IBM Apptio

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  • 1.  Implementation of „Fixed Assets Application TCO"

    Posted Wed August 31, 2022 03:04 AM
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    Implementation of „Fixed Assets Application TCO"

    Before we set up the cost allocation to Applications, we were not able to show any exact costs at the application level for the business areas. We had just an Allocation to the ITRT.

    We in the TMB Office pursue the App TCO Topic as an overarching goal and I have contributed to the Implementation of a subset Fix-Assets Application costs. This subset will bring us a big step closer to archive the project goal.


    Our IT Product landscape has high requirements. We have approximately 27 IT Products. IT products are services that we make available to our end customers and internal customers at Hermes to offer them concrete added value. We understand product development as the continuous improvement and significant further development of our IT products. However, these IT product development activities are capitalized on a quarterly basis. This make it difficult for the applications owner to keep a overview about their Fix-Assets Application costs. 

    The Difficulty is that our Cost from the „Fixed Assets"(depreciation and amortization) only allocated to ITRT. No costs of Fixed Assets were shown at the Application Level – therefore the Applications owners were unaware of there „sunk costs"from the historic development efforts.  A large part of our costs of the monthly financial statement are related to the Tower Application (direct Application costs). Therefore, we focused on implementing direct Application costs Allocations. Logically, the other subsets such as Vendor, Time Tracking and the other infrastructure costs must be implemented also as a part of the project to complete the Application TCO.  

    With the Creation of my Fixed Assets Application report, the Application owner and us in the TBMO having the opportunity to get an overview of the deduction costs of an application without having prepare large amount of excel data. As a result, a decision can be made regarding a special depreciation. An Example: We could identify an unimportant application, which does not offer much more value for the company and not even be used but causes high depreciation costs.

    Our next steps are to complete the Application TCO Report with all costs. We want implement Application Portfolio Management where we would like to manage our application portfolio based on this report. Furthermore, we would like to use the App TCO report to give our stakeholder (solution owners) a cost transparency of these applications to optimize the costs and to eliminate applications with high costs and low business value.

    In the attached PDF Document you will find a summary of my work. 

    If you have any questions about my case study do not hesitate to contact me.


    ​ #ETBMA #Fixedassets #ApplicationTCO #2022

    @Debbie Hagen @Tobias Zimmermann @Josef Petzenhammer @Barry Mason @Karsten Leurs @Niklas Netz @Lars Oliver Lange @Patrick Daum @Lena Sidorencov @Malik Sulle @Jan Stueber @Ulrike Walther @Sven Schrade @Melanie Riebl @Alexjo Scaria​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

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    Jai Tchanana
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    #casestudy
    #ApptioEducation
    #CostingStandard(CT-Foundation)
    #ACE

    Attachment(s)



  • 2.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Wed August 31, 2022 03:25 AM
    Hi Jai - interesting article, especially as many of our customers have excluded fixed costs like depreciation and amortization in their model. I'm curious about the data you have for your use case. Does Hermes have good governance and control processes over their fixed asset register to allow allocation of these costs into ITRT and beyond?


  • 3.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Wed August 31, 2022 04:13 AM

    Hi Duncan,

    Thank you for your Question! 


    Yes we do have a established porcess to monitor the fixed assets ledger with our finance department and therefore we do "clean- ups" of a regular base. 

    We think that the Fixed Assets are a essential part of IT Spend and should therefore be allocated through the whole model.

    If you would like to exchange some views and thoughts please contact me and then we can arrange a Disscusion with other team members.

    best regards
    Jai  



    ------------------------------
    Jai Tchanana
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  • 4.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Wed August 31, 2022 04:48 AM
    Hi Jai,

    Great project!

    Fixed asset allocation has traditionally been difficult due to the lack of detail in the Register.  Did your finance department start including Application ID as part of this project, or was it something that was always done?  

    Regards,

    Stuart



  • 5.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Thu September 01, 2022 06:30 AM
    We allocate D&A via the Servers Object mainly. S/W D&A also goes to Applications.

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    Regards, Guillermo
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  • 6.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Wed September 07, 2022 05:41 AM
    Hi Stuart, 

    we using a fixed assets mapping table, we assign a specific application ID to individual assets which have the tower Application

    Regards, 

    Jai

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    Jai Tchanana
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  • 7.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Mon September 12, 2022 11:10 AM
    We started using application name for application ID. Now the CIO has initiate an application ID to be added to our CMDB. I am starting the process of switching everything to application ID. The change is quite extensive though. We map to application in most parts of our model.

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    KristineKleinTerex CorporationSr IT Operations Specialist
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  • 8.  RE: Implementation of „Fixed Assets Application TCO"

    Posted Tue September 13, 2022 03:08 AM
    True, @Kristine Klein. We had done that in R11. When we moved to R12, we defined the allocation lines to use the application ID instead of the name, as we found the latter to be more prone to change.​

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    Regards, Guillermo
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