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Technology Business Management with Apptio ® & SAP ® An Accelerated Approach to Managing & Optimizing the Business Value of IT Executive Summary IT executives are seeking ways to drive greater transparency and insight into their IT resources and services while managing IT with commercial acumen. Many of their business peers rely on SAP ® technology to manage corporate functions. However, unlike manufacturing, sales, or procurement, the SAP suite does not provide a best-in-class solution for managing the cost, consumption, and value of the technologies and services that IT departments deliver. In response, hundreds of IT, finance, and line-of-business leaders – whose businesses depend on SAP – are taking a faster, more valuable approach with Technology Business Management (TBM). By pairing Apptio’s suite of TBM SaaS applications with SAP, enterprises can comprehensively manage the business of IT. “We manage all our costs, based on services, across our corporate value chain. Apptio helps us host the central service catalogue, maintain provider-consumer relationships, and calculate service TCO (Total Cost of Ownership) and charges. It delivers service transparency as a cornerstone of our productivity and demand-supply discussions while keeping complexity out of our core finance systems.” Matthias Grass, CFO Operations, Swiss Re

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Technology Business Management with Apptio® & SAP®

An Accelerated Approach to Managing & Optimizing the Business Value of IT

Executive SummaryIT executives are seeking ways to drive greater transparency and insight

into their IT resources and services while managing IT with commercial

acumen. Many of their business peers rely on SAP® technology to

manage corporate functions. However, unlike manufacturing, sales, or

procurement, the SAP suite does not provide a best-in-class solution

for managing the cost, consumption, and value of the technologies and

services that IT departments deliver.

In response, hundreds of IT, finance, and line-of-business leaders –

whose businesses depend on SAP – are taking a faster, more valuable

approach with Technology Business Management (TBM). By pairing

Apptio’s suite of TBM SaaS applications with SAP, enterprises can

comprehensively manage the business of IT.

“We manage all our costs, based on services, across our corporate value chain. Apptio helps us host the central service catalogue, maintain provider-consumer relationships, and calculate service TCO (Total Cost of Ownership) and charges. It delivers service transparency as a cornerstone of our productivity and demand-supply discussions while keeping complexity out of our core finance systems.”

Matthias Grass, CFO Operations, Swiss Re

2 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Today, many IT and finance organizations engage in “spreadsheet gymnastics” in an attempt to address their need to

better understand IT costs and value. However, these are error-prone, laborious, and brittle. Spreadsheets offer limited

scalability and agility as financial and operational data sources (and inquiries) grow and change, or as organizational

models and allocation strategies evolve and mature. Current methods are not automated and rarely provide actionable

operational insight.

To address this, Apptio offers purpose-built SaaS applications that automate IT cost analytics. When undertaking

initiatives like IT as a Service (ITaaS), cost reduction, demonstrable controls, portfolio investment management, or multi-

vendor performance, Apptio provides transparency to a broad group of stakeholders with diverse agendas. Apptio also

uses an industry standard cost model to foster business acceptance and understanding. As a result, Apptio is the perfect

companion to SAP for managing the business of IT.

TBM: The New Standard for Managing the Business of ITIn recent years, modern CIOs and CFOs have been partnering to tackle a strategic issue: how can businesses get more

value out of their technology dollars to improve their businesses? The answer for more than 40% of the Fortune 100 is

TBM, a data-driven approach for measuring, managing, and communicating the cost and value of IT. TBM was pioneered

by Apptio in partnership with the TBM Council, a non-profit organization of senior global technology executives focused

on defining TBM standards and best practices.

Today, more than half of Apptio’s enterprise customers use its purpose-built suite of TBM applications in combination

with SAP, proving that the best approach marries core financial data from enterprise financials with data from IT about its

assets, applications, people, vendors, and more. The resulting facts, provided through powerful analytics and actionable

transparency, empowers IT, finance, and business leaders to collaborate on the tough decisions that improve value.

