HP has unveiled an offering in its IT Financial Management portfolio to help CIOs establish financial transparency and take action in areas where they can optimise costs. Vice president strategic marketing for HP software products, Paul Muller, says the financial planning and analysis offering enables CIOs to run IT like a business and demonstrate the value of IT services.
“A big issue we are seeing at present for CIOs is compliance issues. How do I connect cost to value? It’s that question that makes IT financial management imperative for today.”
The financial planning and analysis software combines a financial planning and analysis capability linked to a financial data model. It consolidates financial information from project, asset and configuration management systems, as well as enterprise resource planning software.
Muller says it is a complex problem for a CIO to get financial transparency.
“They’ve got to go down into the data and this data is all over their environment. They have to track all this data and normalise it. The process by which this has gathered is usually manual and often not best practice.”
If you are a CIO turning up to a boardroom with this type of IT financial management approach it’s like turning up to a gunfight with a knife.”
He adds that the software brings in visibility and exception based reporting on critical financial metrics.
In a recent survey conducted by Penn, Schoen and Berland Associates for HP of more than 200 IT leaders in countries such as Australia, 70 per cent of the 200 respondents to the survey indicated that they believe that demand from the business will outstrip IT’s ability to supply in the future.
While 66 per cent of senior IT leaders said IT-spending transparency is “very important” to their business stakeholders, only 44 per cent reported that their stakeholders are “very satisfied” with their organisations’ spending transparency.
US based John Hancock Financial Services CIO Allan Hackney says HP is helping the company enhance operational and strategic decision making by identifying ways tor drive more value to the business, while driving out inefficiencies.
“Our IT organisation is better able to attract internal capital for investment by managing itself like a business in a transparent, fact-based manner.”