How can I determine the correct demand size for IT services to estimate 'should cost' in the IT budget, using a financial model based on persona and facility? I'm building a financial model to estimate IT service demand per persona and facility, for a Price x Quantity 'should cost' model, but typical benchmarks don't provide necessary variables or scale.
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HEAD IT in Consumer Goods8 months ago
To determine the correct demand size in IT, first need to identify parameters like TPS, volume, location network, cloud, DC and several other factors that need to be finalized. And then current traffic, scope and cost by doing this we get an insight into the IT component and costs. It's completely varied across organizations. Audit/Security/Growth/Regulatory/Legal - all aspects must be considered. All growth rate parameters vs cost rate will be different so the tool must take care of the same too. Overall want to say making generic is a bit difficult but possible to fit across organizations if proper team and time are allocated for the same.Chief Information and Technology Officer8 months ago
We use the previous year's Operational spend and IT Key Metric data to baseline that number and go from there, it becomes a negotiation point. As for capital spend that comes from our strategic plan and we have a tool that creates the business plan that provides the capital cost, TCO, Cash flow etc. and, this is an import point, we include the operational costs for those initiatives. The idea there is we treat new initiatives as Products, not Projects so when we seek and get approval for those initiative, the new operational spend is approved too. We also have created a cost optimization program which ensures we decommission old services. Theoretically should be part of the new inititatives business case but it ensures those things are happen and tracked. Lots here, happy to discuss further.
Robin