How does TBM work? TBM empowers IT leaders to communicate the value of IT to the business and pro-actively shift

spend toward high-value services and innovation. TBM provides transparency into costs, utilization, and performance

of services across the entire IT value chain. As a result, IT leaders can establish accountability, cost ownership, and

apply economic rationales to daily decisions. Business leaders can influence their technology spend by adjusting IT

consumption behavior. TBM also helps answer multi-faceted questions, such as:

• Are we spending too much, or just enough, on IT “run” vs. “change?”

• Which applications can we rationalize because they are underused or misaligned to strategy?

• How much budget could be freed by reducing SLAs on non-critical applications?

• What is the cost-saving potential of outsourcing on-premise infrastructure to a third-party cloud provider?

• Are we efficient in delivering storage-as-a-service compared to industry peers?

The key to answering these questions lies in integrating IT operational and financial data from multiple, usually

independent sources, and turning them into actionable data. Many organizations start simply, with just a few data sources

and add additional data sources as they mature. The following are common data sources used by Apptio’s TBM SaaS

applications:

• Financials (e.g., SAP): budgets/actual costs per legal entity, cost center, and account

• Service catalogue: business and technology services

• HR: IT workforce, time recording, FTE, and headcounts

• CMDB: mapping of infrastructure to applications

• PPM: project data including capacity plans, external, and internal spend

• Service desk: ticket requests and resolution times

• Monitoring: up/ down times, consumption of technology services

• Provisioning: delivery of technology and access rights

• Vendors: contracts with prices, consumption, and SLA performance

3 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Apptio integrates these data sources using a standardized taxonomy and then applies intelligent cost modelling to

create a comprehensive view of IT costs. This view also takes account of operational and financial dimensions to

ensure that decisions are made in full confidence of value and total cost of ownership (TCO).

SAP Manages Business Processes, Not IT Transparency Many companies have made SAP the strategic solution for managing their core processes and enterprise-wide

financials. A typical SAP architecture looks as follows:

SAP Financial Accounting (SAP FI)

As the general ledger, SAP FI is the source of the financial truth for all legal entities, profit centers, and cost

centers. This truth is created bottom-up from actual bookings, with support from more detailed sub-ledgers.

Its main purpose lies in financial accounting as the basis for financial (external) reporting. In the case of IT, SAP

supports cost recovery based on accounting entries.

SAP Controlling (SAP CO)

SAP CO is the source for internal management accounting and supports decision making by providing relevant

information to steer corporate functions. It is often used in combination with CO-OM (Overhead Management)

to allocate overhead costs to profit generating units or CO-PA (Profitability Analysis) to calculate profitability

of segments, markets, or products. Other sub-ledger modules specific to processes like production, sales, or

procurement usually feed data into SAP CO as part of the monthly closing process. This data provides adequate

granularity for running a corporate function while keeping the complexity out of SAP CO.

SAP Business Warehouse (SAP BW) & SAP® BusinessObjects™ (SAP BO)

SAP Business Warehouse (SAP BW) is the data warehouse that pulls transactional data from a variety of

modules, such as SAP FI or SAP CO, after closing of a financial period. SAP BW holds and models all the data

that is provided to users for financial analysis and reporting. The Business Objects suite adds state-of-the-art

functionalities to navigate through and analyze the data modelled and stored in SAP BW.

The interplay of process and data between these SAP modules makes it a perfect choice to provide external reporting

compliant to regulatory requirements. It also creates consistent views and visibility into enterprise performance in

many dimensions.

Finance Warehouse

SAP BW/BO

No Business Management System for IT

Cost Reporting

General Ledger

SAP CO

Cost Accounting

COMPANY

ITHR FR ...

SAP FICOMPANY COMPANY COMPANY

Americas Business

IT HRSales...

EMEA Business

APAC Business

Cost Gathering

Sub-Ledgers

Manufacturing: MM

Sales: CRM & SD

Procurement : SRM

HR: HCM

...

IT: ???

