The World of IT Financial Management

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1 The World of IT Financial June St. Louis, MO

2 IT Asset Best Practices Seminar

3 Dilbert on Cloud Decision-Making 3

4 What experience do we have in the room? Name Company / Agency How many years experience in IT Asset? Technical or financial Why are you attending this seminar? Do you have any specific issues or challenges? 4

5 What experience do we have in the room? Financial 7 Technical 1 IT Finance Experience Issues you wish to discuss: C/B Issue Merger Software License ITAM Experience - Cost major point of ITAM What are others doing? 5

6 LET S DEFINE IT ASSET MANAGEMENT 6

7 What is it? Hardware Software Maintenance Licensing Procurement Own / Lease Disposal Replacements Security Contracts Help Desk Service Calls 3 rd Party Relationships Depr / Amortizations Chargeback Warranties 7

8 What are we trying to achieve? Maximize the value of our assets Save money 10

9 What are the Critical Success Factors? Document the process Effective process flow Reduce incidents Reduce theft 11

10 ITAM What has not worked? Silo solutions Excel spreadsheets Lack of a plan Lack of vision Not understanding: Scope Definition of ITAM Asset TCO No SLAs 12

11 ITAM What has worked? Intern tracking incoming assets Good ITAM definition Good ITAM documentation Workflow management Good processes Asset knowledge 13

12 ITAM Best Practices Myth or Real? BETTER Practices 14

13 Let s Build a BETTER ITAM What do we need? Standards Process Value Analysis support 15

14 High Level Support Technical CIO Financial - CFO Must demonstrate that: Cost Today Cost Tomorrow = Savings! 16

15 ITAM Philosophy What is the Vision? What is the Mission? What are the measurable objectives Critical Success Factors? 17

16 ITAM Software Configuration Database Workflow Service Discovery Tools 18

17 IT Asset (ITAM) Is a total life-cycle strategy for optimum acquisition, installation, operation, and maintenance. Asset management links availability, capacity, and operating and maintenance costs to business objectives. 19

18 IT Asset is: The discipline of managing: Finances Contracts Usage of IT Assets 21

19 What it means Throughout the asset s lifecycle Maintain an optimal balance between business service requirements: Total costs Budget predictability Contractual and regulatory compliance 23

20 IT Asset Activities The management of: Asset Inventory Software licenses Vendors Procurement Leases Warranties Cost accounting Retirement and disposal. 25

21 What are IT Assets? Computer Hardware Enterprise Servers (Mainframes) Distributed Servers Storage Devices Printing Resources Desktop / Portable Resources Network attached devices Local devices 27

22 What are IT Assets? Telecommunications Hardware Network Hubs, Routers, Bridges, Switches Voice PBX, VoIP Resources Shared Voice/Data Resources Mobile Devices Smart Phones, Tablets 28

23 What are IT Assets? Software Operating Systems / Sub-System Application Purchased Developed Database Performance Diagnostic Utilities 29

24 Capital / Expensed Assets Capitalized Assets Purchased Resources Leased Resources Loaned Resources (Vendors) 30

25 ITAM Lifecycle Configuration Request Purchasing Receiving Build Installation MAC Cycles Disposal IS Standards Board IS Product Catalog End Users Requestors Ordering Tracking Receiving/ Stock Clerks End Users Assemble Provision SRs to: o Techs o End Users Move Add Change Retirement Disposal Auto Discovery Systems - Desktops Asset Tool & Repository Current Systems & Databases SCCM, Access, Excel, Enterprise Systems 31

26 Asset Reference Model Comparative Milestones Performance Metrics Tracking Continuous Process Improvement Root Cause Analysis Inventory Reporting Project Planning & Support Acquisition Purchase & Lease Contract & Vendor Place & Track Order(s) Customer Request Request Complete Accurate Available Budget Tech Approval Approval Receiving Receive Product Data Entry Hand-Off to Production Production IMAC Software License Upgrades Financial Hard Costs Invoice Lease Soft Costs Chargeback Disposal Recycle Retire/End of Lease Recover Software Licenses Systems Interface & Monitoring Auto-discovery Tools (IDD, SMS, SCCM) Key System Interfaces 32

27 End User Need Best Practice Process Flow SPOC (Single Point of Contact) Create Request Product Catalog look-up Generate Estimate (if needed) Receive Vendor Acknowledgement and Status Submit to Vendor(s) Generate Workorder Create Purchase Order Receive into Stock Automated notification of PO s with installation Schedule Installation Receive by Requestor Installation update repository status Lifecycle Mgt: Stock volume monitoring with automated triggers for restocking Lifecycle Mgt: Reconciliation of Assets (autodiscovery & spot inventory) Create Invoice Create receiving record and enter asset in D/B Lifecycle Mgt: MAC activity tracking and management Lifecycle Mgt: Contract Contract monitoring and monitoring management and management Disposal update repository status End 33

28 Exploring the Asset Lifecycle Call to the Customer Care Center (Help Desk) Trouble report Service request Request for new service Change / Help Desk 34

29 Exploring the Asset Lifecycle Customers current configuration or service profile Is asset under warranty? What is customers service level (24x7, time & materials) Change / Help Desk Procurement Contract 35

30 Exploring the Asset Lifecycle Repair Dispatch technician Create work order Change / Help Desk Procurement Contract 36

31 Exploring the Asset Lifecycle Purchase replacement or new resource Warranty replacement? Disposal or retirement of old resource? Procurement? Change / Help Desk Procurement Contract 37

32 Exploring the Asset Lifecycle Cost and Charge Repair Billable time to customer Purchase Capital or expense Change / Help Desk Procurement Contract ERP System 38

33 Exploring the Asset Lifecycle Cost and Charge Moves, adds, or changes to resources Changes in Configuration Location Ownership Change / Help Desk Procurement Contract ERP System 39

34 Additional IT Finance Interactions Cost and Charge Chargeback Asset based Service based Change / Help Desk Procurement Contract ERP System 40

35 Additional IT Finance Interactions Planning and Budgeting Cost and Charge Planning & Budgeting Capital budgeting Revenue budgeting Expense budgeting Change / Help Desk Procurement Contract ERP System 41

36 Additional IT Finance Interactions Planning and Budgeting Cost and Charge Expense Reporting Depreciation hardware Amortization software Hardware & software maintenance Change / Help Desk Procurement Contract ERP System 42

37 Additional IT Finance Interactions Dashboard Planning and Budgeting Cost and Charge Dashboard reporting metrics Change / Help Desk Procurement Contract ERP System 43

38 Additional IT Finance Interactions Dashboard Project IT project resources Change / Help Desk Procurement Planning and Budgeting Contract Cost and Charge ERP System Project 44

39 Additional IT Finance Interactions Dashboard Planning and Budgeting IT Portfolio Strategic planning for IT resources Change / Help Desk Procurement Contract Cost and Charge IT Portfolio ERP System Project 45

40 Integrated Enterprise Architecture Framework Design Concept Dashboard Planning and Budgeting Asset & License ITAM Change / Help Desk Procurement Contract Cost and Charge ERP System Central Repository / Data Warehouse Asset/Configuration Database IT Portfolio Project 46

41 Next Steps Assessment Where we are Recommendations Where do we want to be? Design Document 49

42 Questions 50

43 CNJohnson & Associates, Inc Buttemer Road Phelan, CA Voice FAX Charlie CNJohnson.com All rights reserved. This presentation may not be duplicated in any form without the expressed written consent of the author. 51

ASSOCIATION. CNJohnson & Associates, Inc.

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