Tag Archives: rate & funding model

Road Show 2017

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Activity Based Costing Presentation at NACUBO 2016 Montreal

“Using Activity Based Costing to Identify the Cost to Deliver IT Services” will be presented by the University of Illinois at Chicago and WTC Consulting, Inc. during the NACUBO 2016 Annual Meeting on July 18, 8:30-9:45 a.m. in Concurrent Session IV.

What is the best way to determine the cost of IT, generate forecasts, and benchmark against peers?  These questions drove an activity-based costing project by the University of Illinois at Chicago (UIC) and WTC Consulting, which identified 190 Basic Products and Service Elements (BPSE™) in the university’s central IT department.  The elements formed a transparent picture of IT roles, activities, and costs, creating the basis for a new rate and funding strategy that yielded a bundled common services model.  Hear the project leaders describe cost drivers, methodology, rate philosophies, campus engagement, and implementation challenges.  The panel will also address using results to allocate IT costs, evaluating outsourcing targets, identifying cost-cutting goals, and more.

Learning Objectives:

● Learn different rate and funding philosophies that work in higher education.

● Discover that not all metrics for comparison are created equal.

● Find out which decision-making structure builds buy-in from the start.

For more information on WTC Consulting, Inc. visit us in Booth #918 at NACUBO 2016, or visit our website www.wtc-inc.net and our blog www.wtcconsulting.info

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American Council on Education 98th Annual Meeting

Be sure to visit WTC Consulting, Inc. in Booth #105 during the 98th Annual American Council on Education (ACE) meeting and exposition at the San Francisco Marriot Marquis, March 12-15, 2016.

ACE 2016 is the country’s premier higher education event, bringing together nearly 2,000 higher education leaders to network with one another and hear from College and University presidents discussing the most pressing issues of the day.

ACE is the nation’s most visible and influential higher education association.  ACE represents the presidents of more than 1,700 member accredited, degree-granting institutions, which include two-and -four year colleges, private, and public universities, and nonprofit and for-profit entities.  The organization collectively promotes, protects, and advocates for students, faculty, and administrators in higher education.  ACE members represent almost 70% of all students in accredited, degree-granting institutions.

WTC Consulting, Inc. is a leader in fully integrated activity based consulting, rate and funding models, and rate implementation for information technology.  Since 1983, WTC has helped many ACE members with the facts they need to make informed decisions for IT strategic planning and the annual budget process.  The success of the WTC approach is based on four characteristics:  Structure, Understanding, Simplicity, Experience.

To learn more about ACE and ACE 2016 visit www.aceannualmeeting.org.

To learn more about WTC Consulting, Inc. visit www.wtc-inc.net and our blog www.wtcconsulting.org.

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TASSCC 2015. WTC presents at the TASSCC 2015 Annual Conference in San Antonio, Monday, August 3rd.

Information Technology – Here are the Costs.  Show me the Value.

Phillip Beidelman – President, WTC Consulting

Dean Oyama – Consultant, WTC


To present a methodology and findings for identifying products, services, lines of business, and value delivered by an IT operation.


How much does IT cost?  How can we do IT cheaper?  How will we pay for IT?  Where’s the value?  These questions drove a detailed study of Information Technology costs at the University of Texas Southwestern Medical Center (UTSW) in Dallas.  For this study, IT and financial executives at UTSW partnered with technology cost experts from WTC.  Over a six-month period, WTC specialists examined the institution’s $85M IT operating budget for Fiscal Year 2014.  Every dollar spent on FTE and non-FTE expenses was identified.  From this evaluation over 300 Basic Products and Service Elements (BPSE) performed by the University’s central IT department were identified.  These BPSEs were then organized into IT Lines of Business.  Together this information delivered a transparent picture of IT operations spend, and clearly defined the activities and cost of a large Health Information Technology operation.  The presenters described the study drivers, and the methodology.  They also discussed how this information could be used to allocate IT costs; evaluate outsourcing targets; identify cost-cutting goals; and more.



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Rate and Funding Trends from the desk of Phillip Beidelman

One of the trends we see these days has been an extension of activity-based costing principles directly to the entire IT environment.  In the past, colleges and universities limited the idea of full costing to telecommunications and networking, but in recent years there has been significant interest in extending the identification of fully-loaded cost into IT.  It seems in these hard economic times, everyone is interested in what things really cost and how the cost of services might be reduced.  One way to reduce costs is to conduct an analysis of services provided by central providers on campus and departments.  This analysis will give you the knowledge necessary to consolidate duplicate services, discontinue departmental services that are centrally provided, or combinations of other ways to reduce your IT costs.

Another trend we have been seeing across different institutions is an interest in integrating strategic technology planning, with capital and operating cost projections, and the development of rate and funding plans to come up with a realistic picture of what it will take to fund strategic goals.  These are complex interactions that need clear issues-based decisions.  Creating such models and plans for your institution will allow for greater flexibility for the adoption of newer technology solutions, like mobility.

With all the issues in the economy today, it is important to fully utilize your budget in a way that best benefits your institution.  Creating a practical 5 or 10-year plan will help you focus on what is important and make sure you are able to reach all your strategic goals.

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Ask the Expert!

Come visit WTC Consulting, Inc. at the 2011 NACUBO Annual Meeting in booth #1330 to meet Dean Oyama, our Rate & Funding expert, and ask him all your most perplexing questions on the latest issues and trends in the industry.  Dean has been the lead consultant on all of WTC’s activity based costing studies.  He has 21 years of consulting experience with emphasis on financial assessments, analysis, and rate development.

Come get the answers to questions such as…

– Is it time to consider a new rate & funding model?

– Are your current recovery models sustainable for the future?

– What is the cost to deliver departmental services? and Where should costs really be cut?

For more information on the 2011 NACUBO Annual Meeting, held in Tampa Florida on July 9-12,  visit www.nacubo.org

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