT expenses can hamper effective cost management

Medium

23 IT FinanceApptio is not being utilized to perform service costing and chargeback

• Not realizing the full benefits of the Apptio platform to understand and effectively manage costs

Medium

24 IT FinanceFinancial systems are not connected between the US and UK organizations

• No consolidated view of IT costs leads to inefficiencies in data analysis for management decisions

Medium

25 IT Finance There is limited use and reporting of IT financial metrics

• A lack of metrics can lead hinder good management decisions Medium

Gap analysis

4.2%

5.5%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Industry Average GroupM

► The pie chart below represents 90% of the OPEX expenses included in the “Personnel” category.

► largest personnel expenses are:► Staff Salaries► Employers Social Taxes► Travel Staff salaries

Employers social taxes

Travel

Inter-company time of staff

Short-term incentive bonus

Inter-company personalcosts rechargesPensions - definedcontribution schemes

Total = $XM

Benchmark report

Low Medium High

Low

Mediu

mHi

gh

Comp

lexity

Priority

Low

High

Value of Initiative

15

1 14

12

13

9

3

11

8

5

2

10

716

6

4

2014Jan Feb Mar Apr May Jun

1. Establish ITFM group

2. Develop IT service catalog

3. Create CMDB in ServiceNow – in progress by GroupM

4. Implement time tracking in ServiceNow

5. Design an IT chart of accounts

6. Design & implement IT Service Costing in Apptio

Roadmap

# IT Category* Recommendation Description Priority Complexity Duration (Months)

Potential Annual Savings

Value Index

Client Resource Reqmts.

1 IT FinanceEstablish an IT Financial Management

group with well defined and documented roles and processes

H L 1.5 NA 95% 2

2 IT Services Develop a business facing IT service catalog H M 2 NA 93% 3

3 IT Services Implement a CMDB in ServiceNow H H 5 NA 86% 3

4 IT Services

Implement a standard time tracking process for all of WWIT employee's time using ServiceNow, which will also track

time for each service.

H M 3 NA 94% 3

* Note: IT category is based on departmental responsibility

4 16Core Issues Identified Recommendations

$4.2 - $7.8MM

Apptio• Service Costing• Bill of IT & Datalink

ServiceNow• Time Reporting• CMDB Configuration

and Asset Management

Increase Tool Utilization

Lack of service cost transparency

• No service catalog• No consumption reporting• Service costs not known• Minimal chargeback

Process Immaturity• Lack of documentation• Absence of metrics /

measurement and reporting

Low Degree of Automation • Spreadsheet based• Manual processes• Disparate systems

Lack of IT financial data accuracy & clarity

• Costs not aligned with services

Core Issues Identified How will EY help you get there? The Benefits

• Improved customer satisfaction via well defined services

• Transparency into costs and consumption

• Increased efficiency through better resource management and standardized processes

• Lower costs via more efficient service consumption, which can be redeployed to fund improvement initiatives

• TEM & Chargeback provide increased visibility in IT expenses driving efficiencies

Collaborative team with deep expertise in ITFM and PM

Executable roadmap with detailed recommendations

Leading practice architecture, templates and accelerators

Annual Savings

Recommendations

Develop recommendations and roadmap for improvement

3. Develop recommendations

Step 1: ITFM assessment overviewEY’s eight-week approach provides clear objectives, activities and practical recommendations that can be rapidly implemented.

Benefits realized from Step 1► Understand the IT cost baseline, benchmark position and ITFM process maturity levels► Identify actionable savings opportunities ► Have detailed recommendations and an executable roadmap for improvement

Why EY► EY’s collaborative culture, experience and depth of knowledge in ITFM

uniquely positions us to help today’s IT organizations overcome their ITFM challenges.

► EY has a proven approach with a long track record of success.

► We have the ability to seamlessly integrate with client teams to get the work done with minimal disruptions.