ITIL Financial Management

The object of ITIL Financial Management is to provide cost effective stewardship of the IT assets and the financial resources used in providing IT services.

ITIL Financial Management is an integral part of Service Management.  It provides the essential management information to ensure that services are run efficiently, economically and cost effectively.  An effective financial management system will assist in the management and reduction of overall long term costs, identify the actual cost of services and their provision, provide accurate and vital financial information to assist in decision making, identify how IT adds value to the customers business, enable the calculation of TCO and ROI, make customers aware of what services actually cost (if appropriate), support the recovery costs, from customer if appropriate, in a fair and equitable manner, provide measurements of value for money, and provide incentives to produce quality services aligned to business needs, help influence customer behavior for example by providing incentives for using non-critical resources, encourage more efficient use of resources, provide better cost information and control of external contracts and suppliers, and to assist in the assessment and management of changes.

ITIL Financial Management is responsible for enabling the organization to account fully for the spend on IT services and to attribute these costs to the services delivered to the organizations Customers, assist management decisions on IT investment by supporting detailed business cases for Changes to the IT services, and to control and manage the overall IT budget and enable the fair and equitable recovery of costs (by charging) for the provision of IT services.

ITIL Financial Management is the discipline of ensuring IT infrastructure is obtained at the most effective price (which does not necessarily mean cheapest), and calculating the cost of providing IT services so that an organization can understand the costs of its IT services. These costs may then be recovered from the Customer of the service.

Costs are divided into costing units:

·         Equipment

·         Software

·         Organization (staff, overtime)

·         Accommodation

·         Transfer (costs of 3rd party service providers)

The costs are divided into Direct and Indirect costs, and can be Capital or Ongoing.

ITIL Financial Management and IT Security: The practice of ITIL Financial Management enables the Service Manager to identify the amount being spent on security counter measures in the provision of the IT services. The amount being spent on these counter measures needs to be balanced with the risks and the potential losses that the service could incur as identified during a Business Impact Assessment and Risk Assessment. Management of these costs will ultimately reflect on the cost of providing the IT services, and potentially what is charged in the recovery of those costs.

According to ITIL, the Financial Management process in an IT organization consists of three main parts: Budgeting, Accounting, and Billing (or recognized as Charging or Internal Billing). All three aspects are nowadays becoming respectable (again), because of the benefits they bring in managing the IT organization.

ITIL Financial Management is the sound stewardship of the monetary resources of the organization. It supports the organization in planning and executing its business objectives and requires consistent application throughout the organization to achieve maximum efficiency and minimum conflict. The goals are to provide cost-effective stewardship of the IT assets and resources used in providing IT Services; to be able to account fully for the spending on IT Services and to attribute these costs to the services delivered to the organization's customers; and to assist management decisions on IT investment by providing detailed business cases for Changes to IT Services.

The scope of ITIL Financial Management includes Budgeting, IT Accounting and Charging, although the responsibility for the process and tasks may lie with the Finance department. In many organizations the budget rules are set for all parts of the organization and the monitoring and reporting of budgets is performed by staff who report to the Finance department rather than to the IT organization.

ITIL Financial Management—Concepts and Activities:

• Budgeting
• Developing the IT Accounting system
• Developing the Charging System
• Planning for IT Accounting and Charging
• Implementation

Benefits of ITIL Financial Management:

• Increased confidence in setting and managing budgets
• Accurate cost information to support IT investment decisions
• Accurate cost information for determining cost of ownership for ongoing services
• A more efficient use of IT resource throughout the organization
• Increased professionalism of staff within the IT organization

To sum, ITIL Financial Management provides a way to measure, control, and cover costs to IT service. ITIL Financial Management ensures the cost-effective management of IT assets and working capital. Contains 16 ready to use templates for successful Financial Management

* Hundreds of pages

* Ready to use templates for implementing processes and activities

* Excellent ready reference for agreements, delivering presentations and proposals

Please select from our list of products/services at: https://secure1.websitecomplete.com/itilsurvival/shop/showDept.asp?dept=13. It includes:

1. Accounting Policies: How do you account for spend on your IT Services and Assets? The Accounting Policies template provides guidelines for IT accounting and also how to create an effective Cost Model.    Price:   $36.95 each

2. Accounting Template: This template provides you with a practical examples and templates of IT Accounting spreadsheets.    Price:   $34.95 each

3. All The Documents: The Financial Management Kit: Temporary offer - only $ 199. Buy all the sixteen documents in the Financial Management Department - downloaded straight to your PC and ready to go.    Price:   $199.00 each

4. Budget Template: Having trouble creating a Budget? Don't know what to capture? This template provides an extensive list of items and structures that need to be included in an IT Budget. Ready to use.    Price:   $34.95 each

5. Budgeting Guidelines: A brief but powerful document that provides written words for establishing the budgeting guidelines within your organization.    Price:   $29.95 each

6. Charging Policies: If your organization chooses to charge for the IT Services that it delivers, than this is one of the most important documents. Establishing an excellent Charging Policy will help you remove the politics from this activity. This template provides a structure and guideline for your Charging Policies.    Price:   $34.95 each

7. Charging Template: This ready to use template provides you with a Charging Sheet and Invoice sheet, for the Charging of IT Services.    Price:   $34.95 each

8. Cost Model Template: This template shows how to break down your IT Costs by Service, Component, and Customer. It will provide a structure to allow you to fully attribute costs to individual departments within your organization.    Price:   $39.95 each

9. Financial Management Communication Plan: To be successful with a process implementation it is important to have a communication plan in place. This document provides an approach and a selection of information to share as part of your communication campaign.    Price:   $36.95 each

10. Financial Management Implementation Plan / Project: Financial Management Implementation Plan / Project Plan. This documents provides a skeleton outline for planning and project managing your Financial Management process implementation.

11. Financial Management Policies, Guidelines and Scope: Financial Management Policies, Guidelines and Scope Document. It is important to set Policies and Guidelines for your Financial Management process. This document provides a structure and written words.    Price:   $34.95 each

12. Financial Management PowerPoint Presentation: During the implementation it is considered best practice to involve all necessary parties. To get significant buy-in across the organization a number of road shows may need to be conducted. This PowerPoint presentation provides you with 1 hour of slides detailing what Financial Management is and ...    Price:   $32.95 each

13. Financial Management Process Manager Document: This document outlines the role, responsibility and tasks of the Financial Management Process Manager. It also includes a brief outline of the necessary skills needed by a Finance Manager.    Price:   $29.95 each

14. Financial Management Process Template: This document includes a series of objectives and goals for the Financial Management process along with a skeleton map of the process itself.    Price:   $32.95 each

15. Financial Management Reports and KPI targets. Financial Management Reports and KPI targets and additional metrics. A list of key reports and Key Performance Indicators for the Financial Management process, plus additional metrics that may need to be considered.    Price:   $39.95 each

16. Financial Management Review Document: This document provides a guideline for reviewing your organizations current Financial Management process. It will provide you with a maturity level for the process and highlight those areas that are open for improvement.