The 7 Deadly Sins of IT Cost Allocation

Enterprise architecture tools provide a company with a map of its technological infrastructure and processes. This map enables leaders to drive the transformation of their organization with focus, towards a clearly defined state.

In restaurants, why is salting at the table not charged according to used grains of salt? Wouldn’t you as a guest find this fair and wouldn’t you change your salting behavior?

When you translate professional methods into everyday life, it is often very astonishing what such methods are. Bee360 is based on many proven leadership principles. This also includes the fact that only management-relevant aspects are reflected and nothing is implemented for its own sake. Especially in IT cost allocation, there is a practice-oriented approach that focuses on strategic cost optimization.

Mistakes in the cost allocation often prevent IT from being perceived as a partner at eye-level. To help you avoid this situation, we have listed the 7 deadly sins of IT cost allocation below:

1. Charging as a tool for changing consumption patterns
2. Incomprehensible, too detailed product and price determination
3. High manual effort
4. Insufficient communication
5. Lack of fairness at board level
6. Neglecting contractual and tax aspects
7. Discussing IT costs at the wrong level

Charging is often regarded as an instrument for changing consumption patterns. An example of this is the reduction of printing costs through page-based billing.

But: Do you really use less salt if the salt is charged according to used grains? And if so, how would the tasteless food affect your mind? Most likely not for the better. Cost optimization on product level is dangerous and can lead to a reduction of productivity as a result of poorer work equipment due to savings. IT should not decrease value creation by reducing costs, but support it in an optimal way. This is achieved by optimizing IT costs at the source level, where we can find the really relevant costs. The starting point for this is an efficient service model.

Are you interested in the resolution of the remaining deadly sins of IT cost allocation and the following questions from everyday life?

• • Do the cost of the ingredients or the price of the dish affect your choice of meal?
  • Do you eat more if the buffet is constantly replenished?
  • Do you consume less salt if the salt is charged according to used grains?
  • Does the cost calculation of the all-inclusive holiday help you to decide whether the food tasted good?
  • Does transparency of the ingredients have a positive effect on the taste of the food?
  • Does the acceptance of a participation fee increase with the transparency of its calculation?
  • Do you get a refund from your all-inclusive holiday if you use less towels?