IT tools for financial management – ​​consideration and selection criteria

0

What is an ITFM tool?

Think of a IT tool for financial management (ITFM) as software specifically designed to help executives, CIOs, and CFOs understand and specifically manage their IT costs.

Current financial systems use the same general ledger and account structure for many decades, when computing only uses unique structures that can cost hundreds of millions or billions of dollars. This current system does not support executives, CIOs, and directors to specifically manage their IT costs.

Looking back 20 years, everyone built their IT cost models using Excel because there was no tool related to ITFM or Technology Business Management (TBM). Fortunately, there are now distinct ITFM solutions that can help simplify cost transparency and ease the financial process.

Why ITFM tools are crucial

The MagicOrange platform is really built on the idea of ​​solving the problem of IT cost transparency that many organizations face today – not having full transparency of overall costs.

The MagicOrange platform makes it very easy to identify expenses in all divisions and provides this information at a glance via a dashboard. Simply put, ITFM is about providing transparency, whether it’s IT costs or other business-related costs.

Gartner predicts that by 2024, 70% of CIOs will have a dedicated ITFM system or tool to help clarify and analyze total IT spend. Gartner recommends early adoption of a tool specifically designed to support growing demands for cost models, allocation flexibility, and data complexity. MagicOrange is that tool. When you run an organization with a budget of over $50 million, managing the financial system is a very difficult task. Manually entering large volumes of data into Excel is time consuming and prone to human error. With MagicOrange, data flows from the company’s financial system to the ITFM platform. CIOs and CFOs can see real-time server utilization, storage, database costs, cloud adoption percentage, and more.

If the right ITFM platform is implemented, there is a low likelihood that people will revert to manual data entry in Excel. However, it should be kept in mind that not all tools are created equal – some focus primarily on software implementation rather than required precursors such as data preparation, to gain value.

A turning point – organizations must embrace

Companies don’t think cost transparency when they are doing well and making money. However, when the economy starts to get tougher and the economic downturn hits, they will start looking for where the disparities in their costs are.

With economic instability and inflation at an all-time high, more and more organizations are looking into MagicOrange’s cost transparency platform than ever before. It is far better to be prepared and benefit from an ITFM tool now than to wait for another global crisis to occur in the future. When they do, companies will already have a solution to alleviate some of these challenges.

The challenge of implementation and advice

There is a big gap in the industry between ITFM platform and consultants. MagicOrange bridges this gap by being a more practitioner-led product.

MagicOrange has created a unique framework called the ITFM’s Path to Successwhich provides a planned series of steps that must be taken over a period of time in order to obtain the benefits of a effective computer financial management program. This framework helps customers understand what is needed to help them drive cost optimization across their organization by addressing savings initiatives systematically and holistically, from both the IT supply and business demand perspectives. Additionally, MagicOrange’s Customer Success Team provides consulting support throughout the implementation phase as well as post-implementation to ensure benefits are realized.

Implementation process

Every ITFM solutions company is different – ​​with a dividing line being having the ITFM tool in the cloud or on premise. MagicOrange is a cloud native toolallowing it to provide support and be implemented from anywhere in the world.

Using the ITFM Pathway to Success FrameworkMagicOrange will assess and plan, provide service definition and data readiness, to ensure the implementation is successful and customers can realize the benefits once they start using the platform.

Learn more about the first three stages of the ITFM journey:

Step 1: Assess and plan

Step 2: Service Definition

Step 3: Data preparation

MagicOrange is the ITFM tool of choice

MagicOrange is recognized by GartnerForrester Research and OMDIA as an established and leading ITFM tool. The tool has a very flexible approach and can easily adapt to any taxonomy. The flexibility gives MagicOrange a real advantage when it comes to expanding beyond IT and to include other divisions of the business.

Four main criteria make MagicOrange the tool of choice.

Platform Capabilities

Utilisation facility. MagicOrange has a flexible approach that adapts according to customer needs. Once the platform has been successfully implemented and customers trained, it becomes a self-service solution. This does not only apply to IT, but to all aspects of the business, for example finance, operations and all other business functions.

Cloud-native approach

MagicOrange uses a cloud-native approachthat offers increased flexibility, reliability, scalability and security allowing you to invest your time, money and resources in achieving your core business strategies.

Benefits versus value

Adopting an ITFM platform can be expensive, so it’s important to compare the costs and benefits of each of the available platforms. This is to ensure that companies adopt the best tool with the best price without any additional cost down the line. MagicOrange does not use a modular cost approach and does not incur any additional costs after implementation. Advice and services are included in the cost of the subscription.

Customer support levels

Many ITFM platforms in the market do not support businesses after implementation. Customers are expected to pay more for any additional consultation or assistance. With MagicOrange, consulting services are provided as part of the initial cost once the tool is implemented, to ensure the implementation is successful and the benefits are realized.

It is also important to understand the type of services provided by the different ITFM tools. MagicOrange provides both the tool and consulting services at no additional cost.

At MagicOrange, customers will be assisted through their IT Financial Management/TBM and journey towards cost transparency to drive profitability and unlock value. The Gartner-recognized MagicOrange solution helps customers understand their profitability and costs, enabling them to efficiently utilize assets, show accurate profit margins, and reduce manual effort. This provides the end customer with actionable insights that will drive their business transformation and future growth after implementation.

Visit our website to learn more about MagicOrange and see how ITFM can benefit your business: https://magicorange.com/

Share.

About Author

Comments are closed.