The Cigref proposes a Model for Analysis and Benchmarking of IT Costs based on the Activity Based Costing (ABC) method. The ABC method allocates costs from Resources to specific Activities that generate them, thus providing a more precise and detailed view of costs.
Similarly, the Cigref model uses resource and activity repositories to allocate IT costs accurately and relevantly. Powerful and shared, this tool thus helps IT Directors (CIOs) better control and manage their IT costs by being more efficient and strategic.
If you are not yet familiar with the ABC Method, we recommend that you first read our article on the ABC method (Activity Based Costing) to understand its concepts and operation, and thus more easily those of the Cigref model.
The model was designed to:
The Cigref model proposes a structured approach to staging resources and activities. Resources include all elements necessary for the operation of IT services, such as hardware, software, infrastructure, and personnel. These resources are then allocated to specific activities, which represent the various tasks and processes carried out by the IT department. Each activity is analyzed in terms of costs and performance, precisely allocating IT costs. This approach helps to better understand the financial impact of each activity while identifying opportunities for optimization and cost reduction.
The Cigref model groups IT activities into three main categories: RUN, BUILD, and MANAGE.
This grouping concerns activities related to the operation and maintenance of existing systems.
Examples of activities:
This grouping includes activities related to the development and implementation of new systems and applications.
Examples of activities:
This grouping covers activities related to the management and governance of IT resources.
Examples of activities:
The model integrates technological and business evolutions of IT, thus providing economic management adapted to the new realities of CIOs. It takes into account:
Flexible, Easy Orga helps you achieve any form of modeling. The model proposed by Cigref for CIOs is therefore naturally part of it.
Once modeled, all your decision support tools await you and are automatically coupled, calculated, and visually represented: Consumption of resources and activities, Cost Transfers to obtain the Total Costs of each modeled object, possible Revenues (such as internal recharges) to determine Profitability and Evaluation of rendered services.
Here are the representations of a simplified version of this Model on Easy Orga, without intermediate staging of Activities and with standard services found in CIOs:
