Technological Infrastructure Consumption Index for Granular Cost Management
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Solution Overview
Problem
Business entities face challenges in reducing technological infrastructure costs due to a lack of granular data on consumption and rate fluctuations, leading to ineffective cost management strategies that fail to distinguish between volume of infrastructure consumed and the internal rate charged.
Innovation Solution
A technological infrastructure consumption index is generated on a continuous basis, tracking key consumption elements identified through statistical analysis, providing drill-down capabilities to manage and monitor consumption data across the enterprise, and distinguishing between volume of consumption and rate.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If business entities mandate cost reduction goals without granular consumption data, then cost reduction targets are set, but the ability to assess and manage consumption effectively is lost
Solution Approach 1:
The patent segments consumption data into multiple dimensions including business units, applications, infrastructure components, and time periods. This segmentation enables granular measurement of consumption at different levels of the organization, allowing precise tracking while maintaining comprehensive data availability through structured organization of consumption metrics across all segments.
Solution Approach 2:
The patent introduces consumption metrics and indicators as intermediary elements that bridge the gap between raw consumption data and actionable business insights. These intermediaries (metrics, KPIs, and indicators) transform complex consumption data into manageable information that can be assessed and managed effectively, preventing information loss while enabling precise measurement.
2Ease of operation
If traditional dollar/percent goal management is used for consumption, then cost reduction targets are simplified, but the distinction between consumption volume and rate is lost
Solution Approach 1:
The patent segments cost management into two distinct components: consumption volume metrics and rate metrics. This segmentation allows organizations to separately track and analyze consumption volume (what is consumed) versus rate (how much is charged per unit), preventing the conflation of these two different aspects while maintaining ease of operation through dedicated metrics for each component.
Solution Approach 2:
The patent changes the parameters used for cost management from traditional single-dimensional dollar/percent goals to multi-dimensional parameters including consumption volume, rate, and their interactions. This parameter transformation enables simultaneous tracking of both consumption and rate while maintaining operational simplicity through standardized metric definitions and calculation methodologies.
3Measurement precision
If consumption data is not consistently available with necessary granularity, then cost assessment is simplified, but the ability to identify key consumption elements is lost
Solution Approach 1:
The patent segments the data collection system into standardized components that capture consumption data at granular levels across multiple dimensions. This segmentation enables precise measurement while managing complexity through consistent data structures and collection protocols applied uniformly across all segments, making the complex system manageable and scalable.
Solution Approach 2:
The patent standardizes consumption data collection around key parameters and metrics that capture essential consumption characteristics. By defining standard parameters (such as consumption volume, time periods, business units, and infrastructure components), the system achieves high measurement precision while controlling complexity through parameter standardization rather than custom data collection for each case.
Data Source
AI summary
Embodiments of the invention relate to systems, methods, and computer program products that provide for a technological infrastructure consumption index. The index is instrumental in measuring and managing technological infrastructure consumption. The consumption index is generated on a predetermined schedule as indicator of a business entity's volume of infrastructure consumption. The consumption index tracks key consumption elements, which are within the control of application teams, thereby insuring that the consumption of the key elements are being managed on an ongoing basis. Additionally, the consumption index provides for drill-down capabilities for the purpose of readily accessing data associated with specific key consumption elements of interest and specific teams/organizations within the business entity.