In LeanIX, a traceable cost management fostering management decisions is implemented. This means that it is not the goal to have accurate costs in LeanIX. Instead, you should aim to find a level that is easy to maintain, while meaningful at the same time. Learn more about typical reports here:
LeanIX allows to manage cost in two ways: Run costs are managed at the relation between IT Component and Application, while change costs are managed as attributes of projects. For both types, LeanIX supports two types of analyses:
a) Link cost to producer
Every IT Component or Project can bear cost elements. Find out directly at the producer Fact Sheet how much.
b) Analyze cost per consumer
Use reports and exports to answer e.g. the following questions:
- How much do we pay a provider?
- How much does a technology cost?
- How much build cost do we spend for applications?
Good to know
In the following, the standard mechanisms to manage costs in LeanIX are shown. As costs is a complex and sensitive topic, it makes sense to consider further Configuration opportunities, like adapting the permission model or creating further aggregated fields. Reach out to email@example.com to learn more.
Run costs are typically managed at the relation between Application and IT Component. They typically comprise costs for services (data center operations, application development, demand management, ...), software (licenses, rent, support, ...) or even hardware (server, workspaces, ...).
Considering employees managing the IT portfolio as an internal service often enables a more comprehensive plan, build, run view.
Remember that there is a trade-off between accuracy and effort to maintain the data. Often it is sufficient to aggregate cost per application, e.g. to only maintain costs for a single service, to create meaningful insights.
You start to maintain run costs at the Application Fact Sheet.
Enter Total annual cost as an attribute of the Application - IT Component relation
View costs for software, hardware and services directly at the Application Fact Sheet.
At the IT Component Fact Sheet, you can take the opposite view and manage how costs for a particular software, hardware or service are distributed.
See the Total annual cost as an attribute of the IT Component - Application relation
The Application Landscape report allows creating a heat map of the cost distribution in relation to Business Capabilities, Processes or User Groups.
Set the view to "IT Component: Total Annual Cost"
The report shows the range of costs color-coded, and allows a quick analysis of the hot spots.
The Business Capability Cost report allows to sum up the run costs by Business Capability.
The run costs are aggregated by Business Capability
In order for the Business Capability Cost report to work, you need to set the attribute "Support Type" on the Application - Business Capability relation to "Leading". This way, LeanIX makes sure that run costs are only counted for one Business Capability
The Provider Cost report allows to sum up the run costs by Provider.
The run costs are aggregated by Provider
Run costs are often imported from a cost management system like Apptio or SAP FI. https://dev.leanix.net/v4.0/docs/graphql-example-application-costs gives a nice example how to import costs via the LeanIX GraphQL API.
Change costs are managed via the Project Fact Sheet. You can include both Budget (OpEx and CapEx) and Ordered Values. The latter are captured as properties of the relation Project - Provider in order to relate the Order to a concrete delivery.
OpEx and CapEx
OpEx = Operational Expenses
CapEx = Capital Expenses
Include your internal IT organisation as a provider to manage the internally ordered costs.
Managed Budget OpEx and CapEx as attributes of the Project Fact Sheet
Managed Ordered OpEx and CapEx as attributes of the Provider relation
Manage the status of the project to relate progress to Ordered Budget in the Project Cost Tracking Report
The Project Cost Tracking report allows you to have all project costs and status for a certain filter (e.g. project category, affected applications) at a single glance
In case the report is not active in your workspace, reach out to firstname.lastname@example.org
Get an overview of Budget and Orders for the filtered Projects.
Get a list of all filtered Projects.
Choose the columns you would like to see. You can also further attributes like NPV or project progress.
Relate the numbers to the state of the project for your selected year.
Tracking Cost development over time is a perfect use case for LeanIX Metrics as well: