A Services Framework for Business

About the Book

The book explains a universal approach for modeling one or more organizations and their contribution to the corporation's needs. The book builds on standard industry approaches, such as Time Driven Activity Based Costing (TD-ABC) and Total Cost of Ownership (TCO), to provide a powerful basis with which one can predict a future organizational state. Using this approach, workload (defined as the total time a resource spends performing useful work for the company) is segmented into three areas: project work, process work, and repetitive work activities performed in the context of some cost driver.

Cost drivers have two parts: a name, such as servers, applications, manufacturing equipment, etc.; and a count, such as 32 multi-axis milling machines, 74 production applications, etc. With a highly evolved TD-ABC approach, one can look at the impact of adjusting the cost drivers has on the organizationÕs workload and therefore the overall change in resources needed to support the cost drivers.

Given a resource's time capacity for useful work and its total workload, the book shows how what if… scenarios are created that can represent the financial outcome of any project. The model evolved in the book is an essential and generalized business operational planning tool.

About the Author

Mr. John Carnegie has over thirty-five years in the computer industry. His undergraduate degree is in mathematics and he has a graduate degree in Computer Science - both from Southern Methodist University. Mr. Carnegie has been employed at Texas Instruments and has, over the past twenty-five years founded three companies. His latest company, The Enterprise Modeler LLC, provides financial operational modeling services to Fortune 500 corporations.