From Cost to Value: Financial Modelling for ITIL Services

In this episode of The ITSM Practice Podcast, Luigi Ferri dives into Financial Modelling for ITIL-based services — the key to shifting IT from a cost center to a value creator. Learn how Activity-Based Costing (ABC), Unit Costing, Lifecycle Costing, and Showback Models can transform IT governance, pricing clarity, and business alignment in IT Service Management (ITSM).In this episode, we answer to:How can IT leaders connect services, costs, and value in ITIL-based organizations?Which financial models (ABC, Unit Cost, Lifecycle) fit your ITSM strategy best?How can financial transparency turn IT from “too expensive” to a strategic partner?Resources Mentioned in this Episode:PeopleCert website, article "ITIL 4 Value Streams Doing Right Things for Customers", link https://www.axelos.com/resource-hub/blog/itil-4-value-streams-doing-right-things-for-customers QRP website, article "ITIL 4 Service Value Chain and Value Stream", link https://www.qrpinternational.be/blog/it-governance-and-service-management/service-value-chain-and-value-stream/ IT Process Map website, article "Financial Management", link https://wiki.en.it-processmaps.com/index.php/Financial_Management PMI website, article "Activity Based Costing (ABC)", link https://www.projectmanagement.com/wikis/232994/activity-based-costing--abc- Connect with me on:LinkedIn: https://www.linkedin.com/in/theitsmpractice/Website: http://www.theitsmpractice.comAnd if you want more tips and guidance, follow me on LinkedIn. I am sharing daily posts regarding Enterprise Service Management, IT Service Management, and IT Security.Credits:Sound engineering by Alan Southgate - http://alsouthgate.co.uk/Graphics by Yulia Kolodyazhnaya