In these uncertain economic times, IT leaders must deliver the services business partners depend on while self-funding cost-cutting mandates. It’s a delicate balance.
From prioritizing current IT spend, to ring-fencing key IT services from cuts, organizations need a strong financial foundation to make data-driven decisions. A corporate finance mandate to re-plan and cut spend for the remainder of the year is going to be painful. But IT leaders do have options. Whereas corporate finance may see every IT dollar as being equal to any other, IT leadership knows the truth—some IT spend works “harder” than others. A strong IT financial management solution helps that spend work as hard as it can.
In the good times, an IT financial management (ITFM) solution may feel like a luxury; in these times, an ITFM solution is critical. A robust, automated ITFM solution analyzes IT spend within an IT context (e.g., labor, vendor, cloud, asset, and project spends). Context is king—knowing where spend is going and the initiatives it’s supporting is the path to cost optimization, accelerated planning, and defensible benchmarks with industry peers.
Not using the right ITFM solution for your IT spend can lead to arbitrary cost-cutting that impacts the entire organization. Let’s look at the top 5 things you lose without an ITFM solution
There are 5 things you lose without an ITFM solution:
- Hidden insights
- Self-funded cost-cutting
- Alignment with business priorities
- Opportunities to optimize costs
- Time and resources
This article looks at first thing you lose without an ITFM solutions—finding IT context in your plans and acting.
IT Finance manages a lot of data for budgeting and forecasting processes. That breadth and depth of data multiplies the amount of time, effort, and analysis needed to discover what’s meaningful. This can lead to missed opportunities to cut costs, avoid spend issues, and minimize financial risks. Uncovering insights from your IT Finance data without a proper ITFM solution is not only difficult but also very time-consuming.
Apptio’s IT Financial Management solution automates the extraction and delivery of value from your IT Finance data and helps track value realization from these opportunities.
Apptio automatically uncovers opportunities to cut costs, reduce risk, and improve data, dramatically reducing the time it takes to analyze and validate findings and potential benefits. And once you validate the actionable insights, Apptio’s platform helps you create and manage those actions, set targets, and track progress.
“Our budget variance is more predictable than in prior planning periods, before we used Apptio. For example, last year our variance on software and hardware repair and maintenance costs was 9% off from budget, while this year we are trending at 4%. The granularity at which we can budget and review our actuals prevents planning misses,” said Linda Schmitz, Sr. Director of Financial Planning & Analysis, Caesars Entertainment.
Read this guide to learn about how having an IT Financial Management solution will help cost optimization opportunities by self-funding the cost cutting by keeping it aligned to the business priorities.