Presentation of the ITFM Pathway to Success
The vision of every financial leader is to optimize the financial performance of an organization through good financial planning, fiscal discipline, cost control, good governance, analytical support, liquidity, return on investment and accurate reports.
To help organizations achieve these goals, MagicOrange has developed the ITFM Pathway to Success, providing an easy-to-follow framework for implementing an effective IT Financial Management (ITFM) program.
MagicOrange ITFM’s path to success is uniquely designed to help executives responsible for managing IT finances and other shared services in their organization, such as CIOs, CFOs, IT finance managers and their respective teams.
What is the ITFM?
IT Financial Management (ITFM) is an active program that reveals the real costs of providing IT products and services. It allows organizations to optimize technology spending, improve investment governance, inform strategy and therefore increase profitability.
ITFM enables holistic IT expense management and improved ways to communicate costs. This enables IT to become a business partner that helps organizations achieve their strategic goals rather than being seen as a drain on resources.
Building on the global financial management standard
When developing the framework, we aligned the MagicOrange ITFM Pathway to Success with the ITFM’s Information Technology Infrastructure Library (ITFM) definition. It is the process of managing financial resources, investments and costs to provide IT services. It includes budgeting, accounting, and invoicing with the goal of delivering these services in a cost-effective manner – creating value for the business.
ITIL was developed by the UK government in the 1980s and has become the global standard for how an IT organization should operate and deliver services. Financial management is one of the 25 processes of the ITIL standard, as shown in Figure 1 below.
Figure 1 – ITIL v3 process
ITFM Pathway to Success SM
The MagicOrange ITFM Pathway to Success has been specially designed to unleash the potential that the ITFM discipline has to offer organizations. MagicOrange experts recognize the complexity of the overall journey to ITFM maturity and the importance of identifying a step-by-step path to success. They are well equipped to guide clients through the process and help them realize all the benefits of a successfully implemented ITFM framework.
MagicOrange’s team of experts consists of ITFM managers and practitioners with extensive and in-depth experience, ranging from global financial services organizations to the “big four” consultants and industry, which is unmatched in the market. This practical experience and the recognized need for an efficient ITFM tool led us to develop the MagicOrange solution.
It is extremely important to focus on the complex task of process change and data preparation before implementing an ITFM automation platform. This approach has proven to give the best results.
The MagicOrange ITFM Pathway to Success framework aligns with many ITIL Guiding Principles, with a structured approach in seven well-defined steps that organizations must follow, as shown in Figure 2 below:
Figure 2 – The ITFM MagicOrange Path to Success
- Assessment and planning
- Definition of service
- Data preparation
- Cost of services and benchmarking
- Realization of profits
There are no quick fixes because changes to people, processes and technology take time, and Organizational Change Management (OCM) is a key component when implementing an ITFM program. . OCM has been integrated with The MagicOrange ITFM Pathway to Success to help clients improve their ITFM capabilities.
Guided by the MagicOrange ITFM Pathway to Success framework, customers can now drive cost optimization across the organization by approaching cost savings initiatives in a systematic and holistic manner, from both IT supply and business demand perspectives.
MagicOrange is an established ITFM solution recognized by Gartner and successfully implemented in a number of large, complex international companies across various industries. It provides business leaders with a progressive, cloud-based ITFM tool and professional advice that brings full transparency into the value of technology in the organization.
The MagicOrange ITFM Pathway to Success will be presented at Conference on the financial world of information technology, hosted by IT Financial Management Association (ITFMA) – the founder and principal educator of the IT financial management profession. Join us at this in-person conference July 12-15, 2021, Milwaukee, Wisconsin, USA.