4 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

From an IT perspective, SAP FI provides a financial view of the IT cost base. SAP CO processes the chargeback of

those IT costs to the business. However, there are two major challenges with this SAP combination for IT: (1) a pure

financial view based on accounting for recovery purposes is inadequate to manage the business of IT using TBM; and

(2) neither SAP FI nor SAP CO usually hold enough detailed information to calculate showback or chargebacks based

on consumption (or consumption factors). The main reasons why SAP cannot resolve those challenges are:

SAP is Not an Adequate Sub-Ledger for IT

Unlike for other corporate functions, there is no sub-ledger that holds the details required to manage the

business of IT based on cost, utilization, and consumption of resources, applications, or services. In fact, pure

financial views miss these important operational dimensions needed for high decision quality.

SAP Does Not “Speak” IT Services or Application TCO

SAP is built on corporate master data like cost centers and accounts. The IT service catalogue is rarely

part of this master data. In fact, there is no actionable service object aimed to calculate TCO, utilization, or

performance. Further, in a standard setup, SAP does not interface with IT operations systems to provide this

information.

SAP Leaves a Granularity Gap

TBM decision-making requires drill-downs along the value chain of IT - from services and applications down to

infrastructure, network, and data centers – possibly for hundreds of objects. This IT granularity is not included

in any of the SAP modules.

Many IT executives have developed their own solutions to add detailed IT views complementary to SAP. We often

encounter heavily programmed spreadsheets or self-developed databases specifically made for IT service costing.

These tactical “shadow” sub-ledgers bundle the complexity outside of SAP and create meaningful IT chargebacks that

can feed into SAP CO or SAP FI. However, they almost always fail to create the desired transparency and only a few

experts understand them in detail. Also, due to their one-off and

highly manual nature, they lack the efficiency, reliability, and

security required in enterprise environments.

Earning the trust of business peers is also very challenging. For

the business, IT remains a black box where decisions seem to be

made on beliefs and gut-feeling rather than on reliable, fact-

based information. They struggle to understand their IT charges,

as they are opaque and disconnected from consumption. In such

a setup, CIOs struggle to demonstrate the business value they

deliver and are instead defending their budget.

In other words, CIOs who run their business solely based on

standard financial views face the risk of making wrong decisions

on IT services and projects. They might optimize costs, but

compromise on IT operational aspects and business value.

“TBM helps us analyze our opportunities quickly so we can make the best and most informed decisions on which activities that we should pursue to delight our customer(s). It takes what we do every day and puts a different lens on IT. If we all understand what is going into a project, a program, or an activity whether it ’s a dollar, resources, people, time, schedule, we can look at that and share this information and have really good and positive discussions.” Chris BeaudinSenior Director, IT Business Management & FinanceDIRECTV

5 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Other Transparency Approaches Fall ShortOthers attempt to leverage SAP technology to create IT transparency by using more exotic tools like SAP Profitability

and Cost Management (SAP PCM) or by extensively customizing their core finance system (SAP CO).

SAP PCM is an analytical tool that specializes in activity-based costing (ABC) for processes and profitability

simulations for products. It is not integrated with standard SAP, but supports basic functionalities, such as ABC.

Moreover, SAP PCM comes as an “empty box” with no content specific to IT. It is very challenging and time-consuming

to create reports and analytics to support the needs of IT tower owners, portfolio managers, applications and service

owners, business relationship managers, and other IT and business stakeholders. Building this type of content from

scratch can take months or years of costly experts who are better suited to focus on more pressing business problems.

Similarly, modeling an IT service view into the SAP CO cost center structure is a risky path to take. While it may appear

to improve stability and stays within a corporate SAP standard, this approach comes at a price: it significantly reduces

flexibility of the IT service model by closely linking it to finance master data. This tremendously restricts the way TBM

decision-makers can look at services because their views are limited to financials and omit detailed operational facts.

Likewise, making the SAP CO cost center structure adaptable to the ever-changing IT service and application model

is impractical. Doing so potentially jeopardizes inter-period comparisons for financial reporting and financial auditing.

More importantly, cost centers are often used to assign accountability for budgeted amounts and are structured to

match the organizational model over the service model. The organizational model is generally more stable than the

service catalogue, and it’s important to preserve the accountability provided by the existing system.

