TABLE OF CONTENTS But this was just one example. What are the most common pitfalls when implementing a transfer charging regime ? In other words, what are the critical failure factors (CFFs)?
Introducing IT transfer charging without any clear understanding of (or communication of) its objectives, how it is going to achieve these objectives and the difficulty, complexity, costs and risks associated with it. ( ESPs do this and we want to be seen to be more like an ESP, don t we. The word duh comes to mind.)
Not allocating the entire cost base to the services sold or cross-subsidizing services or simply not allocating costs accurately to services, resulting in users not having a true picture of the cost of service provision. This may be done consciously by the IT function for services that are readily comparable with those of ESPs to make them appear as though they are competitively priced. ( Please don t outsource us because, look, we are competitive in the marketplace. )
Not making provision in the pricing structure to fund such costs as infrastructure refresh, product development, research, disaster recovery infrastructure etc. ( I didn t ask for any of those things so I m not paying for them. )
Defining chargeable services in such a way as to be easy for IT to measure rather than defining them in an end-to-end way that relates to the user s experience of the service, e.g. billing for utilization of the WAN/LAN, mainframe MIPS etc. rather than...
