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Is Poor Procurement Data Quality Killing Your SAM Tool Investment?

Thought-Leadership by Kelly Altair
on March 31, 2016

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Today we are seeing a trend across organisations experiencing major issues with generating value from their Software Asset Management (SAM) tool investment. Significant time, resources and funds have been assigned to deploying an enterprise-wide solution that is expected to deliver automated license compliance reporting and provide visibility on optimisation opportunities. And that is exactly what it should do. So what makes accurate reporting so difficult?

Investing in a solution that provides transparency and automation across software license management, usage, and compliance is now considered a must-have for organisations. Attempting to manually control your software legal and financial risks is impossible, mainly due to the complexity with understanding the different and ever-changing metrics, rights, and obligations across each individual software product you’re using. While the overall cost to deploy this solution is not for the faint-hearted, if designed and deployed correctly with the proper processes in place, you can expect an ROI while fully enjoying the ongoing benefits those SAM tools have to offer.

Deploying a SAM tool must be treated as more than a technical implementation, and this is where most organisations fail. Be sure you are asking – and answering – the right questions:

  • Did the design of your solution incorporate operational integration requirements as well as technical?

  • How are you are going to source and present your other valuable inventory stream into your SAM tool – your everyday procurement data?

  • Did you identify whether or not your procurement practices ensure the necessary data elements that your SAM tool needs to capture are available?

A leading IT data management company recently analysed 7,500 purchase orders from four financial institutions over a two year period to understand current data problems plaguing Software PO’s. They all had significant issues with product name variations, data entry errors, coding errors and both license and maintenance transparency issues. Any one of these issues will inhibit the benefits your SAM tool investment should be providing you. I personally have audited a large number of our customer’s PO’s and almost all of them fail to capture the required elements a SAM tool is dependent on when a transaction is executed.

The good news is it can be fixed!

The first step is to quantify the size of your problem so the right response can be identified. Options to resolve include implementing manual, reactive workarounds to introducing stringent materials management across your procurement practices through to expanding on leveraging marketplace intelligence and integrating with 3rd party platforms. You can of course do nothing and continue to maintain that expensive SAM tool you know isn’t working as it should be.

If you suspect the quality of your organisation’s procurement data is killing your SAM tool investment and would like to discuss mitigation strategies, then click the banner below to contact your SoftwareONE Account Manager and begin to optimise your SAM potential.

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