Finally, both of these approaches have one common denominator: they bind valuable and skilled resources in manual,

repetitive activities such as data cleansing, consolidation, or maintaining service cost center structures and keys. This

leaves them less time for value-added activities such as analysis and decision making.

SOURCE DATA

APPTIO SaaS PLATFORM

IT BenchmarkingCost Transparency Business Insights Bill of IT IT Planning

APPTIO SaaS APPLICATIONS

Self-Service Analytics

Adaptive Data Management

Model & Calculation Engine

Apptio TBM Unified Model™ (ATUM™)

Financial Operational Billing

6 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Apptio: The Business Management System for ITApptio is the leading provider of purpose-built SaaS TBM applications. These applications enable IT leaders to draw

insights about their technology costs that fuel collaboration between their business and finance counterparts.

Apptio customers also have access to the Apptio TBM Unified Model™ (ATUM™), the industry standard cost model

for IT. ATUM provides a standard method for categorizing IT functions and calculating their costs as a basis for

understanding TCO.

Apptio is successfully used by a wide range of companies that benefit from fast time-to-value, optimal use of IT spend,

and increased recognition of IT value by internal stakeholders. Almost half of its customers use SAP as their corporate

financial platform: companies such as AmerisourceBergen, Bank of America, The Clorox Company, DIRECTV, HP,

Microsoft, Nike, RWE, Zurich, and Vodafone Group.

Apptio customers model their service TCO and business unit costs using a graphical interface that integrates financial

and IT operational data from virtually any source and format. Apptio’s SaaS platform provides a set of standard

enterprise interfaces to receive data from on-premise or cloud applications. Apptio is even powerful enough to detect

relevant relationships within large amounts of data – without requiring database administrator (DBA) skills – even at

the most detailed level of granularity. Consequently, business-of-IT users can either apply pre-defined or create their

own costing strategies.

Apptio offers five core TBM applications, including:

• Apptio Cost Transparency helps IT leaders make better resource decisions faster by putting actionable, current, and trusted information about IT costs at their fingertips.

• Apptio IT Benchmarking helps IT demonstrate efficiency and identify areas for improvement by extending Apptio Cost Transparency with side-by-side comparisons of monthly actual costs against relevant peer organizations.

• Apptio Business Insights helps IT leaders optimize IT efficiency and effectiveness by providing granular visibility into capacity utilization alongside cost information from Apptio Cost Transparency.

• Apptio Bill of IT enables line-of-business partners to review and influence their IT consumption and costs by automating billing through pro-forma invoices.

• Apptio IT Planning enables IT finance and budget owners to plan more collaboratively by automating and centralizing IT budget, forecast and variance tracking, usually as input for corporate planning.

To learn more about Apptio’s TBM software, visit http://www.apptio.com/applications.

ATUM: The Standard Cost Model for ITThe Apptio TBM Unified Model (ATUM) is a specification that defines the elements of a standard cost model for technology.

With standardized IT cost calculations, leaders can manage the business of IT more effectively. Apptio developed ATUM

based on its experiences with more than 200 customers and its role as Technical Advisor to the TBM Council.

What to Gather

DATA

Source data elements, formats, and relationships needed by Model

How to Organize

TAXONOMY

Standard management categories for IT

How to Measure

MODEL

Standard costing rules to map and apportion GL costs to IT categories

Figure 1: ATUM describes what data to gather for IT cost analytics, how to organize that data into relevant IT categories, and how to measure and route costs through those categories.

