The Nationwide Building Society has put in place a full service IT services catalogue to provide greater transparency of IT costs.
“We needed a new way of looking at demand and we needed a way to bring all that data together,” said Debra Bailey, group services director for Nationwide Building Society.
The project involved transforming the IT department into a services-based organisation, deploying a technology business management (TBM) tool from Apptio and changing the way business and IT people work.
Richard Rogers, head of business management group services at Nationwide, said: “We needed a method to bring clarity and transparency to the way we counted the cost of IT, and to be able to connect it to things like property costs to really understand the cost of services provision.”
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Matching IT demand to business needs
The Apptio tool enables the business and IT staff to review generated reports, which, according to Apptio, allows them to understand how consumption decisions are affecting costs and make necessary adjustments.
This helps to ensure demand and capacity management decisions are in line with the business, Nationwide said.
TBM reports are built around objects such as applications, servers and storage. People from IT and the business interested in a given object hold regular meetings where a service manager can discusses costs, consumption and requirements.
Nationwide also established a TBM steering group comprising senior managers from each stakeholder group. The steering group provides an approval and escalation path for cost allocation decisions and prioritises the development of TBM technology.
According to Nationwide, TBM has introduced awareness of capacity planning into the decision-making process, allowing the business to exploit unused or underused resources.
“TBM has been introduced with cost dimensions and associated language, raising awareness of the elements of cost, cost allocation strategies and the concepts understanding of cost and quality of decision making,” said Rogers.