Benchmarking TCO
Benchmarking TCO
Benchmarking TCO
Benchmarking TCO Addressing the big question Has IT made UK Housing Associations more efficient? The new world – no or little grant Dutch Corporations have evolved since ‘grossing up’ Can we learn from their experience?
Benchmarking TCO IT Cost per employee £s
Properties per employee
12,000
70
10,000
60
8,000 6,000 4,000 2,000 0
50 40 30 20 10 0
Benchmarking TCO
11 Years of ICT Benchmarking in Holland Towards an International housing TCO Benchmark?
Henk Korevaar
Topics between now and a coffee… • Who am I? • Who are you? • What do we have in common? – Housing – ICT / IT – ..and a shared interest in €€€ and £££…
Henk Korevaar • Founder of F-fectis Innovation (1991) • Co-founder Dutch Peer-2-Peer network for IT professionals in housing associations (2000) • Author of books on – – – – – –
Project management Innovation IT trends in housing associations Cost and benefits of IT in housing associations Brainstorming Impact of New WOW (to be publised February 2013)
• Facilitator, moderator
And what about you?
Making use of Best Practices Why NOT? Experiences from the ‘lowlands’ • 2000: initiative for Peer-2-Peer network – Objections: why do we need that? – Reasons: you don’t know what (information) you’re missing…
• 2012: 175 members, 1,9 million homes (out of 2,4 million in The Netherlands) • Website, active member community, member pages • Numerous activities and initiatives – – – –
Changes in the way to communicate with suppliers Immensely improved knowledge of the TCO of their own IT Library of dedicated book titles …
TCO Benchmark • Total Cost of Ownership in IT • 11 consecutive years • Average 50 HA’s participating
ICT Cost
ICT Maturity ICT Functionality
ICT Trend Analysis
Characteristics of TCO/11 • 47 participants • More than 911.000 units • 3 categories of participating organisations:
• ≤ 10.000 units • 10.000 ≤ 20.000 VHE • > 20.000 VHE
(14) (18) (15)
• Topics: ICT-cost, functionality, ICT-maturity • Special Topic: cost and functionality of CORE Systems
Characteristics of TCO/11 • ICT-cost per Unit
• ICT-cost per workplace • ICT-cost per fte • ICT-cost as % annual budget And what happened over the last 11 years?
Characteristics of TCO/11 • ICT-cost per Unit
• ICT-cost per workplace • ICT-cost per fte • ICT-cost as % annual budget
ICT cost per Unit £ 96,86
wTCO4 > wTCO11: 23,9% increase wTCO10> wTCO11: 1,2 % increase
ICT cost per workplace £ 6.123 wTCO4 > wTCO11: 13,5% decrease wTCO10> wTCO11: 2,6 % increase
ICT cost per FTE: £ 8.396
wTCO4 > wTCO11: 12,0% increase wTCO10> wTCO11: 6,1% increase
ICT as % annual budget: 2,05%
wTCO10: 1,96% Increase ICT-cost (13,3%) more than budget (8,35%)
ICT cost per domain
ICT-mgmt Workplace LAN WAN App’s Voice
Maturity • Average precentage of maturity of ICT increased with 3,8% compared to 2010 to 51,4% in 2011 • Functionality Score ranges between 71% 100%, – Average (87,7%) is 4,3% higher compared to 2010.
Maturity
Maturity
Trends • Mobility / Any time-Any place • Use of webservices • Cost saving in the ICT area – Virtualisation – Voice over IP – Green IT
• Additional cost in the ICT area: – Outsourcing – Mobility – Any time – Any place – Use of webservices
: 95% : 90%
Trends (2012-2014)
Trends (2012-2014)
Special Topic Cost and Functionality of Primary Systems
Conclusions • On average 28,7% of all ICT cost is for the Primary Systems • On average 24,6% of the cost of ICF staff is for the Primary Systems • Software cost for Primary Systems: average of 64,8% of total ICT cost
Towards an International Peer-2-Peer network?
Member Benefits Keeping up to date in the area of IT within housing associations Being part of a global / international peer-network Exchange of ideas and best practices Participation in events especially aimed at IT and housing Series of events and meetings aimed at IT and housing professionals Information about other relevant conferences and presentations Exclusive books Global study tours Member information and documentation on a members only website Annual IT/Housing - Total Cost of Ownership survey Access to suppliers database/knowledge base
NetwIT Connecting People Sharing Knowledge
Where it all started (in 2000)
• More than 175 members
• About 150 organisations
• 1,9 million of a total of 2,4 million social houses represented by members
• Professional members • Sharing knowledge, experience and best practices
What we do • Activities: • Theme sessions • Site visits • ICT Pub • Seminars • Exhibitions • Publications • Study Tours…
Our publications • Seven titles: • 5th Anniversary Publication • Organisation of the ICT department • Business and ICT architecture • Cost and benefits of ICT • Business and ICT alignment • Governance and Control • Impact of New Ways of Working (February 2013)
Website www.netwit.nl • • • • •
General information Extranet for members Member profiles Documentation/Articles List of members
Benchmarking TCO
Benchmarking TCO Addressing the big question Has IT made UK Housing Associations more efficient? The new world – no or little grant Dutch Corporations have evolved since ‘grossing up’ Can we learn from their experience?
