Service Catalog Model
There is no definition of a Service Catalog, so it was necessary to develop a model that can be used
to define the entries that would be included within one. The model has three types of entries: Retail,
Meter, and Lease. The Retail method is used for those commodity type services that are available in
a competitive environment. Examples of these type of services would include provisioning a desk top
system, handling a “help” call, etc.
The Meter and Lease methods pertain to a shared resource environment and is the focus of RG
Solutions® processing. These methods generally deal with business processes that are unique and
strategic to the business, and generally include multiple business units, product services, multiple
systems, and system sharing.
Costing
One of the biggest issues with the Costing of shared IT resources is the ability to measure resources
that are not identical in nature (different platforms or processing power). By using a combination of
System Normalization, Metering, and Activity Based Costing, RG Solutions® delivers accurate and
consistent measures of usage which results in the fair and consistent application of cost for the usage.
Normalization is the process that determines the power rating of a particular system based on a
fixed standard. Metering is the application of system power over time. Using both of these techniques
along with ABC and other methods provides for the consistent delivery of cost metrics that link IT
services to the business.
Cost Metrics
Without consistent measurements, it is not possible to provide cost metrics that are of any value to
the business. Normalization and Metering allow for the translation of IT processing into reliable
business oriented cost metrics. This information can be provided on an informal basis, or more
formally as a Bill of IT.
RG Solutions® provides two forms of Cost Metrics: Business Unit Cost and Manifest Cost. The
Business Unit Cost is the costs associated with a particular unit, group, or organization. This is the
information that is mostly associated with budget type reports. In addition, it provides Manifest Cost
information that is related to a particular type of activity. This could be the cost of a simple item (i.e.
enquiry, ATM transaction, etc.) or a complex activity that includes human capital (i.e. claim, policy,
etc.).
Chargeback / Showback
Traditional Chargeback / Showback systems are inherently unfair and inconsistent due to their
reliance on the Tax Code for recovery funding. Because of a reliance on only annual costs (both
expense and depreciation), these pricing models are complex, inconsistent, and requires over/under
adjustments to compensate for the shortcomings.
RG Solutions® is based on TCO and Life Cycle Usage calculations resulting in fair and consistent
usage pricing. Coupled with system Normalization and Metering, the Chargeback / Showback
information provides a consistent and predictable attribution of shared resource cost without the need
for a periodic reconciliation process
