The Step by Step Way to Reveal Your Optimization Potential
What is Software Portfolio Management? It is an approach to optimizing your existing software portfolio and processes.
To guarantee an efficient use of the software budget, you must compare your company’s software usage to the actual requirements of your staff, and consolidate vendors and software with overlapping functionalities.
However, this isn’t a task that can be done alongside your daily job and finished in a matter of days. It requires a much more extensive and ongoing process in which various optimization areas are analyzed, evaluated and finally optimized one by one.
Professional software portfolio management requires a comprehensive technical and commercial knowledge of software products as well as of internal processes and organizational structures.
It’s difficult to find this in one person since the knowledge is usually spread out between different people and across departments. In addition, some optimization topics for software portfolio management are so complex that it may not be within your internal resource’s area of expertise.
A professional consulting service, such as COMPAREX Software Portfolio Management, bundles the necessary know-how into a team of experts who help you to get the greatest possible potential from your software portfolio.
Let’s take a look at the four steps to sustainable Software Portfolio Management.
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Step 1: Create Transparency about Relevant Parameters
The basis of all data analyses is valid information. By introducing a solution such as the COMPAREX Portfolio Management Platform, this automatically provides a complete overview of the installed software, its usage and additional relevant information.
COMPAREX experts add specific commercial information to this technical base, such as the ongoing costs per software product and vendor or important contract information, like upcoming contract renewals. As a result, you can easily prioritize optimization steps based on cost scope and action requirements.
In this first step, certain user groups are also interviewed in order to gain background information, for example about internal processes or software requirements of the different departments. This creates the basic framework for the following data analysis.
Step 2: Show Optimization Potentials
In this step, the software inventory is classified according to functionalities and capabilities. With this information, for example, we can identify the consolidation potentials for software classes with high diversification. Software products that can be quickly resolved are identified and highlighted, such as rarely used but expensive software or software that’s end of life.
For the areas to potentially optimize, these can be prioritized based on the amount of the savings potential and grouped by periods within which the savings can be achieved.
Step 3: Create Business Cases and Quick Wins
For the software products with optimization potential, we assess various criteria and create business cases. The COMPAREX experts compare and categorize your software portfolio by 17 categories and 480 functionalities in order to identify the expensive software that can be replaced by a cheaper version, or to reduce number of vendors and products.
Furthermore, we determine critical facts of the software portfolio such as end-of-life or outdated versions. Replacement software that meets the functionality and capability of the prior product is then evaluated and recommendations for installing the newest patch version and software version are highlighted.
If software is going to be replaced, the technical feasibility is checked before taking action. When consolidating software, we examine the contractual possibilities of the vendors, as well as the costs and expenses that may arise. In addition, we evaluate the employee training requirements that may be created by the software change.
By looking at these expenses holistically, we’re able to determine the cost and savings resulting from these changes. In order to assess them, we detail them according to costs and benefits. After this, business cases are discussed with the software purchaser, the license manager and the IT strategy planner to prioritize them and develop quick wins.
Step 4: Provide Proposals for the Management
Once the optimization areas are defined and prioritized, the COMPAREX experts develop recommendations for process optimization, as well as software removal or replacement.
All findings and recommendations for action, including the costs, benefits and savings potential, are compiled in a report to present to the top management and to determine a starting point.
Why a Managed Service for Software Portfolio Management?
It requires a certain amount of time and a specialized know-how to work through these steps efficiently and to develop successful optimization measures for your software landscape.
With COMPAREX Software Portfolio Management, you gain a partner who has successfully been involved in licensing for 30 years and has been gaining experience in Software Asset Management (SAM) for 20 years. Worldwide, you have around 200 solution advisors and 300 SAM consultants who support you with your software portfolio management.
The benefits of a professional and long-term software portfolio management with COMPAREX include:
- Save up to 30 % of your software costs
- Optimize your internal processes and operative costs for the software lifecycle
- Significantly increase your IT security
- Improve your software compliance
With regard to digital transformation and ever-growing IT costs, you are arming your company for the future by creating an efficient IT environment. This allows you to use your software budget for innovation rather than throwing it out of the window for inefficiencies.
Are You Ready to Save Your Company and Keep it Competitive in the Future?
Interested in a 30 day trial of our managed service? Click here to discover how COMPAREX Portfolio Management Platform and our consulting service supports you with this challenge or fill out the form below to contact our experts.