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Manage IT Budgets & CostWorld Class Operations - Impact WorkshopInfo-Tech Research Group#1Beyond Practical Research Workshops Get You To ResultsWorkshops: Leverage Best-Practices Research & Get to Action

Unlike other Research firms, we believe its important to help our members implement improvements. An on-site 40-hour workshop, which allows you to make systematic improvements to your core processes. Workshops are designed to help focus attention, create alignment, and ensure best practices are put to work at your organization. Our workshops help you get to immediate impact and results, and are tailored to your situation and needs.

Workshops: Focused on You Implementing Improvements

The goal of each Capability Optimization Workshop is to create tangible benefits and clear improvements as a direct result of the workshop.Specific deliverables, goals, metrics, and outcomes are established for each workshop.Successful workshops will leverage Info-Techs years of analyst experience and written research, to provide an engaging experience that focuses on implementing and getting to measurable results.Each workshop begins by diagnosing the current state, and then focuses on designing high-impact improvements based on best-practices research.Three & Six Month follow-up will occur to ensure benefit realization.

Info-Tech Workshops provide the best-practices and implementation support necessary to help an IT leader build a World Class IT Operation

Capability Optimization WorkshopDiagnose Current StateRight-sizing ProcessProcess DesignMeasuring Benefits Implementation SupportInfo-Tech Research Group#Immature or poorly executed IT budget and costing causes:

Wasted investments in non-critical IT initiatives.Inability to secure funding for important projects.Low levels of business satisfaction with IT service and performance.Poor visibility into IT resource usage amongst the organization.Large variance between budgeted and incurred costs.

A formalized IT budget and costing process results in:

Specific criteria for assessing the relevance of IT investments to business objectives.Documented and prioritized list of IT initiatives for the coming year.Rigorous evaluation of the benefits and costs of upcoming initiatives, relative to corporate objectives.Increased alignment and support from the business.Increased budget availability.What is IT Budget & Costing?A formal process for managing IT spending to ensure alignment of IT services with strategic business objectives.Info-Tech Research Group#3Workshop Schedule & Core DeliverablesNameGoalCore DeliverableDay 1Manage Finance and AccountingDefine and understand the financial and accounting processes in the organization. Financial and Accounting Process OutlineDay 2Prioritize Resource AllocationEstablish a process for prioritizing IT resources to create a list of the most critical new initiatives for supporting the organizations strategic goals.Project Prioritization Process and ToolBusiness Case TemplatePoints Tracking SystemDay 3Create and Maintain the IT BudgetImprove the current IT budget process to build a more formal IT budgeting document and plan.Budget Evaluation Process

