In today's fast-paced digital world, IT Financial Management (ITFM) isn't just important—it's essential for staying ahead in business. Keeping IT costs under control is a must for organizations wanting to be competitive and agile. Despite this, ITFM processes are still a complex issue for CTOs and IT leaders - especially when trying to communicate their value and necessity to the board.
We recently caught up with our Chief Operating Officer (COO), Dr Alexander Becker, to discuss the importance of ITFM and how Serviceware is empowering IT leaders. We discussed the challenges these roles face day-to-day, and how exactly CIOs can implement more effective practices to overcome them.
Dr Becker has been instrumental in our journey since 2012, guiding our customers through their digitalization efforts. In this interview, he covers:
- Why ITFM is so important for modern IT departments
- How Serviceware can help streamline your processes
- The truth about cost transparency
- How our ITFM software contributes to cost savings
- What impact our ITFM approach has in the real world
- How our ITFM can support green initiatives
- Final words of advice for IT leaders
Can you start by explaining what IT Financial Management (ITFM) is and why it’s so important for modern IT departments?
“ITFM is essentially the planning, control, and management of IT costs and resources. It's all about ensuring your IT spending aligns with business objectives and delivers value.
Now more than ever, technology drives business growth—that’s why ITFM software is essential. It helps you understand the cost of IT services, manage budgets effectively, and make informed decisions.
Plus, with AI investments on the rise, managing IT spend becomes even more critical - that comes with significant added costs. Effective ITFM helps balance these investments, making sure your organization can leverage AI without overspending.
How else could you realistically optimize resources, reduce unnecessary expenses, ”
How does Serviceware’s ITFM software help organizations streamline their financial processes?
“In a word - it offers clarity.
At its core, our ITFM software simplifies and enhances the management of your IT financials. You get a comprehensive view of all IT costs, unlocking better budget planning and cost control.
It integrates with other business systems, offering data consistency and accuracy…And it automates your financial processes…cutting manual effort and the risk of errors.
That’s why it’s unparalleled for improving financial decision-making and operational efficiency. It really does work. Take, for example, Palfinger. Our ITFM software reduced work time for IT cost settlement to just 2 hours per month!”
Cost transparency is a big challenge for many organizations. How does Serviceware address this issue?
“Yes, cost transparency is definitely a major challenge…but it's one we tackle head-on. The thing is, to get true transparency, simply seeing the data isn’t enough. You need to understand it.
We magnify insights into IT costs, breaking them down by services, projects, and departments, making the information so much easier to digest.
That way, you can identify cost drivers and understand the true cost of delivering IT services.
But that’s just one part of it.
Cost transparency can only come if it’s up to date. We wanted to enhance accountability and strategic planning - so real-time data and analytics were a must for our ITFM software.
And it was a real privilege to see this software work first-hand, with Agravis Group’s Finvis Business Services. The ITFM improved their transparency and efficiency, saving 3-4 weeks in planning rounds.”
How does Serviceware’s ITFM software contribute to cost savings?
“If there’s one thing we can all agree on - it’s that transformation projects come at a cost. The problem is, these costs often don’t become clear until it’s too late to mitigate them - sometimes leading to cost baselines multiplying.
Our ITFM software helps you to identify these risks and create value by avoiding future costs. With precise tracking and optimization of IT spending, you can unlock significant cost savings across the organization, which will be music to your CFO’s ears!
For example, at the global technology company ZF Friedrichshafen, their Head of IT Service Management told me ‘By using Serviceware Financial, I effectively have more IT budget available!’ This is what we mean at Serviceware by cutting costs and unlocking value.”
Could you share some more real-world applications of your software?
“Absolutely. We’re proud of the impact our software has had on our partners. I’ve already mentioned Finvis and Palfinger, but there are plenty more…
For instance, at KABEG, the Austrian regional hospital service, our software centralized the budgeting of IT services for all five clinics, giving them a comprehensive overview of all processes.
And, at EOS Group, a leading provider of claims management in Europe, we transformed their processes, allowing them to manage their services centrally to significantly reduce manual effort and improve transparency.”
Sustainability is becoming increasingly important. How does your software support Green IT initiatives?
“Now this is a hot topic, and rightfully so. Our software isn't just about managing finances— with it you can also enhance your eco-friendly practices.
By giving organizations detailed insights into their resource usage, we help them identify areas for improvement. Whether that’s reducing energy consumption or optimising hardware usage, we’ve made it so our platform empowers businesses to embrace Green IT initiatives.
I think it’s important to remember that we integrate seamlessly with sustainability reporting tools too - so making tracking and reporting environmental impact is easy. Which, at the end of the day, is the most important thing.
Because if impact isn’t well tracked, it’ll never truly be prioritized.”
What advice would you give to IT leaders looking to implement ITFM software?
“I’d say, start with a clear game plan. Understand your organization's goals inside and out. Get key stakeholders involved from the get-go to ensure everyone's on board. Pick a software solution that fits your needs like a glove and can grow with you. And don't forget about training and change management—making sure your team is ready for the switch is key to success.“
To sum up
ITFM software has the power to unlock incredible potential in your business, it:
- Ensures IT spending aligns with business objectives and delivers value in today's tech-driven environment
- Simplifies IT financial management, providing a comprehensive view of all IT costs. Enabling better budget planning, and cost control
- Offers detailed insights into IT costs, breaking them down by services, projects, and departments, aiding in cost control and strategic planning
- Generates results in various real-world scenarios, including streamlining financial processes at KABEG and reducing manual effort at EOS Group
- Promotes eco-friendly practices by providing insights into resource usage, helping organizations identify areas for improvement and integrate seamlessly with sustainability reporting tools
Remember! When approaching ITFM, start with clear objectives, involve key stakeholders from the beginning, choose a flexible software solution, and prioritize training and change management.
Streamline your IT financial processes and drive strategic success
To learn more about how our ITFM software can benefit your organization, book a demo with us today.
