Difference between revisions of "IT Financial Management (ITFM)"
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| − | IT financial management (ITFM) is the oversight of expenditures required to deliver IT products and services. The discipline is based on traditional enterprise financial and accounting best practices, such as mandating documentation of expenses and requiring regular audits and reports. However, IT financial management methods and practices are adapted to address the particular requirements of managing IT assets and resources. | + | == Defition of IT Financial Management (ITFM) <ref>Defining IT Financial Management (ITFM) [https://whatis.techtarget.com/definition/IT-financial-management Techtarget]</ref> == |
| + | IT financial management (ITFM) is the oversight of expenditures required to deliver IT products and services. The discipline is based on traditional enterprise financial and accounting best practices, such as mandating documentation of expenses and requiring regular audits and reports. However, IT financial management methods and practices are adapted to address the particular requirements of managing IT assets and resources. | ||
Gartner professes that most organizations prioritize the following ITFM capabilities in their practices: | Gartner professes that most organizations prioritize the following ITFM capabilities in their practices: | ||
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*Variance analysis | *Variance analysis | ||
*Cost optimization<ref>ITFM Capabilities [https://uplandsoftware.com/comsci/resources/blog/whats-the-difference-between-it-financial-management-and-technology-business-management/ Upland Software]</ref> | *Cost optimization<ref>ITFM Capabilities [https://uplandsoftware.com/comsci/resources/blog/whats-the-difference-between-it-financial-management-and-technology-business-management/ Upland Software]</ref> | ||
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| + | == IT Financial Management (ITFM) Roadmap<ref>Planning your Financial Management Transformation Roadmap [ftp://public.dhe.ibm.com/software/os/systemz/telecon/2sep/Sep_2_Telecon_-_Basics_of_IT_financial__Management.pdf IBM]</ref> == | ||
| + | Below is a representation of how to plan your Financial Management Transformation Roadmap | ||
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| + | [[File:ITFM_Roadmap.png|400px|Plan your Financial Management Transformation Roadmap]]<br /> | ||
| + | source: IBM | ||
Revision as of 15:18, 21 August 2019
Defition of IT Financial Management (ITFM) [1]
IT financial management (ITFM) is the oversight of expenditures required to deliver IT products and services. The discipline is based on traditional enterprise financial and accounting best practices, such as mandating documentation of expenses and requiring regular audits and reports. However, IT financial management methods and practices are adapted to address the particular requirements of managing IT assets and resources.
Gartner professes that most organizations prioritize the following ITFM capabilities in their practices:
- Budgeting
- Forecasting
- Variance analysis
- Cost optimization[2]
IT Financial Management (ITFM) Roadmap[3]
Below is a representation of how to plan your Financial Management Transformation Roadmap
source: IBM
See Also
IT Cost Allocation
Technology Business Management (TBM)
IT Chargeback
IT Cost Optimization
Federal IT Acquisition Reform Act (FITARA)
Total Cost of Ownership (TCO)
References
- ↑ Defining IT Financial Management (ITFM) Techtarget
- ↑ ITFM Capabilities Upland Software
- ↑ Planning your Financial Management Transformation Roadmap IBM
Further Reading
- Basics of IT Financial Management - What you need to know and why IBM