Strategies for maximising your ROI when building a SAM function

04 May 2016

 By Paul Craig

 

Last month, Jill Powell, our IT Asset Management (ITAM) Director, was keynote speaker at the UK Oracle User Group event that took place in London, and I was curious to learn about what’s on Oracle end users minds, so I went along. I’ve been reflecting on the conversations I had on that day, and it got me thinking about the challenges our clients face when it comes to selecting a vendor and determining the benefits of implementing a comprehensive ITAM solution.

What issues are our clients facing?

Implementing an IT strategy or technology involves significant cost to the business, but very few businesses are able to accurately predict what the realised benefits will be as a result. Businesses struggle to identify where to target potential investment in IT asset management, and an ROI assessment will help to offer visibility on vendor focus areas and process gaps. For example, a business may negotiate a highly favourable price point for the purchase of software when in fact it may not actually be needed or used. Or, alternatively, a business may be using inefficient procurement processes altogether resulting in unnecessary cost associated with purchase.

So what can clients do to address these challenges?

Here are some ideas that some clients might do to deal with these challenges. One option is an ROI assessment, which is a quantifiable discovery exercise designed to assess key ITAM maturity elements, review IT expenditure and identify potential cost savings within your organisation. Once these areas have been identified, it is possible to build an informed business case for ITAM investment.

 

Our top five tips

  • Have a methodology to bridge the gaps in your existing ITAM processes rather than doing a complete rework (this is a great quick win).
  • Capture real data based on the outcomes of previous projects or activities over time and proactively build a knowledge base that enables you to enact change and embed a culture of cost-savings. This will help you to determine your ROI on an ongoing and proactive basis, rather than being ad-hoc and reactive.
  • Create a model based on the information provided by your key stakeholders, and obtain accurate software procurement data that allows you to determine potential cost savings in a number of areas. This can result in a three year percentage saving measured against perceived annual software spend.
  • Apply best practice methodologies that are repeatable to quickly realise savings, map your existing processes to best practice and provide/seek clarity around software/hardware contract, procurement and licensing mechanisms.
  • To obtain a better understanding of how business goals can be achieved, identify ITAM business practice benchmarks in your industry to know how and where savings can be quickly realised, plus, identify the greatest ‘opportunities’ and ‘threats’ within your organisation.

 

When I work with clients to help them implement processes within their organisation, I tend to start with providing ROI assessments, through a series of workshops and utilisation of our ROI calculator that is tailored to the client’s key challenges. If you want more advice to maximise your ROI when building or rethinking your SAM function, get in touch.

 


For additional information, please contact:

Paul Craig
Manager, IT Asset Management

T: +44 (0)11 7929 1500

E: [email protected]

 
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