Benchmarking TCO IT Cost per employee £s
Properties per employee
12,000
70
10,000
60
8,000 6,000 4,000 2,000 0
50 40 30 20 10 0
Benchmarking TCO
11 Years of ICT Benchmarking in Holland Towards an International housing TCO Benchmark?
Henk Korevaar
Topics between now and a coffee… • Who am I? • Who are you? • What do we have in common? – Housing – ICT / IT – ..and a shared interest in €€€ and £££…
Henk Korevaar • Founder of F-fectis Innovation (1991) • Co-founder Dutch Peer-2-Peer network for IT professionals in housing associations (2000) • Author of books on – – – – – –
Project management Innovation IT trends in housing associations Cost and benefits of IT in housing associations Brainstorming Impact of New WOW (to be publised February 2013)
• Facilitator, moderator
And what about you?
Making use of Best Practices Why NOT? Experiences from the ‘lowlands’ • 2000: initiative for Peer-2-Peer network – Objections: why do we need that? – Reasons: you don’t know what (information) you’re missing…
• 2012: 175 members, 1,9 million homes (out of 2,4 million in The Netherlands) • Website, active member community, member pages • Numerous activities and initiatives – – – –
Changes in the way to communicate with suppliers Immensely improved knowledge of the TCO of their own IT Library of dedicated book titles …
TCO Benchmark • Total Cost of Ownership in IT • 11 consecutive years • Average 50 HA’s participating
ICT Cost
ICT Maturity ICT Functionality
ICT Trend Analysis
Characteristics of TCO/11 • 47 participants • More than 911.000 units • 3 categories of participating organisations:
• ≤ 10.000 units • 10.000 ≤ 20.000 VHE • > 20.000 VHE
(14) (18) (15)
• Topics: ICT-cost, functionality, ICT-maturity • Special Topic: cost and functionality of CORE Systems
Characteristics of TCO/11 • ICT-cost per Unit
• ICT-cost per workplace • ICT-cost per fte • ICT-cost as % annual budget And what happened over the last 11 years?
Characteristics of TCO/11 • ICT-cost per Unit
• ICT-cost per workplace • ICT-cost per fte • ICT-cost as % annual budget
ICT cost per Unit £ 96,86
wTCO4 > wTCO11: 23,9% increase wTCO10> wTCO11: 1,2 % increase
ICT cost per workplace £ 6.123 wTCO4 > wTCO11: 13,5% decrease wTCO10> wTCO11: 2,6 % increase
ICT cost per FTE: £ 8.396
wTCO4 > wTCO11: 12,0% increase wTCO10> wTCO11: 6,1% increase
ICT as % annual budget: 2,05%
wTCO10: 1,96% Increase ICT-cost (13,3%) more than budget (8,35%)
ICT cost per domain
ICT-mgmt Workplace LAN WAN App’s Voice
Maturity • Average precentage of maturity of ICT increased with 3,8% compared to 2010 to 51,4% in 2011 • Functionality Score ranges between 71% 100%, – Average (87,7%) is 4,3% higher compared to 2010.
Maturity
Maturity
Trends • Mobility / Any time-Any place • Use of webservices • Cost saving in the ICT area – Virtualisation – Voice over IP – Green IT
• Additional cost in the ICT area: – Outsourcing – Mobility – Any time – Any place – Use of webservices
: 95% : 90%
Trends (2012-2014)
Trends (2012-2014)
Special Topic Cost and Functionality of Primary Systems
Conclusions • On average 28,7% of all ICT cost is for the Primary Systems • On average 24,6% of the cost of ICF staff is for the Primary Systems • Software cost for Primary Systems: average of 64,8% of total ICT cost
Towards an International Peer-2-Peer network?
Member Benefits Keeping up to date in the area of IT within housing associations Being part of a global / international peer-network Exchange of ideas and best practices Participation in events especially aimed at IT and housing Series of events and meetings aimed at IT and housing professionals Information about other relevant conferences and presentations Exclusive books Global study tours Member information and documentation on a members only website Annual IT/Housing - Total Cost of Ownership survey Access to suppliers database/knowledge base
NetwIT Connecting People Sharing Knowledge
Where it all started (in 2000)
• More than 175 members
• About 150 organisations
• 1,9 million of a total of 2,4 million social houses represented by members
• Professional members • Sharing knowledge, experience and best practices
What we do • Activities: • Theme sessions • Site visits • ICT Pub • Seminars • Exhibitions • Publications • Study Tours…
Our publications • Seven titles: • 5th Anniversary Publication • Organisation of the ICT department • Business and ICT architecture • Cost and benefits of ICT • Business and ICT alignment • Governance and Control • Impact of New Ways of Working (February 2013)
Website www.netwit.nl • • • • •
General information Extranet for members Member profiles Documentation/Articles List of members
