1. Info-Tech Research Group1 Manage IT Budgets & Cost World Class Operations - Impact Workshop

2. Info-Tech Research Group2 Beyond Practical Research – Workshops Get You To Results Workshops: Leverage Best-Practices Research & Get to Action Unlike other Research firms, we believe it’s important to help our members implement improvements. An on-site 40-hour workshop, which allows you to make systematic improvements to your core processes. Workshops are designed to help focus attention, create alignment, and ensure best practices are put to work at your organization. Our workshops help you get to immediate impact and results, and are tailored to your situation and needs. Workshops: Focused on You Implementing Improvements The goal of each Capability Optimization Workshop is to create tangible benefits and clear improvements as a direct result of the workshop. Specific deliverables, goals, metrics, and outcomes are established for each workshop. Successful workshops will leverage Info-Tech’s years of analyst experience and written research, to provide an engaging experience that focuses on implementing and getting to measurable results. Each workshop begins by diagnosing the current state, and then focuses on designing high-impact improvements based on best-practices research. Three & Six Month follow-up will occur to ensure benefit realization. Info-Tech Workshops provide the best-practices and implementation support necessary to help an IT leader build a World Class IT Operation Capability Optimization Workshop Diagnose Current State Right- sizing Process Process Design Measuring Benefits Implementation Support

3. Info-Tech Research Group3 Immature or poorly executed IT budget and costing causes: Wasted investments in non-critical IT initiatives. Inability to secure funding for important projects. Low levels of business satisfaction with IT service and performance. Poor visibility into IT resource usage amongst the organization. Large variance between budgeted and incurred costs. A formalized IT budget and costing process results in: Specific criteria for assessing the relevance of IT investments to business objectives. Documented and prioritized list of IT initiatives for the coming year. Rigorous evaluation of the benefits and costs of upcoming initiatives, relative to corporate objectives. Increased alignment and support from the business. Increased budget availability. What is IT Budget & Costing? A formal process for managing IT spending to ensure alignment of IT services with strategic business objectives.

4. Info-Tech Research Group4 Workshop Schedule & Core Deliverables NameGoalCore Deliverable Day 1 Manage Finance and Accounting Define and understand the financial and accounting processes in the organization. Financial and Accounting Process Outline Day 2 Prioritize Resource Allocation Establish a process for prioritizing IT resources to create a list of the most critical new initiatives for supporting the organization’s strategic goals. Project Prioritization Process and Tool Business Case Template Points Tracking System Day 3 Create and Maintain the IT Budget Improve the current IT budget process to build a more formal IT budgeting document and plan. Budget Evaluation Process Day 4 Create a Cost Allocation System Establish a cost allocation model to identify, measure and predict IT resource costs with calculations and workflows. Cost Allocation Process and Model Cost Management Strategy Day 5 Manage IT Costs Identify areas that are successful and those that need to be adjusted in order to optimize the budgeting process. Cost Optimization Strategy

5. Info-Tech Research Group5 Day 1: Manage Finance & Accounting 1.1 Review High- Level Goals Discuss agenda and complete introductions Review reasons for undertaking this process Familiarize the group with the final deliverables 1.2 Collect Documentation Gather financial information Understand the organization’s processes for budgeting Review Organizational budget deadlines, reporting, responsibilities, and IT chart of accounts 1.4 Define High- Level Financial Process Define current processes for budget planning, resource allocation, cost allocation, and cost optimization Outline high-level roles and responsibilities for the current process 1.3 Determine Stakeholder Budget Goals Discuss overall goals of the IT budgeting process to address pain points, alignment, funding, and the current approach

6. Info-Tech Research Group6 Day 2: Prioritize Resource Allocation 2.1 Uncover Issues & Opportunities Whiteboard the current process for prioritizing IT-related projects Assess and discuss where improvements can be made to the current process 2.2 Decide on a Process for Prioritization Establish responsibility by creating a committee Decide on a procedure for collection and sponsorship Define thresholds for projects to be reviewed by committee 2.3 Decide on a Points Tracking System Decide if a points tracking system is beneficial Create a points tracking system Create an IT steering committee to govern points tracking Develop criteria to right- size and improve business cases Establish how cost cutoffs will be determined for initiatives Develop criteria to ensure business alignment Create a process for ranking projects Decide on communication and review process for ranked initiatives Decide on a process for incorporating change Decide on a budget submission process