Day 4Create a Cost Allocation SystemEstablish a cost allocation model to identify, measure and predict IT resource costs with calculations and workflows.Cost Allocation Process and ModelCost Management StrategyDay 5Manage IT Costs Identify areas that are successful and those that need to be adjusted in order to optimize the budgeting process.Cost Optimization StrategyInfo-Tech Research Group#4Day 1: Manage Finance & Accounting1.1 Review High-Level GoalsDiscuss agenda and complete introductionsReview reasons for undertaking this processFamiliarize the group with the final deliverables1.2 Collect DocumentationGather financial informationUnderstand the organizations processes for budgetingReview Organizational budget deadlines, reporting, responsibilities, and IT chart of accounts1.4 Define High-Level Financial ProcessDefine current processes for budget planning, resource allocation, cost allocation, and cost optimizationOutline high-level roles and responsibilities for the current process1.3 Determine Stakeholder Budget GoalsDiscuss overall goals of the IT budgeting process to address pain points, alignment, funding, and the current approachInfo-Tech Research Group#Day 2: Prioritize Resource Allocation2.1 Uncover Issues & Opportunities Whiteboard the current process for prioritizing IT-related projectsAssess and discuss where improvements can be made to the current process2.2 Decide on a Process for PrioritizationEstablish responsibility by creating a committeeDecide on a procedure for collection and sponsorshipDefine thresholds for projects to be reviewed by committee2.3 Decide on a Points Tracking SystemDecide if a points tracking system is beneficialCreate a points tracking systemCreate an IT steering committee to govern points trackingDevelop criteria to right-size and improve business casesEstablish how cost cutoffs will be determined for initiatives Develop criteria to ensure business alignmentCreate a process for ranking projectsDecide on communication and review process for ranked initiativesDecide on a process for incorporating changeDecide on a budget submission process Info-Tech Research Group#Day 3: Create & Maintain the IT Budget3.1 Identify Issues & OpportunitiesDiscuss the current budget process and identify where improvements can be made 3.2 Manage Budget Decision MakersEstablish responsibility for each step in the processAlign Expectations with budget stakeholders3.4 Document & CommunicateDetermine how the budget will be documentedDetermine how the budget will be communicated to IT and the CFO3.3 Build the BudgetCapture committed IT spendCapture approved project estimatesDecide how the budget will capture workload and staff size requirements Decide how the budget will capture IT initiativesDecide how contingency funds will be allocatedInfo-Tech Research Group#Day 4: Create a Cost Allocation System4.1 Evaluate Need for a Cost Allocation ModelDiscuss the organizations current state of allocation 4.2 Decide on a Cost Allocation ModelRight-size a cost allocation model for the needs of the organizationDetermine a timeline for review 4.5 Communicate the Cost of IT UsageDetermine how IT usage will be communicated with stakeholdersDetermine how changes will be implemented to the system4.3 Conduct a Historical Study of IT UsageTake a snapshot of historical usage for departments and servicesAnalyze trends and current usage patterns to identify areas of change4.4 Create an Improved Capture SystemAnalyze the current cost capturing systemDetermine necessary changes and opportunitiesIdentify Issues and Opportunities with the current systemAscertain the need for and interest in allocating IT costs Analyze the effectiveness of the current IT chart of accounts in relation to the modelDetermine business unit accountabilityInfo-Tech Research Group#Day 5: Manage IT Costs 5.1 Discuss Goals & IssuesDiscuss issues and opportunities in managing IT costsEstablish goals for managing costs5.2 Create a Cost Management ProcessOutline roles, timelines, and metricsCreate a cost analysis process to identify and address significant budget variancesOutline a benefit realization process to capture true benefits of initiatives5.3 Optimize CostsDiscuss the need for a procedure for reducing and optimizing costsDiscuss budget and cost reduction targetsDefine the reporting methods for cost and benefits analysisDevelop a strategy for IT cost cuttingInfo-Tech Research Group#Client TestimonialsThe twists and turns that the workshop took to personalize it to us, exceeded my expectations, and we actually ended up overall exceeding because we created things that I hadnt anticipated doing.

-University

I thought there was a real product delivered out of this week... that, longer term, could mean significant improvements for us.

-University

Info-Tech Research Group#10

IT Budget Workshop Primary Deliverable:Best Practice Approach to IT Budgeting Customized to your ProcessBuild a system that is transparent and repeatable, and utilize it each year.Align resource allocation with organizational strategy and goals.Promote IT as a partner in the business, instead of as a cost center.Establish a right-sized process for tracking the achievement of costs and benefits, as outlined in business cases, over time.

Project Prioritization Process and ToolAssess and Right Size Your Business CaseEstablish a Cost Optimization Strategy

Info-Tech Research Group#11IT Budget Workshop Core DeliverablesEight Key Deliverables will be completed during the Workshop:Financial & Accounting Process OutlineDefine and understand the financial and accounting processes in the organization. Outline goals, processes, responsibilities, and timelines.

Project Prioritization Process and ToolComplete a full walk-through of the decision making process and create a draft process manual for prioritization detailing best-practice activities.Align resource allocation with organizational strategy and goals.

Business Case TemplateReview all proposals through a standard business case template.Right-size the business case template or co-design a template with an ITRG analyst.

Points Tracking SystemCreate a points tracking system and steering committee for smaller initiatives.

1234Info-Tech Research Group#IT Budget Workshop Core DeliverablesBudget Evaluation ProcessComplete a full walk-through of the budget process and create a draft process manual detailing best-practice activities.

Cost Allocation Process & ModelCreate a cost allocation process, which includes a right-sized cost allocation model, an updated method of classifying costs, and an optimized cost capture system.

Cost Management StrategyEstablish a right-sized process for tracking the achievement of costs and benefits as outlined in business cases over time.

Cost Optimization StrategyComplete a full walk-through of the process for optimizing costs, and create a draft process manual detailing best practice activities.

5678Eight Key Deliverables will be completed during the Workshop:Info-Tech Research Group#13

Manage IT Budgets & Cost Workshop:Built on World Class Research, Experience, and StandardsResearch ProcessCOBIT DrivenGrounded in open international standards.APO06 Manage Budgetand Costs.Team with over 30 years experience.Over 2,800 hours of research.Based on primary and in-field research.

Tools & TemplatesProcess GuideInvestment Mix VisualizationBusiness Case AssessmentBusiness Case PrioritizationPoints Tracking SystemMilestone ReportPortfolio Metrics EvaluationBenefits Summary & Analysis

139 page Research Report19 in-depth activities and exercisesAbility to accommodate 100 of your top projects

Info-Tech Research Group#