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How much can you save with TAM? |
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When you implement a well-considered technology asset management program--a SAM, TAM, or ITAM--your company will begin discovering an enormous range of tech-related cost reductions. Your key to serious technology cost reductions will be based in how well you plan out the technology processes and infrastructure of the initiative.
"According to industry research, as many as 75% of companies over-spend on technology acquisitions."
These unnecessary acquisitions include everything from buying too many software licenses to purchasing hardware that exceeds the technical needs or capabilities of the enterprise. Read on for a some basic ideas on reversing the trends!
Here are some of the specific issues you need to consider to begin saving serious money with a technology asset management initiative:
- Start Genuinely Managing Your Technology Assets - When we say serious technology cost reductions--that is precisely what we mean. Statistically, the vast majority of companies tends to "appear" to be managing technology assets rather than "actually" doing so. To change this trend, you will have to begin your process with very simple and very visible successes. The object is to demonstrate to management and other personnel that technology asset management--or software asset management--is not intrusive. Instead, these concepts represent a more effective process of gaining a positive return on technology investments. Look for the so-called "low hanging fruit." These are the glaring problems and issues that you could adjust with little difficulty but that will bring immediate results. They are also referred to as the "easy wins."
- Match Technologies to Your REAL Business Needs - Effective technology asset management--or software asset management--is mostly about matching genuine business needs with a structured technology acquisitions and life cycle follow-up process. Quite simply, if you cannot develop an honest and measurable business need for the product or service, the chances are very good that you do not need to acquire it. Essentially, you absolutely must begin creating an effective business needs analysis for proposed technology acquisitions. These need not be complex, but they DO need to be controlled to ensure that the purchase brings measurable value--not just a short term ego-boost.
- Check to Ensure You Actually Get Your Money's Worth - A majority of businesses do not follow up on technology acquisition deliverables. If you purchase a product or service to fulfill a specific business need, you absolutely must track that product or service to ensure that you actually get what you paid for. As a subset of this critical need, you should also begin tracking "deliverable trends." Does a given vendor or reseller constantly provide products or services that do not pay off with a solid return on invested capital? Realistically, you will never spot that trend unless you establish a formal process for measuring ROIC across the entire asset life cycle.
Does this help? Let us know. Also, if you want more, we'll follow up. Remember, technology asset management, software asset management and even technology portfolio management do not have to cost a fortune to set in place. The vast majority of results will come from a narrow range of essentially common sense processes and procedures. These can frequently cost you nothing more than some serious thought and internal cooperation--and they DO pay off.
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