IT Financial Management

>IT Financial ManagementA BearingPoint Accelerator

As the IT footprint expands in the organization, CIOs budgets keep growing, some having multi-billion annual budgets in the case of large organizations. CXOs require CIOs to provide cost transparency, control, as well as cost optimization and e�ciency.We o�er a unique combination of consulting service and an application to enhance your visibility on IT costs and ease communication.

ContentsMarket Drivers

Our Approach

Client Benefits

References

Contact

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >

IT Financial Management | A BearingPoint Accelerator


Market DriversThe CIO paradox: growing IT budgets, but often insu�cient cost control• Business units demand cost transparency and want a greater say in influencing their IT cost baseline.• IT costs are perceived as a black box and not directly linked with the business KPIs.• Given the likely mix of legacy and cloud-based solutions, CIO need to deal with an increasingly complex IT budget that

requires improved cost management solutions and processes.



Market DriversIT Costs are either a black box or a complexity nightmare – need for a solutionFinance & Corporate Controlling Landscape

Corporate Finance• Financing • Rating, valuation• Mergers & acquisitions • Ledger• Financial risk management• Reporting

Corporate Controlling• Reporting• Strategic planning• Project and investment controlling• Budgeting• Accounting / billing• Risk management

IT Department - existing tools/systems (partially integrated)

• Project portfolio management• Service portfolio management• Contract management• Resource management

• SLA repository• Service catalog management• Asset management • Configuration management

• IT Performance Management• IT Cost Management• Capacity Management• Supplier Management


Comprehensive IT Finance Management Tool

Our ApproachWe o�er a unique combination of consulting service and an application that enable you to significantly optimize your IT Financial Management (ITFM) function.A highly skilled team, mixing IT consulting and financial competencies

• with excellent client credentials• using a proven project methodology

Powered by a user friendly tool to provide budgeting, costing and billing solutions…

...web-based and built with innovative technologies……rapid to implement and configure



Our Approach



Maturity Assessment Optimization Implementation

We asses the maturity of your current setup to tailor the approach to your individual needs

We optimize your existing processes and tools, and we reduce complexity to make them more valuable to you

We implement a tailored financial management solution leveraging BearingPoint’s own IT financial management software or a 3rd party application

Resource 1Value: 3€

Activity 2Value: 3€

Activity 1Value: 13€

Technical Service 1Value: 16€

Technical Service 2Value: 7€

Service 1Value: 23€

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ProjectPortfolio

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Services PricingCost Allocation

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“StrategicPlanner” Leading

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“PerformanceManager”

“Enabler”

IT planning & costing- time consumption

IT planning& costingcapability

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excellent

finalgoal

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Our ApproachBearingPoint IT Financial Management application is accessible from project Day 1 and can be integrated within your IS landscape for mid and long term usages.



Collect• Shared data: no more

consolidation• Collaborative tool:

workload distributed • Stored data: one single

version of the truth

Design• Pre-configured with

BearingPoint and market framework

• Model independent: integrates your own model easily

Validate• Track updates and manage

rights • Audit and understand cost

origins: Tree based reporting

Report & communicate• Multi-dimension reports• Shared across the

organization: multi-language

• Interactive comparisons

Client BenefitsObtain quickly, with a limited investment (in terms of man-days and cost) an extensive view on IT department costs ensuring:

• Clear understanding of IT costs Follow-up and control by modeling and measuring costs of resources, projects, applications and services (build & run activities)

• Better communication with CFO, CEO and business units From a standard breakdown by nature and cost center, to a management understanding through multi-dimensional reporting

• Optimized costs through benchmarking Based on a standard IT framework, we o�er extensive internal & external benchmarking possibilities

• Transparent IT expenditure billing to business units Using work units and transparent drivers relationship with business are facilitated



ReferencesLuxury company



Financial Performance ManagementBearingPoint client decided to set-up a new organization at corporate level in order to deliver IT services. To address this new scope and to support growth, this new organization has to refine its model in terms of delivery and management processes (including financial management processes).

Business needs

The group started transforming its IT management model in order to consolidate and optimize IT services and to allow brands to focus on their own core business

Di�erent processes, models and tools were used by brands’ former IT departments

Project’s main objective was to define common financial processes (budgeting, execution and chargeback), model and tools

Our approach

As-is assessment (technology, process and organization) and brainstorming to define target financial management key principles

Design key processes: budget elaboration, cost execution and follow-up, pilot and control, IT service chargeback and catalog mgt.

Definition of master data align with management needs for reporting

Catalog design, service cost, chargeback model• Harmonized billing work units and chargeback

principles • Cost model principles

Target financial tool scenarios

Client’s results

A share IT budget process for all countries and regions in line with purchase order validation process

A common way to pilot and control all IT expenditures at group level

A new economic model to support service catalog and associated chargeback principles

ReferencesLeading Global Insurance Company



Design of an IT cost allocation and budgeting modelBearingPoint supported the client to design and implement an optimized IT cost allocation and budgeting model (IT operational planning, IT finance planning)

Business needs

A major transformation from a technology-based operation to a service-based organization confronted the client with several challenges:• Out-dated service definitions: disconnect between

business view (demand) and IT view (supply)• Current cost allocation model did not correspond

with new delivery model• Opaque and inflexible cost structure to respond to

fluctuating demand• Cost allocation was opaque and not based on real

use

BearingPoint was asked to support the client with the development of a new IT service costing framework

Our approach

Revision of IT service catalog• Clean up of existing service catalog• Separation of IT service (business) view and IT

product (delivery) view• Bundling of IT products to IT services• Development and implementation of a new

governance layer for IT service management

Design of new cost allocation model• Definition of planning elements, principles and rules• Development of allocation principles; applied

sign-o� distribution keys• Collection of total cost and re-allocation according

to new model

Rollout of a new planning and budgeting process

Client’s results

Operational planning, financial planning and controlling are based on an agreed service catalog

Cost drivers can be identified and optimized

High transparency of personnel resource utilization:• Over and under-utilizations are visible

Consistent budgeting process• Transparent cost allocation

Consumption-based charging, flexible response to fluctuations in demand

Increase in understanding of business needs, e.g. higher service levels during contract renewal season

Matthias RoeserPartnerBearingPoint [email protected]

ContactElisabeth DennerPartnerBearingPoint [email protected]

Jérôme MartinPartnerBearingPoint [email protected]

CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT<


About BearingPoint

BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com

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IT Financial Management

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