IT Service Financial Management

Overview

Although almost all companies and other organisations use information technologies in almost all their business processes, it is commonplace for their to be no real awareness of how much this technology really costs.

This situation has several drawbacks:

• Technological resources are wasted.
• The associated expenses are not budgeted properly.
• It is practically impossible to establish a consistent price policy.

The main objective of Financial Management is to evaluate and control the costs associated with IT services such that customers are offered a high quality service with an efficient use of the necessary IT resources.

If the IT organisation and/or its customers are not aware of the costs associated with the services they use or deliver, they will not be able to assess the return on investment or establish consistent technology investment plans.

The properties and functionalities of IT Service Financial Management are briefly summarised in the interactive graphic below: