IT Cost Transparency Across the Enterprise

1
IT Cost Transparency Across the Enterprise

• Prepared by and proprietary to Financial and
  Information Technology Consulting Inc.

2
Business Challenge

• Cross-enterprise IT cost transparency views
  are needed to better predict and develop
  alternatives on how to move the business forward
• IT cost transparency across business levers
• IT cost transparency in product
  profitability
• IT cost transparency organizationally (Security
  Ops)
• The initial priority is to document the Total
  Technology Cost for frame
• of reference when enterprise costing

3
The Order and Execution Utility Model Defines the
Enterprise Path of IT Service Delivery and Cost
On An Absolute, Per Trade or Execution Basis
Customer Statements
On-line Access
Books Records
E-Commerce Platform
Mainframe or Distributed Data Center
Advisor Trading Platform
Exchanges/ Boards
Store Forward System
Network
DTC
Product Specific Systems
Fully allocated cost for each core processing
component and critical application
Depreciation, eq. maint., market data, SA and
DBA costs, IT production support, Overhead etc.
Securities Pricing
The Data Warehouse
FA Comp
International
New Projects Impact to the Utility
Incorporating busy hour performance defines
element capacity utilization in the chain
What are the IT costs to process a US exchange
based security? Different for on-line vs.
retail vs. international
4
The Order and Execution Utility Model Addresses
IT Cost Transparency in Reporting Across the
Enterprise

• An analysis that integrates business process,
  technology pathing and cost
• The model varies by business segment, by country,
  by business lever but leverages common unit cost
  of service technology path components
• Provides an end to end view of IT service
  delivery as processed through the utility
• Accomplished by time studies, workflow review,
  cost analyses and capacity studies (phased
  approach)
• Institutionalized, if desired, via integration
  with an activity based costing program
• Reconciled to total technology costs

5
IT Cost Transparency on Product Profitability and
Organization Levels Becomes an Extension of the
Utility Model.

• upon adding/extracting product identifier data
  into the data strategy
• upon determining product driven technology
  paths, cost, product volumes and capacity
  utilization
• What does it cost IT to order and execute a
  Retail Brokerage IRA?

Unique IRA Product Systems Applic. Charge
Common Platform Unit Cost
Common Network Unit Cost
Common Data Center Unit Cost
Unique IRA Customer Statement Tax Charges
Common Ops Technology and Unique IRA Books
Records Charge
Absolute Cost Calculated By Adding Unique Costs
Plus Common Unit Costs x Product Volumes
6

• Engaging FIT Consulting Will Provide Measurable
  Benefits to Your Critical Technology and Business
  Process Service Paths
• Contact Charles Bernacchio, President
• Office 678.624.1944Cellphone678.557.3554
  E-Mail Charles.Bernacchio_at_FITconsultinginc.com