Financial Management for Service Owner Workspace

  • Release version: Xanadu
  • Updated August 1, 2024
  • 2 minutes to read
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    Summary of Financial Management for Service Owner Workspace

    Financial Management for Service Owner Workspace enables integration with preconfigured service offering cost models, allowing users to evaluate expenses and generate cost lines for defined service offerings. Note that as of the San Diego release, Service Owner Workspace is in a planned deprecation, and new customers cannot activate it. Existing customers will still receive support, and details about product replacement can be found in the Service Owner Workspace documentation.

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    Key Features

    • Activation of the Financial Management for SPM plugin (com.snc.financialmanagementforspm) provides access to base system models and demo data.
    • The Service Portfolio Management Estimated Spend plugin (com.snc.spm.spend) enhances the Service Owner Workspace experience, allowing for the use of either a local or Financial Management cost model.
    • When both Service Owner Workspace and Financial Management for SPM are activated, users can view essential cost-related fields in the Estimated Spend form section.
    • Calculated spend per service offering is displayed as a single score widget, enhancing visibility into service offering health and performance metrics.

    Key Outcomes

    With the estimated spend feature, users can:

    • Balance service performance with appropriate expenditures.
    • Compare similar services by evaluating spend against performance.
    • Verify alignment of service spending with desired goals.
    • Identify cost drivers within the service portfolio and taxonomy structure.
    • Contrast internal service spending with external provider options.

    Estimated spend calculations occur daily, allowing for accurate financial assessments at the service and portfolio levels based on the selected cost model.

    Integrate Service Owner Workspace with Financial Management to access preconfigured service offering cost models. You can use these cost models to evaluate expenses and generate cost lines based on the level of service offering for a defined cost.

    Important:
    As of the San Diego release, Service Owner Workspace is in a planned deprecation. New customers can't find or activate Service Owner Workspace. ServiceNow® continues to support existing customers with Service Owner Workspace. For information on the product replacement and the deprecation process, see Service Owner Workspace.
    Figure 1. Navigate
    Use Service Owner Workspace

    Activation and features

    Activate the Financial Management for SPM plugin (com.snc.financial_management_for_spm) to access the preconfigured, base system models. Financial Management for SPM contains demo data and activates related plugins if they are not already active.

    The Service Portfolio Management Estimated Spend plugin (com.snc.spm.spend) is available to enhance your Service Owner Workspace experience. With this feature, you can choose to use the default local service offering cost model or access the cost models offered via the Financial Management application.

    When Service Owner Workspace (com.spm_owner_workspace) and Financial Management for SPM (com.snc.financial_management_for_spm) are activated and the sn_spm_spend.offering_cost_source system property is set to the value Financial Management the Estimated Spend form section displays the fields Estimated annual spend, FM aggregated period, and FM aggregated cost. These fields reveal read-only data stored on the service offering, service, and taxonomy records.

    View calculated spend per offering in Service Owner Workspace

    When you choose to use the cost models offered via the Financial Management application, calculated spend per service offering is displayed as a single score widget in Service Owner Workspace. View Estimated Spend as part of the Overview dashboard displaying associated service offering health and performance metrics.
    Figure 2. Estimated spend
    Estimated spend
    Service offering spend estimates are combined and summed up per period to the service and portfolio levels within your portfolio taxonomy. Estimated spend at the service and portfolio level enables you to better understand costs and how this aligns with performance throughout your service portfolio. With the estimated spend feature, you can:
    • Balance your required service performance with the appropriate spend.
    • Compare similar services by weighing spend to performance.
    • Verify whether service spend is meeting your desired goals.
    • View cost drivers within your service portfolio and the taxonomy structure.
    • Compare an internal service spend to external service provider options.

    Local model compared to Financial Management model for estimated spend

    Estimated spend calculations run daily as a separate job.

    When the system property sn_spm_spend.offering_cost_source = Local Model, the estimated annual spend for a service offering, service, and taxonomy is determined by adding the estimated annual spends for all child entities. Estimated annual spend data is stored on the service offering, service, and taxonomy records.

    When the system property sn_spm_spend.offering_cost_source = Financial Managment, the estimated spend for a service offering, service, and taxonomy is determined by adding the Financial Management estimated spends for all child entities.

    For each node, determine the Financial Management estimated spend for the currently selected Financial Management period by adding all the child entity estimated spends. This happens recursively up the entire taxonomy structure, starting with the service offering, to the service, to the taxonomy.

    For detailed information about integrating with Financial Management and configuring costing for a service offering, refer to Financial Management for licensed SPM users.