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May 2016 - IDC PlanScape - Doc # US41301216

IDC PlanScape: Developing a Service-Based Budgeting and Forecasting Model — Plan Services, Not Cost Centers

Table of Contents

IDC PlanScape Figure

Figure: IDC PlanScape: Developing a Service-Based Budgeting and Forecasting Model

Executive Summary

Why Is a Service-Based Budgeting and Forecasting Model Important?

Figure: Shift from Cost Center–Centric Budgeting to Service-Based Budgeting

The Problem with Planning by Cost Centers

Figure: Cost Center–Based Budgeting Versus Service-Based Budgeting

The Advantages of Service-Based Budgeting and Forecasting

What Is a Service-Based Budgeting and Forecasting Model?

Initial SBBF: Capture Costs by Service and "Run, Grow, Transform" the Business

Figure: Service-Based Budgeting and Forecasting: Analyzing Services by Run, Grow, and Transform the Business

SBBF Refinements 1 — Distribute Foundation Services to Business Services

SBBF Refinements 2 — Distribute TCO Services to Customer Consumption

Who Are the Key Stakeholders of a Service-Based Budgeting and Forecasting Model?

CIO and the IT Management Team

IT Financial Management

IT Service Managers and Cost Center Managers

IT Customers

How Can My Organization Take Advantage of a Service-Based Budgeting and Forecasting Model?

Step 1: Develop "Run the Business" Service Baseline

Figure: Step 1 Action Plan — Develop "Run the Business" Cost Baseline by Service

Step 2: Institute Demand-Based Service Baseline "Puts" and "Takes"

Figure: Step 2 Action Plan — Establish Demand-Based Service Baseline "Puts" and "Takes"

Step 3: Drive Competitive Advantage Innovations by Service

Figure: Step 3 Action Plan — Drive Competitive Advantage Innovations by Service

Step 4: Develop "Grow the Business" Budget

Figure: Step 4 Action Plan — Develop "Grow the Business" Budget

Step 5: Consolidate and Fine-Tune Budgets

Figure: Step 5 Action Plan — Consolidate and Fine-Tune Budgets

Essential Guidance

Related Research

Referencing Documents

Related Links