7 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Business Units

Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5

Individual Applications by Business Capability End User Services Technology Services

Applications & Services

Line of Business

Strategy & PlanDesign & BuildMarket & SellTake Orders

Deliver ProductService Customer

Management & Support

FinanceHuman Resources

LegalFacilities

Communications

Client Computing

Basic WorkspaceTechnical Workspace

Shared WorkspaceTraveling WorkspaceCopy/Print/Fax/Scan

Connectivity

Network AccessRemote Access

IT Professional Services

Program & Project Mgmt.Business Process Mgmt.Enterprise Architecture

Service DeskDeskside Support

Hosting

Application HostingWeb hosting as a Service

Platform as a ServiceDatabase as a ServiceCompute as a ServiceStorage as a Service

Connectivity as a Service

Applications & Integration

Application Design & Dev.Application SupportQuality Assurance

Communication& Collaboration

ConferencingCollaborative Workspace

MessagingEmail

Phone & Voicemail

IT Towers & Sub-Towers

Data Center

Enterprise Data Center

Other Facilities

Communi-cation

Circuits

Usage

Output

Central Print

Post Processing

Application

App Dev

App Support & Ops

LoB Software

Cloud Apps

Delivery

Ops Center

Project Mgmt.

Client Mgmt.

Cloud Ops

IT Management

IT Mgmt. & Strategic Planning

Enterprise Architecture

IT Finance

IT Vendor Mgmt.

Security & Compliance

Security

Compliance

Disaster Recovery

Cloud DR

Compute

Windows

Linux

Unix

Mainframe

Converged Infrastructure

Cloud Windows

Cloud Linux

Database

Middleware

Mainframe Database

Mainframe Middleware

Cloud Platform

Storage

Tier 1

Tier 2

Tier 3

Tier 4

Cloud Storage

Cloud Archive

Network

LAN

WAN

Voice

Other Network

Cloud Network

End User

Workspace

Mobile Devices

Service Desk

Field Support

Cloud Desktop

Cost Pools & Sub-Pools

Actual & Planned Costs

Internal Labor

Internal Labor

External Labor

External Labor

Hardware

DepreciationLease

ExpenseMaintenance &

Support

Software

DepreciationLease

ExpenseMaintenance &

Support

Outside Services

ConsultingManaged Service Provider

Cloud Service Provider

Facilities & Power

DepreciationLease

ExpenseMaintenance & Support

Telecom

Telecom

Other

Other

ATUM provides Apptio’s customers the following benefits:

• Matches cost categories and metrics around a best-practice approach agreed by an industry body, the TBM Council

• Aligns costing methodology with IT benchmark data to enable easier, more frequent, apples-to-apples peer comparisons

• Enables the delivery of regularly updated, packaged TBM applications instead of bespoke, do-it-yourself models that are difficult to build and maintain

The TBM Taxonomy – a core part of ATUM – is illustrated below. To learn more about ATUM, visit www.Apptio.com/ATUM.

“This is the fundamentals of managing the business of IT. I look at ATUM, the Apptio TBM Unified Model, as the organizing taxonomy. This is how we’re delivering our bill of IT. Now I can see if my services are valuable compared to the market.”Dean NelsonVP, Global Foundation ServiceseBay

8 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Technology Business Management Solutions ComparedThe following table illustrates the key requirements for an enterprise-class business management system for IT and

how Apptio and SAP meet those requirements.

ApptioSAP

FICOSAPBW

SAPPCM

Pla

tfo

rm

Cost allocation engine optimized for IT service TCO(Intelligently apportion pooled costs by activity or consumption)

Data integration optimized for IT finance and operational data(Embraces poor data quality; gracefully handles frequent change)

Self-service analytics to facilitate going “off road”(Answer unanticipated changes without DBAs or report development)

Intuitive data, model, and report customization(Optimized for spreadsheet power users; no need for development skills)

IT D

om

ain

Kn

ow

led

ge

Pre-built data model for IT cost analytics(Structure and guidance to integrate IT finance and operational data)

Pre-built cost model aligned to IT benchmark data(Easy comparison of monthly costs to benchmarks)

Taxonomy of IT functions endorsed by IT peer organization(Standardized terminology for organizing IT costs)

TBM best practices and thought leadership(CIO and IT leader community engagement)

Pac

kage

d A

pp

licat

ion

s to

Su

pp

ort

TB

M M

eth

od

olo

gy

IT service costing(Better, faster decisions through transparency into IT costs)

IT benchmarking(Apples-to-apples comparisons of IT costs to those of peers)

