How to utilize TM1 Planning Analytics functionality for your Technology Allocations
Allocation Technology and other Service charges back to the departments is typically a difficult exercise for most organisations. There is a large amount of different data sources , data mapping, calculations and reporting capability required. This is just for the actuals – forecasting accurately is usually a bridge too far for most organisations. It does not have to be this difficult!
Why do we need to allocate charges – It largely influences the behavior and ensures that departments incur appropriate level of expense based on their usage. With larger enterprises it also has tax implications when service provider and receiver are in different countries or jurisdictions. (Transfer pricing is high on radar of most governments and the largest of our corporations)
Accurate allocations also provide transparency to both the department heads and the CIO’s on the cost base and its distribution. It is crucial in planning supply and demand of IT services.