An ABC-Based Approach for Operational Business-ICT Alignment

This paper focuses on Business-ICT Alignment at the operations level by means of an Activity-Based Costing approach. The Service and Technology Operations are defined as cost drivers for the Business and Service Activities by using analytical production functions (so-called profiles). It is explained how Service Level Agreements are the boundary conditions for determining these profiles. Managing the profiles ensures operational Business-ICT Alignment, especially for Capacity Planning and Cost Management and comparative Total Cost of Ownership evaluation purposes. Two Case Studies illustrate the methodology.