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Chargeback model, old topic new aspect

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  • Vilppu Kauppinen
    Hello group, this topic has been already in this group, but I think I ll raise this topic again because of the BSM (business service model) is in fashion.
    Message 1 of 3 , Dec 2, 2007
      Hello group,

      this topic has been already in this group, but I think I'll raise
      this topic again because of the BSM (business service model) is in
      fashion.

      We're looking for a new model to our batch processing pricing based
      on the service. We're currently charging our customers based on the
      jobs executing per month. This has been easy to calculate, because
      our shop also pays BMC Software by task pricing. But our sales
      persons demands something more and advanced.

      We have done some pre-analysis and we've found these key factors:
      executing density
      1 time per month or rarely (1)
      1 time per week (2)
      more often (3)
      workflow complexity
      simple (1)
      medium (2)
      high (3)
      workflow criticality
      no criticality (1)
      normal (2)
      critical (3)

      These factors create the service class 1-3 (3rd is the highest).

      Then we have to join the service level time to these workflows. We
      have these in use:

      service level C (workdays 08:00 - 17:00) =X1 (service level
      factor)
      Service level B (workdays 07:00 - 21:00) =X1.3
      service level A (24/7) =x1.5

      And finally we have to calculate how many workflows are affected in
      that service, so we multiply the price with that.

      It doesn't matter how many jobs workflow contains, only if the
      workflow devides to another branch. That's a new workflow (multiply).
      We have calculated, that currently in our shop 1 workflow contains 4
      jobs by average. So we have to price our workflows just right,
      otherwise we pay the customers batch processing monitoring. In the
      beginning of this service, we propably lose some euros but if the
      customer is satisfied pricing like this they will implement new
      workflows and also our expenses will minimize when we get the extra
      tasks cheaper from BMC.

      Has anybody implement anything like this kind of pricing or something
      more advanced?
    • lauriekenley
      Huh, that is very interesting to me. I ve got a couple questions: 1. Who creates the workflows? The lines of business to whom your providing Control-M as a
      Message 2 of 3 , Dec 3, 2007
        Huh, that is very interesting to me.

        I've got a couple questions:

        1. Who creates the workflows? The lines of business to whom your
        providing Control-M as a service? Or do you have schedulers on your
        team who do so?

        2. Do you plan to chargeback for agent installs & maintenance?

        We have schedulers that do project work in our department, and our
        customers also schedule their own jobs, depending on the line of
        business. So, that's a service we're providing to some that we're
        not getting cashmoney for.

        As for the agents... Oh my paws and whiskers - the agents! We have a
        bazillion agents out there and they are always going bump.
        Unvailable, config.dat corrupted, Bubba from Server Ops installed the
        wrong version, etc. We spend an inordinate amount of time on agent
        woes.

        I think we have, ostensibly, a set fee per agent, but I am not sure.
        Does anyone else separate out the jobs and the product maintenance
        charges?

        Thanks,
        Laurie

        --- In Control-X@yahoogroups.com, "Vilppu Kauppinen"
        <vilppu.kauppinen@...> wrote:
        >
        > Hello group,
        >
        > this topic has been already in this group, but I think I'll raise
        > this topic again because of the BSM (business service model) is in
        > fashion.
        >
        > We're looking for a new model to our batch processing pricing based
        > on the service. We're currently charging our customers based on the
        > jobs executing per month. This has been easy to calculate, because
        > our shop also pays BMC Software by task pricing. But our sales
        > persons demands something more and advanced.
        >
        > We have done some pre-analysis and we've found these key factors:
        > executing density
        > 1 time per month or rarely (1)
        > 1 time per week (2)
        > more often (3)
        > workflow complexity
        > simple (1)
        > medium (2)
        > high (3)
        > workflow criticality
        > no criticality (1)
        > normal (2)
        > critical (3)
        >
        > These factors create the service class 1-3 (3rd is the highest).
        >
        > Then we have to join the service level time to these workflows. We
        > have these in use:
        >
        > service level C (workdays 08:00 - 17:00) =X1 (service level
        > factor)
        > Service level B (workdays 07:00 - 21:00) =X1.3
        > service level A (24/7) =x1.5
        >
        > And finally we have to calculate how many workflows are affected in
        > that service, so we multiply the price with that.
        >
        > It doesn't matter how many jobs workflow contains, only if the
        > workflow devides to another branch. That's a new workflow
        (multiply).
        > We have calculated, that currently in our shop 1 workflow contains
        4
        > jobs by average. So we have to price our workflows just right,
        > otherwise we pay the customers batch processing monitoring. In the
        > beginning of this service, we propably lose some euros but if the
        > customer is satisfied pricing like this they will implement new
        > workflows and also our expenses will minimize when we get the extra
        > tasks cheaper from BMC.
        >
        > Has anybody implement anything like this kind of pricing or
        something
        > more advanced?
        >
      • Vilppu Kauppinen
        Hi Laurie and the others, 1.We have a scheduler team, who is definning the flows as our customers demands. It s quite surprise how little our customers want s
        Message 3 of 3 , Dec 3, 2007
          Hi Laurie and the others,

