Taking Control of IT Costs
A Business Managers Guide
Published on 6. January 2000
Book
Paperback/Softback
224 pages
978-0-273-64943-4 (ISBN)
Description
Information Technology is one of the major costs for businesses in the 21st Century and yet it is allowed to operate without the usual cost controls imposed on other departments. The last few years have seen huge investment in IT with the lead-up to Y2K, the explosion of e-business and the increased dependence on IT business systems. But is it delivering the goods? It is hard for senior management without specialist IT knowledge to judge the value of IT spend. As we enter a period of economic slowdown, managers need to increase their efforts to manage costs. IT can no longer expect to be exempt.
Senior managers will find this briefing an invaluable guide to imposing normal cost discipline on IT spend - within the IT department or elsewhere - without the need for technical knowledge of IT. IT managers will also find it useful in implementing their own cost management programmes.
Contents include:
The opportunity and rewards of managing IT costs
Outline of a project to manage IT costs
Guidelines on implementing tasks
Cost allocations and their effect on real costs
IT strategy review
Outsourcing, ASPs and Internet in IT cost management
Senior managers will find this briefing an invaluable guide to imposing normal cost discipline on IT spend - within the IT department or elsewhere - without the need for technical knowledge of IT. IT managers will also find it useful in implementing their own cost management programmes.
Contents include:
The opportunity and rewards of managing IT costs
Outline of a project to manage IT costs
Guidelines on implementing tasks
Cost allocations and their effect on real costs
IT strategy review
Outsourcing, ASPs and Internet in IT cost management
Reviews / Votes
"In most businesses in which I have been involved throughout my auditing career there has been a certain mysticism attached to IT. Even in this modern age there are many managers who continue to regard a computer as a magic black box. Where they have learnt how to switch a pc on, there are not many who hand on heart understand the technology. Nor should they be expected to. And yet not many of these same managers would dream of entering into a major capital project without a full cashflow analysis or establishing a project management programme. The IT department in any business is a key part of the undertaking. But it can easily become a bottomless pit. Instead of adding value to the business it can fast become a runaway cost. Taking Control of IT Costs is an excellent model for the layman to get to grips with the pitfalls. "Colin Harris CA (SA), Director of Internal Audit & Business Continuity, St. John Ambulance, London
More details
Language
English
Place of publication
Harlow
United Kingdom
Publishing group
Pearson Education Limited
Target group
College/higher education
Dimensions
Height: 234 mm
Width: 189 mm
Thickness: 13 mm
Weight
430 gr
ISBN-13
978-0-273-64943-4 (9780273649434)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Person
Sebastian Nokes has been a senior manager and management consultant in the IT and Financial Services industry for the past 15 years. In this time he has worked for IBM and Credit Suisse First Boston. He led major projects in a number of global companies and increased their IT efficiency by 30% while simultaneously reducing costs by 50%. Familiar with the Internet since 1989, he has used it to increase IT and management efficiency across a broad range of organizations. He recently headed a project with heavy Internet involvement, the results of which saved $23m and improved performance.
Content
Introduction
1 A problem for business management?
Introduction
Projects go over budget and over time
New systems fail to meet user functionality expectations
Reliability
New systems work OK but destroy existing structures
Summary
2 An IT expense healthcheck: three tests to check quickly how well your IT department is managing its costs
Aim
Introduction
Healthcheck 1: key performance indicators (KPIs)
Healthcheck 2: standardization/variety test
Healthcheck 3: inspect the physical IT assets
Summary
3 Cost allocations: what they are and why they matter
Introduction
What are cost allocations and why do they matter?
How do cost allocations work?
The major categories of IT cost and how they are allocated
The four most common IT cost allocation principles
How to reduce your IT cost allocations
Summary
4 Starting to increase IT cost efficiency
Introduction
Focus
Tactical/short-term IT cost-efficiency initiatives
5 Key performance indicators and benchmarking
Key performance indicators (KPIs)
Benchmarking
Practical steps to implementing KPIs and benchmarking
Implementing benchmarking
A word of caution: Baldrige syndrome
Conclusion: key points of KPIs and benchmarking
6 IT strategy
Aim
Introduction
The four main elements of contemporary IT strategy
Appendix A: Review of accounting: rationaIe, terms and tools
Appendix B: A structure of typical principle IT costs
1 A problem for business management?
Introduction
Projects go over budget and over time
New systems fail to meet user functionality expectations
Reliability
New systems work OK but destroy existing structures
Summary
2 An IT expense healthcheck: three tests to check quickly how well your IT department is managing its costs
Aim
Introduction
Healthcheck 1: key performance indicators (KPIs)
Healthcheck 2: standardization/variety test
Healthcheck 3: inspect the physical IT assets
Summary
3 Cost allocations: what they are and why they matter
Introduction
What are cost allocations and why do they matter?
How do cost allocations work?
The major categories of IT cost and how they are allocated
The four most common IT cost allocation principles
How to reduce your IT cost allocations
Summary
4 Starting to increase IT cost efficiency
Introduction
Focus
Tactical/short-term IT cost-efficiency initiatives
5 Key performance indicators and benchmarking
Key performance indicators (KPIs)
Benchmarking
Practical steps to implementing KPIs and benchmarking
Implementing benchmarking
A word of caution: Baldrige syndrome
Conclusion: key points of KPIs and benchmarking
6 IT strategy
Aim
Introduction
The four main elements of contemporary IT strategy
Appendix A: Review of accounting: rationaIe, terms and tools
Appendix B: A structure of typical principle IT costs