German version

With constagBILL to effective IT financial management

The proportion of direct and indirect IT costs of the overall process costs of many companies and administrations is increasing continuously. The replacement of traditional methods of process support reduces the "paper processing" in classical processes. Innovations in information technology are incorporated into the business processes through the electronic support. Often IT costs in percentage reach already a substantial portion of the process costs in the company. Effective IT Controlling with meaningful IT Controlling metrics is required.

The IT paradigm

Many companies struggle with two rigid behaviors: the IT as objector and the request concert of the different divisions. The business orders IT Services, the business requirements dictate the pace, Time-to-Market dictates, and the internal IT (supposedly) is for free. The IT is given a defined, perhaps even reduced budget, with which also the purely internal IT projects and replacements must be financed. Due to the many, quite legitimate, but not always priority needs it quickly becomes a close call. With the effect that the IT organisation has to reject.

As a result, both sides are increasingly frustrated: The IT because they would rather act as an enabler, the business units because they are braked in their activities. The cause stems from the fact that; the internal funds are not noticeable; that no cost transparency prevails; that the business cases are made in the IT instead of the business units.

The main problem of IT costs is that these, based on the booked cost elements in the IT cost and performance accounting, can not offset the consequential benefits. Therefore it is extremely important to always simultaneously bring IT costs in context with the IT Services.

Strategic IT Controlling

Many companies therefore recognise that a performance-oriented IT cost accounting is necessary. A majority of these companies still charge IT costs by overall keys. In this case,the control of IT costs is very difficult if not impossible. with a performance-oriented IT Service billing the IT Service costs and IT services are planned, monitored and controlled through allocation bases. the offsetting and control is based on the basis of agreements between the IT organisation and the customer (SLA).

Cost-benefits must be calculated within the business, only this creates an awareness of the cost implications. And that does not stop with the innovation projects. The investments must be amortised, the acquired IT resources must be maintained and the necessary IT staff must be remunerated. Exactly these costs are reflected in the service prices. And with the service offsetting, costs and expenses are made transparent, the IT budget moves from the often-quoted nightmare to a predictable and assessable reality.

Each IT tool which a user uses – starting from his electronic work place over printer and mobile phone, to the server-based applications – is based on purchases and services in the IT department. And here lies the nub of the problem: the services. Not only the project services should be considered, but also the operational services which are necessary for the provision of IT resources. Not to forget the administrative, strategic and managerial services in the IT. Services are expenses are costs. Therefore we define so-called IT performance bands for a differentiated and precise allocation of costs, .

IT Controlling Leistungsbänder

Within the performance bands MtB, CtB and RtB the services are defined and delimited:

  • In Manage the Business cost drivers such as IT Management, consulting of (internal) customers, strategic conceptual and administrative expenses, et al.
  • In Change the Business cost drivers such as project management, design of concepts and technical specifications, software engineering, testing, et al.
  • In Run the Business cost drivers such as system and application maintenance, migration, replacement investments, licenses, amortisation, hardware and software support, et al.

By using the performance bands, it is defined where what Services and thus costs arise. Furthermore, a Service catalogue is needed, in which the Services and Service products are defined. And the quantity structure which is determined by the inventory. In addition to power, cooling, hardware, software, etc it also requires manpower. These services must be recorded, measured and assigned to the corresponding performance bands by time-reporting with a respective tool. A correct benchmarking of IT costs is now possible.

constagBILL - the constag IT Service allocation

The constag IT-Service allocation is divided into the following units, whereby the various options can be freely selected.

IT Controlling - constagBILL product structure

You can see our standardised approach in our product movie or the product presentation (registration required).

Thus, the aspect of qualitative provison of IT Services is not missed out, we developed the product constagCUBE in IT Service Management. This allows our customers a gradual integration of Service Management, so that the internal employees receive a chance to develop their skills.

constagBILL is flanked by other constag products. constagGRID is taking care of your IT-Governance, constagCHANGE offers you the IT organisation development and with constagHORIZON you ensure, by the definition of a IT strategy, an effective IT organisation that supports the company's objectives.

Back to Portfolio