From Ledger to Service: Building IT Cost Transparency through Service-Based Costing
Higher education IT organizations face growing pressure to explain their costs, demonstrate value, and support data-informed decision-making. Traditional financial accounting structures, however, rarely align with how IT services are delivered or consumed. This poster presents Penn State IT’s effort to build a scalable, repeatable IT Cost of Services (IT COS) model grounded in the Technology Business Management (TBM) framework. By translating general ledger data into defined service offerings and allocating direct and indirect costs through transparent business rules, the team has created a foundation for more meaningful discussions about cost, consumption, performance, and value. The session describes the collaborative operating model that brings together Financial Operations, the Service Management Office, and Service Offering Owners. It also highlights practical approaches for mapping expenses to services, along with early insights, challenges, and lessons learned. Attendees will leave with actionable strategies for advancing cost transparency in IT, even when data and tools are still evolving.
Presenters
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Jerry Krawczyk
Director, Analysis and Planning,
The Pennsylvania State University
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Jeff Minelli
Business Architect,
The Pennsylvania State University