1. Costing Services Of A Large And Complex Organisation with minimal management overhead Vlad Fridkin CCEA Manager Costing Services, CIOG|COO|CFO

9. What is Large? Large Company (ASIC) CIOG

10. What is Complex? Corporate Apps Communication App Hosting Operation Support End-user Services Military/Logistic Apps S S C C

11. Value chains Structures Measures

12. Costed Services? Not CostedCosted !

13. 2D End User Devices Employees Contracts Organisational Area (Who purchases) General Ledger Accounts (What is purchased)

14. 3D End User Devices Employee Costs Contracts End User Devices Services Organisational Area (Who purchases) General Ledger Accounts (What is purchased)

15. Value chains S S C C 2D 3D4D 5D

16. What is Minimal? Corporate Apps Communication App Hosting Operation Support End-user Services Military/Logistic Apps Costing

17. Recap Definitions Large Complex Value chain Costing services Minimal 2D 3D4D 5D

19. http://www.dau.mil

20. Reminder The dollars represent the annual service cost, not the acquisition price Analogy $2,500/year +/- adjustments

21. Parametric 100 users $2000/year (each) 200 users $1,900/year (each)

22. Engineering Corporate Apps Communication App Hosting Operation Support End-user Services Military/Logistic Apps

23. Actual Cost 2013 $2,000/year 2014 $2,100/year

24. http://www.dau.mil Costing Services links to all these methods!

26. Reminder QA is done at each step

27. Prepare Structures Cost pools (groupings of ledger accounts) Organisational hierarchy (cost centres) Employee structures (e.g. occupations) Actions (what people do) Services (what is produced, consumed) Consumers (external) Inputs BLACK BOX OUTPUTS

28. Populate with data Financial data (for chosen period of analysis) Personnel data (individual APS, ADF, ESP) Transaction descriptions, purchase order text Intranet websites Volumetric data Costing interviews Inputs BLACK BOX OUTPUTS

29. Eat Fruit Project cost estimation Budgeting Service management Org. restructure

32. Minimal Maximise use of existing data Lots of automation reports in Word, PowerPoint, Excel Most effort is by the costing team, not managers On average an interview takes 2 hours/year

34. Predictions Increased use by project costing More streamlined approvals process Increased Defence groups implementation Improved support to military Improved supplier consumer relationships