Download IT Pricing Model Implementation Checklist
Gain an understanding of the underlying costs structure. IT costs are typically broken down into cost centers aligned to the management structure. A ese cost centers will have to be converted into service costs once the services have been defined.
Document the current pricing model, including services, allocation measurements, and service recipients. A current state will need to be compared to the new model to determine the change/impact to service recipients.
Interview service providers and service recipients to gain an understanding of the issues with the current cost allocation model and the perceived value of the services provided by IT.
Define new services based on research, benchmarking information, and the overall strategy of the organization. As mentioned earlier, there are several models that can be used.
Define service descriptions and process for allocating the underlying people, hardware, software, facilities, etc. to each of the services.
Prepare a model of the new pricing model with a comparison to the old pricing model. A is information will be needed to determine the impact of the change and to gain approval/ agreement for the new model.
Gather the IT measurements available at the level of granularity required to allocate the costs. Verify that the information is accurate and can be produced on a monthly basis. Also, document the process for gathering and reporting the information to ensure auditabilityand consistency.
Develop a proposal for the new pricing model to gain approval from the chief information officer (CIO), CEO, and CFO. Senior management support is crucial for implementing a change, as there will be disagreement from the individual service recipients.
Develop SLAs that document the pricing model, payment terms, service description, service levels, and allocation measures. A is document forms the basis for charging services to the service recipient and tax documentation and should be reviewed and approved by legal, finance, and tax.
Communicate new pricing model, services, and impact on service recipients. A formal presentation showing the change, reason for the change, and approval from senior management is helpful in gaining buy-in from each of the service recipients.
