IDC PlanScape: Unit-Based Costing to Optimize IT Performance
This IDC PlanScape explores why unit-based costing is important, what it is, who the stakeholders are, and how an IT organization, in close partnership with the business, can exploit it to optimize IT performance. "For the IT function to operate and compete as a digital business, IT can emulate the best practices of the great SaaS companies and FinOps leaders. From a cost and performance management perspective, this requires excellence in performing unit-based costing to link costs to business outcomes," says Robert Multhaup, adjunct research advisor for IDC's IT Executive Programs (IEP).
Please Note: Extended description available upon request.
- IDC PlanScape Figure
- Executive Summary
- Why Is Unit-Based Costing Important?
- What Is Unit-Based Costing?
- Who Are the Key Stakeholders?
- How Can My Organization Take Advantage of Unit-Based Costing?
- Define the Product and Its Capabilities
- Capture Product Costs on a Per-Unit Basis
- Calculate Asset Costs
- Calculate Resource Costs
- Calculate Fully Loaded Product Costs
- Identify the Customers and Relative Consumption and Cost Per Seat
- Measure the Business Contribution to KPIs and Business Outcomes
- Advice for Technology Buyers
- Related Research
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