          1.We have a scheduler team, who is definning the flows as our
          customers demands. It's quite surprise how little our customers
          want's to know the details how it's done.

          2.All the installations and maintenance are covered with that
          monitoring service. We have agreed with customer that we have two 6
          hour maintenance window per month (odd sunday afternoons).

          Of course we also charge every change or new workflow creation by
          project work or hourly based.

          That's how it's done in our shop.

          Vilppu

          --- In Control-X@yahoogroups.com, "lauriekenley" <lauriekenley@...>
          wrote:
          >
          > Huh, that is very interesting to me.
          >
          > I've got a couple questions:
          >
          > 1. Who creates the workflows? The lines of business to whom your
          > providing Control-M as a service? Or do you have schedulers on
          your
          > team who do so?
          >
          > 2. Do you plan to chargeback for agent installs & maintenance?
          >
          > We have schedulers that do project work in our department, and our
          > customers also schedule their own jobs, depending on the line of
          > business. So, that's a service we're providing to some that we're
          > not getting cashmoney for.
          >
          > As for the agents... Oh my paws and whiskers - the agents! We have
          a
          > bazillion agents out there and they are always going bump.
          > Unvailable, config.dat corrupted, Bubba from Server Ops installed
          the
          > wrong version, etc. We spend an inordinate amount of time on agent
          > woes.
          >
          > I think we have, ostensibly, a set fee per agent, but I am not
          sure.
          > Does anyone else separate out the jobs and the product maintenance
          > charges?
          >
          > Thanks,
          > Laurie
          >
          > --- In Control-X@yahoogroups.com, "Vilppu Kauppinen"
          > <vilppu.kauppinen@> wrote:
          > >
          > > Hello group,
          > >
          > > this topic has been already in this group, but I think I'll raise
          > > this topic again because of the BSM (business service model) is
          in
          > > fashion.
          > >
          > > We're looking for a new model to our batch processing pricing
          based
          > > on the service. We're currently charging our customers based on
          the
          > > jobs executing per month. This has been easy to calculate,
          because
          > > our shop also pays BMC Software by task pricing. But our sales
          > > persons demands something more and advanced.
          > >
          > > We have done some pre-analysis and we've found these key factors:
          > > executing density
          > > 1 time per month or rarely (1)
          > > 1 time per week (2)
          > > more often (3)
          > > workflow complexity
          > > simple (1)
          > > medium (2)
          > > high (3)
          > > workflow criticality
          > > no criticality (1)
          > > normal (2)
          > > critical (3)
          > >
          > > These factors create the service class 1-3 (3rd is the highest).
          > >
          > > Then we have to join the service level time to these workflows.
          We
          > > have these in use:
          > >
          > > service level C (workdays 08:00 - 17:00) =X1 (service level
          > > factor)
          > > Service level B (workdays 07:00 - 21:00) =X1.3
          > > service level A (24/7) =x1.5
          > >
          > > And finally we have to calculate how many workflows are affected
          in
          > > that service, so we multiply the price with that.
          > >
          > > It doesn't matter how many jobs workflow contains, only if the
          > > workflow devides to another branch. That's a new workflow
          > (multiply).
          > > We have calculated, that currently in our shop 1 workflow
          contains
          > 4
          > > jobs by average. So we have to price our workflows just right,
          > > otherwise we pay the customers batch processing monitoring. In
          the
          > > beginning of this service, we propably lose some euros but if the
          > > customer is satisfied pricing like this they will implement new
          > > workflows and also our expenses will minimize when we get the
          extra
          > > tasks cheaper from BMC.
          > >
          > > Has anybody implement anything like this kind of pricing or
          > something
          > > more advanced?
          > >
          >
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