Cost Modeling Functional Component
The main purpose of the Cost Modeling functional component is to associate cost elements (internal or external) with the resources that bear these costs (hardware, software, or people). The Cost Model serves as the cost reference to feed the Chargeback functional component with elementary costs (costs per unit of work). The Chargeback functional component will multiply these elementary costs by a Usage factor to compute the cost of a service.
The model should also be used to evaluate the total cost of IT and how they are spread over all resources. A simulation, or scenario-based rendering, may also be supported by the Cost Model.
The Cost Modeling functional component supports the value streams:
The Cost Modeling functional component:
Shall be the reference for cost allocations on the corresponding resource
May be structured by categories of resource (type of resources, typically grouped by tower, sub-tower, etc.)
May include a simulation capability to evaluate the distribution of all IT costs