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Cost Transparency In these difficult times where profitability is squeezed and expenses are heavily scrutinized. Technology costs are scrutinized more than ever. Companies must understand the ramifications of the decisions that are made regarding technology investment. And still today many organizations have little understanding of how these technology expenditures relate back to the business volumes and objectives. This lack of knowledge results in Business Leaders making uninformed decisions that could actually result in higher costs and lower efficiency. Successful Technology Organizations are managed as a business and have the ability to demonstrate what drives the cost of each activity within Technology. Technology Leaders must be able to capture the cost of each service delivered and what actually drives each specific cost, whether it is service level, # of customers, # of servers, etc. Once they have this information they are equipped with an arsenal of information that should be translated from “techno speak” into “business speak” and shared with the business leaders. When Technology Leaders can effectively demonstrate the “Cost of IT” to the business leaders, they will have a full understanding of the tradeoff between cost, service level and risk associated with the decisions that they are making with regard technology expense. This discipline transforms the Technology Leader from a service provider into a true Business Partner that works hand in hand with the Business Leaders in making decisions regarding the enterprise. Below are some links that go into greater detail regarding the benefits derived from building a Cost Transparent IT Organization. http://www.podtech.net/home/3828/it-cost-transparency interview with Frank Mackris http://www.mckinsey.com/clientservice/bto/pointofview/pdf/MoIT5_Unraveling_the_mystery_of_IT_costs.pdf Unraveling the mystery of IT Costs |