IT Cost Transparency is much more than IT Financial Management
RAPA has extensive experience helping customers tie the cost of specific activities to the services IT delivers to customers. This is a complex task.
IT cost transparence is evolutionary – relying upon trusted, traceable, accurate and truthful information. RAPA helps clients establish and sustain an IT cost transparency reporting capability so that stakeholders are able to understand what their costs are and what value is resulting from those costs.
It is important to find cost objects that strike the right balance between granularity and ease of long term management, based on current organizational capacity and capability, and always with the ability to adapt in the future.
Costs can be attributed directly; those that can be easily connected to a business system for example, indirectly; those that are not specifically associated to a single System and have to be attributed (or blended) in some way and general; those costs that are split evenly across IT.
It is imperative to understand, evaluate and plan for the effort to capture the required level of cost information so that your IT organization can measure if the cost/benefit is worth the effort. Continuous improvement of IT cost transparency capabilities are critical.
Download our Service Based Costing whitepaper.
As a first step, RAPA audit’s IT Financial Management and cost reporting capabilities. Based on a clear understanding of IT’s current state of cost transparency reporting that the audit delivers, IT Programs are then designed, development and implemented with the ongoing responsibility of producing measurable business benefit. Contact RAPA to improve your IT cost transparency reporting.