Technology investments touch every aspect of a business. Automation and other performance-improving technologies and services are key to driving efficiencies and innovation within the organization. A bill of IT is another tool that helps improve efficiencies.
Unfortunately, the people in budgeting and accounting often do not have a full appreciation of the value of technology or its role within the company. Worse yet, when the justification for IT services isn’t made clear or the value of the technology isn’t properly articulated, the CIO may find the IT budget shrinking.
Therefore, it is critical that the IT department continuously communicates the value it brings to the organization. The bill of IT helps demonstrate the value of IT, in a way the business units can understand.
Bill of IT: An Invaluable Business Tool
A bill of IT is a bill of materials that clearly and transparently explains the cost of IT services and devices in a way that’s easily understood by business end-users. Organizations use a bill of IT in IT invoicing that they chargeback or showback to the business units. It presents a clear, detailed list that shows the associations between each IT asset or service with any or all of the following:
- Cost – the price per service
- Price – the predefined unit rate
- Budget for its use – full cost per year or other reporting period
- Quality of the service – uptime metrics, support response times, and other service metrics
- Benchmarking – how is the service used in comparison to internal and industry benchmarks
Presenting an un-detailed IT budget or balance sheet might lead decision-makers within a company to think that IT is overspending on expensive or unneeded hardware, software, and services.
For example, if the IT manager has purchased and installed a top-grade email server without explaining why, then people might think it is money wasted. On the other hand, if business units are shown a Bill of IT that clearly highlights the quality of service (e.g., increased uptime or tighter security measures), along with a measure of how much more it would have cost to use a cheaper server, suspicion goes away.
By implementing a bill of IT, IT managers enable their companies to:
- Empower business units to change inefficient behaviors, such as removing duplicate types of applications and unused devices
- Develop better, more responsive budgets that better serve the organization’s growing needs
- Refine IT policies
Beyond the Bill of IT
Upland ComSci IT financial management software keeps track of all your assets and services, and displays them clearly – justifying the value of your IT investments. In fact, more than a bill of IT, ComSci generates a bill of shared services. It includes not just IT devices, hardware, and services but also the relative cost of internal goods and services each business unit consumes, such as office space, administrative services, legal services, marketing, and HR. ComSci provides not only IT cost transparency, but also cost transparency of all services used across your organization. In that way, a bill of services promotes dialog, trust, and useful change.
Learn more about ComSci: The IT Financial Management Software.