Cost Coverage
Identify cost drivers throughout the life cycle of the asset or IT-enabled business service, to include direct and indirect costs involved in acquisition, operations, enhancements, and end of life.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Cost Coverage at each level of maturity.
- 1Initial
- Practice
- Use basic TCO tools informally.
- Outcome
- Some familiarity with basic TCO tools is emerging.
- 2Basic
- Practice
- Capture the main direct costs' drivers.
- Outcome
- Basic costs are incorporated in the TCO models.
- Metric
- % of cost drivers tracked.
- Practice
- Track prioritized IT assets.
- Outcome
- A basic cost tracking of key assetts is available.
- Metric
- % of IT assets tracked.
- Practice
- Establish a basic process for using TCO models.
- Outcome
- Credibility and confidence is emerging that TCO models are underpinned by actual cost data.
- Metric
- % of TCO assessments underpinned by actual cost data.
- 3Intermediate
- Practice
- Capture all direct costs' drivers.
- Outcome
- TCO models have expanded cost coverage.
- Metric
- % of cost drivers tracked.
- Practice
- Formally track all IT assets.
- Outcome
- There is transparency of the IT asset list.
- Metrics
- % of IT assets tracked.
- % of total IT spend that is tracked.
- Practice
- Conduct consistent refresh of TCO models based on the actual costs.
- Outcome
- There is increased credibility and confidence since TCO models are underpinned by current cost data.
- Metric
- % of TCO assessments underpinned by actual cost data.
- 4Advanced
- Practice
- Capture all direct costs' drivers and demonstrate awareness of indirect costs.
- Outcome
- TCO models capture all the main costs impacts.
- Metric
- % of direct and indirect cost coverage.
- Practice
- Actively monitor the updating of the IT asset list.
- Outcome
- The IT asset list can be readily updated based on organization-wide monitoring and an effective governance process.
- Metrics
- Frequency of IT asset list review.
- % of IT assets tracked.
- % of total IT spend that is tracked.
- Practice
- Refresh TCO models consistently, based on the actual costs.
- Outcome
- Credibility and confidence that TCO models are underpinned by actual cost data is achieved.
- Metric
- % of TCO assessments underpinned by actual cost data.
- 5Optimized
- Practice
- Capture all direct, indirect and opportunity costs.
- Outcome
- There is a high degree of confidence that TCO models capture all cost drivers.
- Metric
- % of direct and indirect cost coverage.
- Practice
- Review the accuracy of the IT asset list regularly.
- Outcome
- There is a high degree of confidence that the IT asset list used for TCO assessments are reliable.
- Metrics
- Frequency of IT asset list review.
- % of IT assets tracked.
- % of total IT spend that is tracked.
- Practice
- Refresh TCO models consistently, based on actual costs and predicted demand.
- Outcome
- TCO models are optimized.
- Metric
- % of TCO assessments linked to predicted demand.