Financial Management Function

The Financial Management function manages the financial aspects of the Digital Product lifecycle, including:

  • Funding of Digital Products (and related Scope Agreements) and managing budgets

  • Cost accounting for Digital Products (and all associated activities)

  • Maintaining Cost Models and calculating product costs (e.g., defined Cost Models, calculate costs based upon actual consumption)

  • Define pricing models for Digital Products

  • Provide billing (or cost allocation) to consumers

The Financial Management function is part of/integrated with the enterprise-wide Financial Management function. This functionality supports the planning and tracking of the costs of managing the Digital Products throughout the entire lifecycle. The IT4IT Reference Architecture defines the flow of information for Digital Product delivery and offers end-to-end traceability for the Financial Management of Digital Products.

The Financial Management function intersects with many functional components, including:

  • Proposal functional component: for allocated and monitoring budgets related to Scope Agreements

  • Product Portfolio functional component: for managing the lifecycle costs associated with the delivery of Digital Products

  • Monitoring and Usage functional components: to collect consumption and usage data

  • Chargeback functional component, to provide chargeback/showback of services consumed by customers