FAQData Model & Cost Transparency

    Data Model & Cost Transparency

    Understanding data structures and cost visibility

    What does "cost transparency" require technically?

    Stable taxonomy (TBM cost pools/IT towers, service catalog). Granular usage/consumption (tags/labels, meters, allocations). Cost model (allocation rules: drivers, % splits, fixed/variable). Traceability back to GL, invoices, contracts, and utilization. ServiceNow and TBM resources outline cost models and cost-flow constructs, and Proven Optics packages TBM cost modeling natively on ServiceNow for public/enterprise sectors.

    What are good first‑principles for a defensible allocation model?

    1. Start direct → indirect; 2) prefer consumption‑based drivers where feasible; 3) lock versioned rules; 4) publish reconciliation paths (report → allocation → GL); 5) align app/service hierarchy to CSDM and business capabilities.