Seminar Session Abstracts

 

Chargeback System Implementation A Case Study

During this session we will discuss the case of the implementation of a chargeback system from beginning to end.  We will talk about the allocation process pre-implementation, the steps taken to evaluate the old process, the plan for implementing a new process, software selection, the software implementation, bumps along the way, and the effort required post-implementation.

Total Technology Management 

What the truly effective technology enterprise needs is to integrate several important disciplines into Total Technology Management (TTM).  Strategic planning, capital budgeting, project planning, project evaluation, project tracking, expense budgeting, expense reporting, activity-based costing and management, product and service pricing, chargeback, resource planning, asset management, benchmarking, and balanced score card all will be discussed as essential elements to Total Technology Management.

IT Asset Management The Key to IT Financial Management

This session discusses the important role IT Asset Management (ITAM) plays in Total IT Financial Management.  ITAM is critical to several IT financial functions.  We will explore the various interactions ITAM has to these functions.

Best Practices for Shared Service Chargeback

Often the idea of charging for services goes beyond IT into many other corporate functions (HR, Facilities, Legal, etc.).  This presentation presents reasons and models for this type of charging.  We will discuss how some companies allocate or charge for these functions.

Financial Concepts for IT Professionals

This session compares and contrasts financial and managerial accounting. Many cost accounting terms are defined and discussed. The concept of cost allocation flow is introduced.

Terminology Tutorial for Chargeback

The advent of new technology brings new terminology. This basic introduction to various IT environments will explain in non-technical terms the acronyms, concepts, and terms relevant to the chargeback of mainframes, data networks, and distributed processing.

Principles & Practices of Chargeback

This presentation discusses management's philosophy for IT costing and chargeback. It reviews the evolution of financial management for IT through the Nolan Six Stages of Growth; surveys the types of IT financial management; and analyzes issues and characteristics of financial management systems. It examines the issue of whether IT should be charged back and ask the questions: Who should be charged? What type of charging (resource or business unit) should be done? How should IT be charged?

Resource Rate Development

This session reviews the philosophy for IT costing and chargeback. It continues with a step approach to building resource cost pools and rates. The steps include: collection of source information, preparation of cost allocation work packages (direct and indirect allocations with methodologies), pricing decision, and approval. Specific examples are given for a variety of resource cost pools.

Special Costing Problems

The session considers alternative methods for handling special billing issues: excess capacity or performance reserve, peak or shift processing, levels of service, and single versus multiple rates. The topics include theoretical and practical approaches.

Business Unit Costing

Billing for business (customer defined) units offers an alternative to billing for technical resources. This session examines a simple approach to developing a process for billing by business unit rates. The process is described with a specific business example.

Operational Considerations

This presentation focuses on specific issues concerning the collection and processing of the data. Operational considerations include how the system is implemented including setting up the account code and reporting structure, system administration, "balancing the system," data collection concerns, and daily, weekly, monthly, and annual cycles.

Evolution of Distributed Processing

This is a brief discussion of how processing moved from the closed centralized data processing environment of the past to the open distributed processing of today. The session introduces some of the cost considerations for distributed systems.

Specific Issues of Distributed Systems

This presentation begins with a brief definition of distributed and client/server systems. The session includes the following issues: cost issues, including the often-large "hidden" costs; the advantages for moving to distributed systems; and advice for implementation of a distributed system.

Distributed Processing: Components and Measurement

This session will look at the client/server configuration and discuss: client/server resources, the variety of hardware and software components, the activities that can be captured, the software tools available for charging. Several billing method alternatives will be considered.

Chargeback - IT Financial Management

This session focuses on how chargeback becomes real IT Financial Management. The discussion looks at this issue from the viewpoints of both IT management and the IT client. It helps answer the question: "How can this tool be used to optimize the IT resource?"

IT Cost Measurement Techniques

This session describes the various types of IT costs required for financial planning, controlling, pricing, evaluation, and decision making. Examples of how to compute these various costs will be illustrated (e.g., resource costs, activity-based costs, product (business unit) costs, decision-making costs, etc.).

Activity-Based Costing Tutorial

This session will discuss: 1) the behavior of costs (variable, fixed, and mixed), 2) basic concepts of overhead (plant-wide, departmental, and ABC), and 3) basic design of an ABC system, including process value analysis, activity centers, and cost drivers.

Capital Budgeting Techniques

This session explains the tools and techniques for evaluating capital budget decisions: cost benefit analysis, payback period, simple rate of return, net present value (NPV), internal rate of return, NPV Profile (graphical analysis), Total Cost Approach, Incremental Cost Approach, and post-audit of investment projects.

Relevant Costs for Decision Making

It is critical to understand that we use different costs for different purposes. For decision-making purposes, we need to identify those costs, which are relevant or not relevant to the decision, such as sunk costs and future incremental costs. This session discusses cost issues of outsourcing (make or buy analysis) and in-sourcing (full utilization of resources).

Chargeback: Low Tech in a High Tech World

This presentation is a discussion of common practices in chargeback, including what is being done, what should be done, the possible uses of the tools of chargeback systems, goals of quality chargeback systems, and how true IT financial management can be achieved.




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