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.
- 2Basic
- Practice
- Identify and capture most of the direct and some indirect cost drivers.
- Outcome
- The most obvious costs are incorporated in the TCO models.
- Metric
- % of cost drivers tracked.
- Practice
- Refresh TCO models using actual cost data once annually for a limited number of key IT assets and services.
- Outcomes
- A basic cost tracking of key IT assets is available.
- Confidence is emerging that TCO models are underpinned by actual cost data.
- Metrics
- % of TCO assessments underpinned by actual cost data.
- % of IT assets tracked.
- 3Intermediate
- Practice
- Identify and capture all direct and most indirect cost drivers.
- Outcome
- TCO models have expanded cost coverage.
- Metric
- % of cost drivers tracked.
- Practice
- Refresh TCO models using actual cost data at least quarterly for most IT assets and services.
- Outcomes
- There is improved tracking and transparency of the IT asset list.
- There is increased credibility and confidence that TCO models are underpinned by actual cost data.
- Metrics
- % of TCO assessments underpinned by actual cost data.
- % of IT assets tracked.
- 4Advanced
- Practice
- Identify and capture all direct and indirect cost drivers.
- Outcome
- TCO models capture all of the main cost impacts.
- Metric
- % of cost drivers tracked.
- Practice
- Refresh TCO models using actual cost data at least monthly for all IT assets and services.
- Outcomes
- The full IT asset list is tracked and can be readily updated based on organization-wide monitoring.
- Credibility and confidence that TCO models are underpinned by actual cost data is achieved.
- Metrics
- % of TCO assessments underpinned by actual cost data.
- % of IT assets tracked.
- 5Optimized
- Practice
- Apply continual improvements to the collection of actual cost data.
- Outcome
- There is a high degree of confidence that TCO models capture all cost drivers — direct, indirect, and opportunity.
- Metric
- % of cost drivers tracked.
- Practice
- Consistently refresh TCO data in near real time as costs are incurred.
- Outcomes
- There is a high degree of confidence that the IT asset list used for TCO assessments is accurate and reliable.
- TCO models are optimized.
- Metrics
- % of TCO assessments underpinned by actual cost data.
- % of IT assets tracked.