This presentation introduces the concept of ITFM as a managed service.

1. ITFM as a Service
(ITFMaaS)
Ernst & Young Perspectives
ITFMA – Chicago: April 21, 2016
Pete Hidalgo

2. Page 2 Competitor analysis
Agenda
What is ITFMaaS2
Benefits of ITFMaaS3
1 The need for managed services
Potential services4
Q & A5

3. Page 3
Market Understanding: Demand view
Enterprises are not satisfied with their existing service providers’ ability to
provide strategic talent, analytics, restructured processes, new technologies
Source: HfS Enterprise Survey, 2014
How satisfied are you with your primary service providers’ performance to meet each outcome?
Findings from 2014 Services & Outsourcing Market Study
IT managed services were created to address these gaps

4. Page 4
The trend to “as a service” (aas)
Started with software and infrastructure

5. Page 5
When to use ITFMaaS?
Current
State
Assessment
Service
Definition
Unit Service
Costing
Metrics &
Usage
Reporting
Chargeback
Model
Bill of IT
ITFMaaS
EY – ITFM Journey
► Once ITFM processes have matured and are stable
► When additional support is required on a temporary basis
► For ongoing support of an ITFM tool

6. Page 6
What is ITFMaaS?
Based on ITIL - ITFM processes

7. Page 7
Benefits
1) Cost avoidance - no need to hire or train additional staff
2) Speed – services can be quickly provided once the initial
contract is put in place
3) Flexibility – services can be added or removed and in varying
quantities based on demand
4) Cost effectiveness – costs may be lower depending on the
services selected and contract terms
5) Insights – the managed services provider should be able to
provide ongoing key insights as a result of performing ITFM
processes and having access to data, such as cost reduction
and application rationalization

8. Page 8
Potential services
Candidate services would be selected based upon your specific needs
1) ITFM tool changes/updates/upgrades
2) Allocation model changes
3) Service costing and benchmarking
4) Service catalog updates
5) Application and Site TCO analysis
6) Financial budgeting, analysis, and reporting
7) Project portfolio planning and evaluation
8) Asset register management
9) Vendor and contract management
10) Continuous improvement in ITFM process maturity
11) Telecom expense management guidance
12) Ongoing consultation, advice, and communications materials

9. Page 9
Potential pricing models
► You should expect a multi-year contract
► T & M
► Services would be provided on a time and materials basis using a
labor rate card
► Fixed fee
► Defined services and activities
► Set number of hours of support
► Set number of days on site

10. Page 10
Potential services and activities
# ITFM Tool
1 Ad hoc data and information requests
2 New dataset uploads
3 Monthly stakeholder presentation creation and reporting (actuals, budget,
variance, etc.)
4 Ongoing data outlier discovery, investigation, and reporting
5 Support ongoing reporting requests (inquiry, minor changes)
6 Ad hoc report creation
7 Monitor and assess progress against recommendation roadmap and
ensure alignment with organizational direction
8 Develop quarter end reports, assessments, analysis, communications,
roadmap progress evaluation, and quarter over quarter performance
review
9 Minor configuration updates to mature models and meet roadmap
objectives; liaise and provide data requirements to support configuration
efforts

11. Page 11
Potential services and activities
# ITFM Tool
10 Moderate configuration updates to mature models and meet roadmap
objectives
11 Major configuration updates to mature models and meet roadmap
objectives
12 Develop year end reports, assessments, analysis, findings,
communications, roadmap progress evaluation and new roadmap
creation, year over year performance review
13 Support and administer budget cycle includes creating communications,
monitoring alerts, tracking progress, ad hoc tool support
14 Add or change user access request
15 Security or accessibility change per user
16 Software/platform upgrade support and implementation
17 Couple resource usage/capacity data with cost in model to report on
performance efficiency metrics
18 Incorporate non-standard ITFM tool modeling (tax, legal entity,
labor/PPM hours etc.)

