IT Executive Scorecard and Financial Management Practitioners Forum

HP’s Executive Scorecard provides IT Financial Management to help understand where the money goes

Uri Maoz
Super Contributor.

HP’s Executive Scorecard provides IT Financial Management to help understand where the money goes

IT organizations are currently going through massive changes thanks to clouds, mobility, big data, and more.

While researching these alternatives the question that comes up is how to pay for these new agendas in a tough economic environment that constantly requests IT to do more: deliver flexibility, support agile development, and improve time-to-market with lower budgets. The answer is that IT organizations need to be brokers of services and gain efficiency by retiring parts of the existing portfolio, and by better managing what is left.


The first step in this journey is to obtain the needed transparency and to understand where the money goes in relatable business terms. Today more than ever, IT organizations need to be able to answer what is the services/applications total cost of ownership and their components cost – infrastructure, network, support and more. Currently, creating that level of transparency is tedious manual work that is based on Excel files and can take weeks to generate. To create such reports, the IT managers or an IT Ops financial analyst must:


  1. Collect the financial data into one Excel file – In most cases financial data is spread across different systems and mostly in various Excel files. The analyst must correlate all the information into one Excel file.
  2. Allocate the cost data to different services – Every cost item should be allocated to the right service. During processing, the analyst must find the right way to allocate the cost of shared resources to the right services. (How do you allocate cost of a database that serves more than one service? How do you allocate the support cost to the various services?)
  3. Define the relevant data breakdowns – Capex versus Opex, Discretionary versus non-discretionary, and more.
  4. Perform the relevant analysis and aggregate the results into one Excel file.
  5. Create Excel reports to present the results to the relevant stakeholders.
  6. Adjust every month to ensure analysis remains accurate


Now, imagine you are this analyst… Wouldn’t you prefer to have an automatic solution that would prevent all that hard manual work, and enable you to present answers in near real time to all relevant stakeholders? You can do all that and more when you use the ITFM capabilities of HP’s IT Executive Scorecard!


IT Executive Scorecard (XS) Financial Management enables you to:


  1. Schedule the automatic collection of financial data from various sources into the XS data warehouse.
  2. Create allocation rules that enable the automatic allocation of different cost items to the different dimensions: Cost of service, Capex versus Opex, Discretionary versus non-Discretionary, and more. You can also define rules to allocate the cost of shared resources.
  3. Run “what if” scenarios to make sure you created the right allocation rules.
  4. Present that information to relevant stakeholders when requested.



Spreadsheets can be unreliable and lack governance and you have to do all the manual work of converting information from cost centers into business-friendly terms like Services and Applications. By using IT Executive Scorecard Financial Management, you can dramatically reduce the manual effort and gain time and the needed level of transparency to actually manage your IT like a business and convey IT’s value to the business.


I discussed and presented this solution numerous times in the past few months with various clients and every time I present it, I get the feeling this solution is an answer to their most burning problem. The quote I liked the most is – “you probably have customers chasing you to get this solution”.

For more details about XS ITFM, please reach out to IT Executive Scorecard