IT Budgeting, forecasting, and variance tracking(Automation and centralization of IT planning processes)

IT showback/chargeback(Automation of pro forma service cost invoicing)

Pre

-Bu

ilt R

epo

rts

for

IT

Pre-built reports for IT tower owners(Cost and utilization for common IT functions)

Pre-built reports for application/service owners(Cost and consumption for individual applications and app portfolio)

Pre-built reports for business relationship managers(IT cost and consumption per business unit)

Pre-built reports for portfolio managers and PMO(Project financials, variance, and strategy alignment)

- Full Support

- Partial Support

“As a next step of our service journey, we will invest in bringing our demand-supply dialogue to the next level of maturity. Therefore, we aim to improve the way we look at our cost base by adding more transparency on operational data such as service utilization and performance. This will help us to identify services and investments that drive additional business value.” Kai Schwandt, Head of Group Service & Project Portfolio, Swiss Re

9 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Using Apptio as The IT Sub-Ledger to SAPApptio helps IT, finance, and business leaders speak in a common language by translating finance data into IT context

and service TCO. For consistency and acceptance, it is important that the cost figures in Apptio are reconciled

with SAP and vice-versa. Apptio makes this easier by integrating data directly from SAP, with no external data

transformations needed between the two systems.

With its DataLink component (see illustration), Apptio provides standard interfaces to receive data from on-premise or

other cloud applications. Apptio consumes cost and fixed asset data from the general ledger as a basis for its service TCO

calculations. The IT cost base is sourced from SAP FI and loaded into Apptio, typically on a monthly basis.

Apptio enriches this cost data with operational data from other IT systems to populate the costing model. The model

calculates service and project TCO as well as a detailed bill of IT per business unit. This bill of IT can be either used for

showback or chargeback of IT costs to the business, be it as inter-company re-charges across legal entities or cost

distribution within the same legal entity. Chargebacks are common in companies that use standard cost accounting in SAP.

To ensure consistency and traceability, business users must be able to reconcile between their bill of IT in Apptio and

the chargeback they receive through SAP. This in turn has an implication on the system architecture: Apptio must be

run as a sub-ledger for IT in front of SAP FI/CO and feed its cost accounting with two kinds of financial transactions:

1. Intercompany Recharges:

Intercompany recharges are invoice-based and booked in SAP FI if IT is provided by one legal entity and

consumed by another. These are typically cross-border value flows that are subject to value-added tax and

transfer price regulations.

2. Distributions:

Cost distributions are processed in SAP CO if IT is provided to other functions within the same legal entity. This

allows companies to control full cost performance of corporate functions and assess profitability of markets,

segments, and products. Meanwhile, all the details are available for review and approval in Apptio’s Bill of IT.

Positioned as a sub-ledger to SAP, Apptio becomes the system-of-record for IT cost and value. It provides IT

chargebacks with meaning because they are calculated on real application or service costs (TCO) and consumption.

Business, finance, and IT now understand how they can influence their chargebacks with consumption. This creates a

mutual understanding between them.

10 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

Apptio with SAP HANA® & Simple Finance (sFIN) HANA is the new cloud platform of SAP. Its in-memory technology significantly improves business analytics. Its new

Simple Finance (sFIN) module integrates FI and CO into a single document for accounting records. SAP HANA users

are able to run their analytics on-demand and in real-time down to the line item level without having to wait until data

is refreshed in BW. Additional functionalities such as planning, text processing, and the possibility to integrate data

from non-SAP sources on the go reduce the rigidity of yesterday’s SAP.

As SAP HANA won’t provide any content specific to TBM, the benefits of running Apptio as a sub-ledger for IT persist.

Apptio provides the system-of-record to calculate detailed application and service TCOs, bill of IT reports, and IT

chargebacks. Apptio works with SAP sFIN the same as it does with SAP FICO. However, data transfer between Apptio

and SAP HANA takes place across two cloud platforms. Apptio is already consuming SAP HANA data from customers

like Cisco, eBay, and Vodafone. Data exchange between cloud services has been a strategic priority for Apptio from

its early days. Close partnerships to leading cloud service providers such as Amazon Web Services (AWS), Microsoft®

Azure, and ServiceNow® have advanced the platform to one of the best in the market.

