TCO Reporting System for IT Asset Cost Allocation
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Solution Overview
Problem
Current cost allocation systems are inefficient, failing to facilitate communication between finance and technology teams, are labor-intensive, prone to human error, and unable to process disparate data sources, leading to inaccurate and incomplete Total Cost of Ownership (TCO) calculations.
Innovation Solution
A Total Cost of Ownership reporting system that automates data extraction, processing, and visualization using a flexible processing system with four key modules: Extract, Transform and Load (ETL) Engine, Data Quality Engine, Charge Processing Engine, and Analytics, Reporting, and Data Visualization Engine, to accurately determine and allocate weighted charges across various IT and business assets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If manual data collection and processing is used, then the system is simple to implement, but the process is labor-intensive and time-consuming
Solution Approach 1:
The patent replaces manual mechanical data collection and processing with an automated computer-based system that interfaces with multiple data sources, extracts data, performs transformations, and generates TCO reports automatically, eliminating labor-intensive manual operations while maintaining ease of implementation through standardized software processes
Solution Approach 2:
The system enables self-service by automatically performing data extraction, validation, transformation, and report generation without requiring manual intervention at each step, allowing the TCO calculation process to execute autonomously while remaining accessible through a user-friendly interface
2Ease of operation
If manual data entry is used, then the system is easier to operate, but human error and inaccuracies increase
Solution Approach 1:
The patent replaces manual data entry with automated electronic data extraction and processing systems that retrieve data directly from source systems, validate data quality, and process information through standardized algorithms, eliminating human error while maintaining operational simplicity through automated workflows
Solution Approach 2:
The system incorporates data validation and quality check mechanisms that provide feedback on data accuracy and completeness, automatically identifying and correcting errors or flagging issues for review, thereby ensuring high data accuracy while maintaining ease of operation through automated error handling
3Device complexity
If current cost allocation systems are used, then the process is straightforward, but communication between finance and technology teams is hindered
Solution Approach 1:
The patent introduces an intermediary TCO calculation system that bridges finance and technology teams by translating technical asset data into financial cost metrics and vice versa, enabling effective communication and understanding between the two groups while maintaining a straightforward automated process
Solution Approach 2:
The system serves multiple functions simultaneously: it collects technical data from IT systems, processes financial cost information, performs TCO calculations, and generates reports usable by both finance and technology teams, thereby eliminating communication barriers while maintaining process simplicity through a unified multi-functional platform
4Productivity
If data is processed quarterly, then the processing load is reduced, but the timeliness of TCO information is insufficient
Solution Approach 1:
The patent implements periodic automated processing cycles that can execute TCO calculations at flexible intervals (monthly, quarterly, or continuously), allowing the system to handle processing loads efficiently while providing timely updates based on organizational needs, thereby resolving the conflict between processing capacity and information timeliness
5Device complexity
If disparate data sources are not processed, then the system is simpler to maintain, but incomplete asset and application details are available
Solution Approach 1:
The patent creates a universal data processing system capable of handling multiple disparate data sources through standardized extraction and transformation processes, integrating technical and financial data from various systems while maintaining manageable complexity through unified processing logic and common data standards
Data Source
AI summary
Embodiments of the present invention are directed to a total cost of ownership method and system for technology components, applications or business units. The system provides financial reporting costs in information technology terms in order to build a bridge between technology and finance organizations. The method and system utilize data from systems of record for assets and charges, extract this data and deliver output reports and visualizations on the data processing and analysis in order to drive a Total Cost of Ownership for technology components, applications or business units. The method includes bringing data from disparate sources into the computer processor accessing at least one storage medium, validating the data by a Data Quality Engine, processing the data by matching the at least one charge to the at least one asset and performing data analytics and reporting on the Total Cost of Ownership.