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On-Demand Webcast:
Mature Consumption Based Model:
The Steps to a Service Utility Model

Speakers:

Suraj Nekram, President and CEO, SteelGlass Consulting

Todd Tucker, Director of Strategic Marketing, Apptio Inc.

 

In a true consumption-based model, all products and services are defined and tracked. Utilization is captured and billed directly to the user, using a rate x volume calculation. Learn about the benefits derived from a mature consumption model and whether it is right for your company.

The steps to develop a consumption-based model are:

  • Mature your Product/Service Catalog.
  • Align costs at the product level.
  • Track consumption by billable units.
  • Build a rates modeling process.
  • Create a rate x volume Bill of IT.

Beginning with a few months of shadow billing, you'll soon identify where you can improve your data quality and processes. Establishing communication and governance are keys to a successful implementation. Two case studies spotlight success with the consumption-based approach:

  • A Global Hospitality company automated the chargeback of IT services to individual hotel properties, based on itemized usage of IT services and infrastructure. Using Apptio's solution to develop a visual cost allocation model, this company was able to create chargeback reports for each brand, drill-down reports by brand and various activity reports, such as email, headcount, PCs and servers.
  • A Large Online Services company used Apptio's solution to create a Bill of IT for telecommunication users' direct costs. This helped the company shift behavior and save costs.

This is the third webinar in the 2011 series, "Understanding and Leveraging IT Financial Transparency to Improve Business Alignment." Join experts from SteelGlass Consulting, leaders in IT transparency professional services, for this complimentary educational webinar series brought to you by Apptio.