Total cost to perform the process group "manage enterprise information", excluding depreciation/amortization, per $1,000 revenue

This measure calculates the total cost (excluding depreciation/amortization) per $1,000 revenue to perform the process group "manage enterprise information," which consists of understanding what information is important to the enterprise; determining how, when and from where that information is collected; defining how that information is structured and organized; and establishing the policies and controls needed for the collection and use of that information. The total cost is the sum of outsourced, overhead, personnel, system, and other costs. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "manage enterprise information."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
105007
Total Sample Size:
850 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are Dollars.

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(Total annual IT cost (excluding depreciation/amortization) * Percentage of total IT cost (excluding depreciation/amortization) allocated to IT operating cost * Percentage of IT operating cost (excluding depreciation/amortization) dedicated to process group "manage enterprise information" *.0001) / (Total business entity revenue * 0.0010)

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.1.0)

  • 8.4.1 - Develop information and content management strategies (10583) - Creating strategies to administer information and content. Understand the needs of the organization for information and content management. Realize the role of IT services for implementing the overall business strategy. Assess the implications of new technologies for managing information and content. Identify and prioritize the most effective and efficient actions for managing information and content.
    • 8.4.1.1 - Understand information and content management needs and the role of IT services for executing the business strategy (10654) - Assessing and understanding the requirements, as well as the utility, of the IT function in implementing the knowledge management process. Acquire, distribute, and archive/delete information. Executing IT solutions for the overall business strategy of the organization. Correlate the IT strategy with the overall business strategy.
    • 8.4.1.2 - Assess the information and content management implications of new technologies (10655) - Evaluating the impact of new technologies in administering information and content. Evaluate and analyze the use of the new technologies in managing the information and content systems. Leverage a management information systems for efficient and strategic decision making. Leverage a transaction processing system, decision support systems, expert system, executive information system, etc.
    • 8.4.1.3 - Identify and prioritize information and content management actions (10656) - Determining the appropriate and effective actions for managing information and content in order to prioritize them. Recognize which information management and content management actions hold more importance by assessing their effectiveness and efficiency. Prioritize actions in context with the information and content management strategies.
  • 8.4.2 - Define the enterprise information architecture (10584) - Establishing the architecture of the organizations' information. Establish data custodianship by selecting data custodians. Make the necessary changes to the content data architecture.
    • 8.4.2.1 - Define information elements, composite structure, logical relationships and constraints, taxonomy, and derivation rules (10657) - Defining the bounds, rules, diction, and the logic that make up the skeletal framework of the organization's information architecture. Clearly delineate information attributes that flow through the IT framework, along with the overarching structure, the circumference of operations, the logic and syntax of the languages used, and the rules of derivation employed. Delineation is for reworking and remodeling the enterprise information architecture from industry best practices and legacy blueprints.
    • 8.4.2.2 - Define information access requirements (10658) - Establishing needs for accessing information. Address issues related to information including copyright, open source, privacy, security, etc.
    • 8.4.2.3 - Establish data custodianship (10659) - Determining who will be responsible for the safe custody, transport, and storage of the data and implementation of business rules. Determine who will be responsible for the technical environment and database structure.
    • 8.4.2.4 - Manage changes to content data architecture requirements (10660) - Implementing changes to meet content data requirements. Make necessary changes to the process of designing, creating, deploying, and managing an organization's data architecture.
  • 8.4.3 - Manage information resources (10585) - Administering information changes. Define information/data rules, regulations, and standards. Develop and manage the administration of the data/information and content of the enterprise.
    • 8.4.3.1 - Define the enterprise information/data policies and standards (10661) - Outlining and establishing policies for information/data, and setting information standards. Establish laws, regulations, and policies to regulate the creation, use, storage, access, communication, and dissemination of information. Define information standards to maintain.
    • 8.4.3.2 - Develop and implement data and content administration (10662) - Developing and executing administration policies for data and content. Create strategies for processes and technologies that support the collection, managing, and storing of information in any form or medium.
  • 8.4.4 - Perform enterprise data and content management (10586) - Executing data and content management. Define the sources and destination of content data. Manage the technical interfaces for the users of the content. Revise, retain, and retire information.
    • 8.4.4.1 - Define sources and destinations of content data (10663) - Establishing the sources for obtaining content data and the destinations for delivering content data. Evaluate the various sources and destinations for content data. Strategically select the sources and destinations that maximize the efficiency of data and content management.
    • 8.4.4.2 - Manage technical interfaces to users of content (10664) - Managing and improvising the interface for the users of content data. Manage the user interface, software interface, and hardware interface.
    • 8.4.4.3 - Manage retention, revision, and retirement of enterprise information (10665) - Administering the information to be retained, refurbished, and disposed. Examine and judge the efficiency of the present information using various techniques to decide which information is to be retained, revised, and retired.