Executive Summary (This is a document excerpt)

Effective IT demand management requires the ability to influence the behavior that is driving the demand. Without a mechanism to alter the demand for IT resources, the best outcome available is improved management over the supply of those resources. IT chargeback remains the best tool for influencing end user behavior, but only if it delivers enough information about the actual cost of IT services that are consumed and enables end user management to link its IT consumption to value. Chargeback approaches that allocate IT costs based on some general algorithm such as revenues or headcount will remain controversial at best and dysfunctional at worst. IT chargeback must evolve from a cost recovery tool to a consumption-based decision support tool that increases IT transparency.

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