Adopting Value-Adding SaaS Procurement

Ekaterina Mizrobova

Procurement is an important function nearly in any company. The common view is that the Procurement’s major objective is to drive the bottom line down. However, the recent trend among the companies is shifting the focus from cutting costs to adding value.

We, at Binadox, suggest you adopting the idea of a value-adding procurement in addition to the idea of cost optimization, and taking measures that will help you add value to the business through smarter procurement. To help you with that, Binadox provides complete visibility into your SaaS and its usage, which can be leveraged both by the IT and Procurement.

The most obvious conventional benefits of the efficient SaaS procurement are negotiating the most attractive price, signing a volume contract with application vendors and getting a discount for that. However, we are assured that the Procurement is capable of much more in case there is the right tool available.

With Binadox SaaS Web Usage Monitoring the Procurement can not only optimize costs by signing volume contracts for entitlements, part of which may not even be used in the future, but also gain insights into the usage patterns across the organization. On the basis of such insights, the Procurement can make decisions as to future purchases or revoke entitlements that have not been used or actively utilized. On the other hand, measures can be worked out to improve usage efficiency and employee productivity. The reasons of inactive usage can be different. There can be just no need in a purchased application for an employee; or they may not know how to use it. In such cases, the corresponding license can be transferred to another user who will actively use it; or an additional training can be arranged to enable employees to adopt new SaaS applications. This is value adding through efficiency and productivity improvement.

With SaaS spreading and the development of SAM (Software Asset Management) tools there have appeared more opportunities for the Procurement to drive value. Now it is possible not only to track whether a specific application is used but also measure usage of its features and see how intensively they are used.

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