Remaining in control of software and cloud procurement is rapidly becoming a real challenge and more complex. As organizations transform, the way they work and the services they offer change, so the demand to adopt a wider range of software and cloud services increases. Traditional IT and procurement processes can be bypassed completely in the rush to deliver new services to employees and customers alike.
Entire organizations can be under pressure to digitalize their operations. If employees need to wait for services to be allocated to them, it can lead to a frustrating user experience. With cloud and SaaS services readily available from any browser, this frustration can result in an increase of shadow IT and unauthorized software. Over half of organizations report that up to 40% of their IT budget was spent on solutions outside the purview of the IT department.
IT and procurement can quickly become out of step and mis-aligned, struggling to maintain visibility and control over the proliferation of software and cloud services being adopted. The task of managing costs and associated risks, and drive value from existing software and cloud investments becomes nearly impossible.
The result is an overspend on software and cloud services. With little control and accountability, the job of the procurement team can be daunting. With a third of software estimated to go unused, there is a huge opportunity for the procurement team to make real cost savings through the adoption of Digital Supply Chain processes and principles.
Procurement needs to be put back at the center of purchasing software and cloud services and work in close alignment with IT, so that organizations can regain control and tackle these issues. An effective and efficient Digital Supply Chain (DSC) can provide this control and reduce the workload of busy procurement teams.
While the majority of software and cloud spend, and indeed focus, tends to be directed to managing a small number of strategic vendors like Microsoft, SAP and Oracle, it is the long tail – the myriad of smaller software vendors – that typically make up to 90% of an organization’s software transactions. Managing this mass of providers is all but impossible for large and medium sized businesses without using automated tools.
DSC uses a centralized catalog that users can access to quickly and easily find and request the software and services they need. But it also puts governance, security and control back into the procurement process. A well-implemented DSC means that procurement teams can automatically check for unused licenses before procuring new ones, ensuring spend is not being wasted. Procurement can also work hand in hand with IT to identify optimization and rationalization opportunities, preparing for contract renewals and negotiations in good time armed with the data they need to make informed decisions.
DSC results in better and faster software and cloud provisioning at a lower cost. But beyond bottom line savings DSC gives procurement managers the visibility and control they need to manage their teams’ workloads, meet the challenge of shadow IT and contribute to minimizing business risk and the cost of IT.
Just as importantly, DSC gives your procurement teams the right data to drive the business forward with smarter buying decisions. Better visibility means you can make better future purchasing decisions. And you will have the right tools and answers in place to get a better deal when the time comes to renegotiate with suppliers.
DSC means procurement managers can get back to doing procurement and thinking strategically for the longer-term interest of the business. SoftwareONE has the tools and expertise to help you take back control of software procurement and management.
Download our "Procurement Manager’s Guide to Efficient Software Procurement" to get a deeper understanding of why you should care about DSC and how it can make your job easier.
Download our "Procurement Manager’s Guide to Efficient Software Procurement" to get a deeper understanding of why you should care about DSC and how it can make your job easier.
