TECH BUYER Oct 2017 - IDC Perspective - Doc # US43104417

IT Financial Management for the New IT Business Model

By: Robert MulthaupAdjunct Research Advisor

Abstract

This IDC Perspective discusses IT financial management for the new IT business model. With the digital transformation forcing IT to compete on the open market, IT needs a new business model to run IT as a viable service business. This requires a "beefed up" IT financial management governance capability to support complex business decisions using advanced managerial accounting best practices. Financial management is an essential pillar of a service-based IT business model, along with IT service management, IT product management, and IT performance management.

"IT financial managers can use managerial accounting techniques to express IT performance in terms of real IT service contributions in real financial terms," says Bob Multhaup, adjunct analyst with IDC's IT Executive Programs (IEP). "When IT services can be evaluated based on their competitive positioning and clear added value, then management can make informed business decisions that result in real competitive advantage."


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