7. Info-Tech Research Group7 Day 3: Create & Maintain the IT Budget 3.1 Identify Issues & Opportunities Discuss the current budget process and identify where improvements can be made 3.2 Manage Budget Decision Makers Establish responsibility for each step in the process Align Expectations with budget stakeholders 3.4 Document & Communicate Determine how the budget will be documented Determine how the budget will be communicated to IT and the CFO 3.3 Build the Budget Capture committed IT spend Capture approved project estimates Decide how the budget will capture workload and staff size requirements Decide how the budget will capture IT initiatives Decide how contingency funds will be allocated

8. Info-Tech Research Group8 Day 4: Create a Cost Allocation System 4.1 Evaluate Need for a Cost Allocation Model Discuss the organization’s current state of allocation 4.2 Decide on a Cost Allocation Model Right-size a cost allocation model for the needs of the organization Determine a timeline for review 4.5 Communicate the Cost of IT Usage Determine how IT usage will be communicated with stakeholders Determine how changes will be implemented to the system 4.3 Conduct a Historical Study of IT Usage Take a snapshot of historical usage for departments and services Analyze trends and current usage patterns to identify areas of change 4.4 Create an Improved Capture System Analyze the current cost capturing system Determine necessary changes and opportunities Identify Issues and Opportunities with the current system Ascertain the need for and interest in allocating IT costs Analyze the effectiveness of the current IT chart of accounts in relation to the model Determine business unit accountability

9. Info-Tech Research Group9 Day 5: Manage IT Costs 5.1 Discuss Goals & Issues Discuss issues and opportunities in managing IT costs Establish goals for managing costs 5.2 Create a Cost Management Process Outline roles, timelines, and metrics Create a cost analysis process to identify and address significant budget variances Outline a benefit realization process to capture true benefits of initiatives 5.3 Optimize Costs Discuss the need for a procedure for reducing and optimizing costs Discuss budget and cost reduction targets Define the reporting methods for cost and benefits analysis Develop a strategy for IT cost cutting

10. Info-Tech Research Group10 Client Testimonials The twists and turns that the workshop took to personalize it to us, exceeded my expectations, and we actually ended up overall exceeding because we created things that I hadn’t anticipated doing. -University I thought there was a real product delivered out of this week... that, longer term, could mean significant improvements for us. -University

11. Info-Tech Research Group11 IT Budget Workshop Primary Deliverable: Best Practice Approach to IT Budgeting Customized to your Process Build a system that is transparent and repeatable, and utilize it each year. Align resource allocation with organizational strategy and goals. Promote IT as a partner in the business, instead of as a cost center. Establish a right-sized process for tracking the achievement of costs and benefits, as outlined in business cases, over time. Project Prioritization Process and Tool Assess and Right Size Your Business Case Establish a Cost Optimization Strategy

12. Info-Tech Research Group12 IT Budget Workshop Core Deliverables Eight Key Deliverables will be completed during the Workshop: Financial & Accounting Process Outline Define and understand the financial and accounting processes in the organization. Outline goals, processes, responsibilities, and timelines. Project Prioritization Process and Tool Complete a full walk-through of the decision making process and create a draft process manual for prioritization detailing best-practice activities. Align resource allocation with organizational strategy and goals. Business Case Template Review all proposals through a standard business case template. Right-size the business case template or co-design a template with an ITRG analyst. Points Tracking System Create a points tracking system and steering committee for smaller initiatives. 1 2 3 4

13. Info-Tech Research Group13 IT Budget Workshop Core Deliverables Budget Evaluation Process Complete a full walk-through of the budget process and create a draft process manual detailing best- practice activities. Cost Allocation Process & Model Create a cost allocation process, which includes a right-sized cost allocation model, an updated method of classifying costs, and an optimized cost capture system. Cost Management Strategy Establish a right-sized process for tracking the achievement of costs and benefits as outlined in business cases over time. Cost Optimization Strategy Complete a full walk-through of the process for optimizing costs, and create a draft process manual detailing best practice activities. 5 6 7 8 Eight Key Deliverables will be completed during the Workshop:

14. Info-Tech Research Group14 Manage IT Budgets & Cost Workshop: Built on World Class Research, Experience, and Standards Research Process COBIT Driven Grounded in open international standards. APO06 Manage Budget and Costs. Team with over 30 years experience. Over 2,800 hours of research. Based on primary and in-field research. Tools & Templates Process Guide Investment Mix Visualization Business Case Assessment Business Case Prioritization Points Tracking System Milestone Report Portfolio Metrics Evaluation Benefits Summary & Analysis 139 page Research Report 19 in-depth activities and exercises Ability to accommodate 100 of your top projects