ConclusionAs an enterprise running on SAP, your business already has a solid foundation for using TBM and Apptio to manage

the cost, consumption, and value of your IT portfolio. Furthermore, you understand the value of using best-in-class

software for running the most important parts of your business. IT is not only mission critical to achieve business

objectives, but it’s also strategically important for today’s enterprises.

More than one-third of the Fortune 100 and hundreds of enterprise customers globally are using Apptio to manage

and optimize the business value of IT with TBM. Many run Apptio as a complement to their SAP systems.

PROFIT GENERATION UNITS

-

APAC

Salaries

PRIM

ARY

COST

S

ACME Brazil

SECO

ND

ARY

COST

S

Travel

.. .

HR Services

IT Services

Finance Services

Marketing Services

NON-PROFIT GENERATION UNITS PROFIT GENERATION UNITS

HR IT

300

650

-1250

200

100

-

-

400

Americas

600

Finance

-

EMEA

250

Marketing

-

APAC

Integration with Apptio

Cost Accounting (SAP FICO)

11 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

1. Maximize the value of IT

With Apptio, you can evaluate cost-quality trade-offs to maximize the business value

of your service and project portfolio.

2. Reduce time-to-value

TBM best practices for service TCO models, IT metrics, and reports allow you to

create early and tangible results.

3. Increase acceptance by your stakeholders

Apptio’s standard TBM Taxonomy (part of ATUM) creates trust among business and

technology stakeholders.

4. Create robust, repeatable results

You can replace error-prone spreadsheets with a reliable enterprise platform that

offers data versioning, security, and audit trails.

5. Leverage your data

Apptio’s adaptive data management is built to work with operational and finance data

from diverse sources with varying data quality.

6. Shift your people’s time to creating more value

Automating TBM with Apptio lets you shift skilled labor from data collecting and

cleansing to TBM analytics and decision making.

7. Make fact-based decisions

A 360º view of service TCO, utilization, and performance combined with “what-if”

analytics enables data-driven decisions.

8. Create true-and-fair IT charges

The bill of IT allows you to calculate IT chargebacks based on consumption and TCO

that the business can easily understand.

9. Compile reliable IT plans

IT cost transparency enables you to develop IT plans, budgets, and forecasts that are

fact-based and aligned with business demand.

10. Make monthly apples-to-apples comparisons to peers

Apptio’s standard TBM Taxonomy aligns with Apptio IT Benchmarking to enable easy,

more frequent comparisons of your costs against those of industry peers to identify

productivity levers or demonstrate your efficiency position.

10 Reasons You Should Use Apptio as a Sub-Ledger for IT

12 | © 2015 Apptio, Inc. and Ellix AG. All rights reserved. http://www.apptio.com

Technology Business Management with Apptio & SAP

About the Authors

This whitepaper is a joint work of Apptio and ELLIX, the first

European consulting company purely focused on Technology

Business Management (TBM). Advising international corporations

across various industries, ELLIX established a unique track-record that dates back to 2009, when they designed and

implemented the first TBM solution in Europe. Since then, ELLIX has successfully applied TBM and accompanied many

clients on their individual TBM journeys. Please visit www.ellix-tbm.com.

Apptio is the leading provider of cloud-based Technology Business

Management (TBM) software that helps CIOs manage the business

of IT. Apptio’s suite of applications uses business analytics to

provide facts and insights about technology cost, value, and quality

so IT leaders can make faster, data-driven decisions. The purpose-

built applications help companies align technology spend to business outcomes and automate IT processes like

cost transparency, benchmarking, showback/chargeback, operational efficiency, and planning. Powering Apptio’s

applications is a next generation, in-memory cost analytics platform. Hundreds of customers, including more than

a third of the Fortune 100, choose Apptio as their business system of record for IT. For more information, visit the

Apptio website or the Apptio blog at www.apptio.com.