12. Page 12
Potential services and activities
# Excel allocation model changes
19 Update departmental budgets
20 Update service quantities
21 Update rate card
22 Update application and site TCO
Benchmarking refresh
23 Perform IT spending and staffing benchmarks
24 Perform unit service cost benchmarks
25 Provide benchmarking report and recommendations
Service catalog updates
26
Develop and document new services
27
Review and revise SLAs
28
Update and issue new catalog

13. Page 13
Potential services and activities
# Application TCO
29 Collect application profile data
30 Collect application consumption data
31 Calculate application TCO
32 Perform application portfolio analysis and identify rationalization
opportunities
Financial planning
33 Develop OPEX budget templates
34 Develop instructions and communications materials
35 Collect department budgets, compile and analyze results
Service catalog updates
36 Develop and document new services
37 Review and revise SLAs
38 Update and issue new catalog

14. Page 14
Potential services and activities
# CAPEX budgeting and portfolio management
39 Develop CAPEX budget templates
40 Develop instructions and communications materials
41
Collect department budgets, compile and evaluate each project using
VCR framework
42 Analyze and present results
43 Facilitate project prioritization and selection
44 Track and manage project expenditures
Asset / Depreciation register management
45
Review asset register monthly and identify misclassified or unclassified
assets and correct
46 Review process and provide recommendations for improvement
47 Monitor and report on progress

15. Page 15
Potential services and activities
# Vendor and contract management
48 Collect and analyze vendor spend and cost data
49 Develop performance management scorecard
ITFM process maturity improvement
50 Monitor and assess progress against recommendation roadmap
51 Provide guidance to overcome obstacles
52 Reassess maturity and provide recommendations and revised roadmap
Telecom expense management
53
Provide guidance to implement a TEM program, which includes RFP
process support, vendor selection, implementation PM
54 Ongoing benefits realization and analysis

16. Page 16
Peter Hidalgo, Jr
ITFM Services Leader
Senior Manager
IT Transformation
Advisory Services
Ernst & Young LLP
5 Times Square
New York, NY 10036-6530,
United States of America
Pete.Hidalgo@ey.com
Mobile: 973-223-5616
Education
West Point - USMA
BS – Engineering
Columbia University
MBA
Certification(s)
PMP
ITIL Financial Management
► Senior Manager with over 20 years of experience in I.T. Financial Management, Telecom and I.T. infrastructure,
Cost Optimization, Program Management, and I.T. Shared Services Transformation.
► Deep industry experience in managing and optimizing I.T. costs. Previous responsibilities included serving as the
Global I.T. Financial Manager for a Fortune 100 company, where he managed an annual operating budget of over
$100 million. In that role he also developed and implemented an ITIL based service costing and chargeback
process, resulting in improved client satisfaction and major, recurring cost savings.
► Currently serves as the I.T. Financial Management Service Leader within Ernst & Young’s IT Advisory practice
Relevant experience
► Assisted a Fortune 50 global manufacturing client with redesigning their current IT allocation model and
processes for over $1 billion in annual spend
► Advised a Fortune 50 pharmaceutical client with improving their IT financial management processes, cost
transparency, data management, chargeback model redesign, service owner framework, and automation
► Advised and assisted a leading media and entertainment company to transform their IT operations into a shared
services model encompassing 11 major service domains. Also assisted in the development of a data center
strategy, a WAN architecture review, and a detailed IT service cost analysis, to include the development of a
service catalog, and a chargeback model.
► Assisted in an IT infrastructure (voice, data, and data center) strategic assessment and financial analysis for a
Fortune 500 corporation, which resulted in identifying the strategies to improve network and data center
performance and availability, in addition to saving $32M - $53M over three years in IT operating expenses.
► Supported an IT Cost Optimization study for the premium spirits and wine supplier in the U.S., which addressed
their telecom and infrastructure spend. Identified annual savings of 10% to 19%.
► Advised in the strategic assessment of the voice and data networks for a Fortune 500 high tech manufacturing
firm, which resulted in a new technology direction (VOIP) and Identified over $9M in annual savings.
► Assisted in performing an IT Operations strategic assessment for a Fortune 100 manufacturing corporation,
focusing on data center consolidation. Developed data center consolidation and disaster recovery strategies, in
addition to Identifying over $5M in annual savings.
► Advised a leading medical device manufacturing company in the evaluation of their outsourced infrastructure
service contracts, resulting in overall savings of $5M - $6M, or 35% - 45%.
► Assisted a Fortune 100 consumer staples company with the assessment of their wireless telecom services
contracts, resulting in overall savings of $6M - $9M, or 45% - 55%.

17. Page 17
Q & A

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