Quantify business value
Quantifying business value is crucial for organizations to justify their investment in cloud technologies and demonstrate the return on investment (ROI). It enables organizations to understand the impact of their cloud initiatives on business outcomes and make informed decisions about resource allocation and optimization. Planning & estimating, forecasting, budgeting, benchmarking, and unit economics are essential capabilities that support organizations to quantifying business value.
Forecasting
Objective:
Applying statistical methods and forecasting techniques using historical data, current spend patterns, planned changes and related financial metrics to forecast future cloud costs, plan budgets and allocate resources efficiently.
Get started with forecasting:
Budgeting
Objective:
Strategic and ongoing process for setting, monitoring, and managing financial plans to manage cloud spending effectively, align it with business objectives, and ensure financial accountability throughout the cloud services lifecycle.
Get started with budgeting:
Unit economics
Objective:
Develop and track unit economic metrics that reveal a quantitative understanding of how an organization's cloud management practices impact specific business activities, customer segments, or products, to drive efficiency and maximize cloud value.
Planning & estimating
Objective:
Anticipating fluctuations in cloud spending and demand for resources by using historical data and current spending to estimate future costs and plan investments in an organization's cloud environment.
Benchmarking
Objective:
Use efficiency metrics to evaluate an organization's cloud performance and financial management against other departments in the business or industry peers to inform decision-making and align FinOps with business objectives.
Content attribution for this unit: FinOps Domain "Quantify Business Value" by FinOps Foundation.