Editor's Note: Take a look at our featured best practice, Enterprise Asset Management (EAM) Strategy (24-slide PowerPoint presentation). Companies in asset-intensive industries have long sought to manage huge investments in assets more effectively. Yet, after significant investment of time and money in formal Asset Management programs, this often fall short of delivering the promised benefits of more reliable assets, lower costs, [read more]
How Software Asset Management Drives Digital Transformation
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An integral part of your company’s digital transformation is the software library. If poorly managed, it can be challenging to keep up with new technologies that improve compliance and automation of processes to ensure optimal performance.
Your software library consists of critical drivers of your day-to-day operations, including various programming codes, procedures, scripts, and data. With business growth, you may need to increase functionality using more advanced software than you already have.
In such situations, software asset management enables a developer to improve your library without additional coding.
What Is Software Asset Management?
Software asset management (SAM) refers to the processes that enable effective management, regulation, and protection of all your software assets throughout their validity period, also known as a lifecycle.
Meanwhile, it’s best to thoroughly review your software licenses before deploying them. They should also be constantly examined until their expiration date or until your organization decides to retire them.
Software asset management allows your company to monitor the performance of your software licenses at every point of its lifecycle. Additionally, this enables you to identify software solutions that no longer serve your business. Through SAM, it’s possible to give a new lease of life to software holding your business back.
If you’re in New York, you can learn more about improving your software asset management from reliable firms providing IT services in Manhattan like Power Consulting. These companies offer technology solutions, including software asset tracking and management services, enabling effective management and maximum utilization of your software.
The Software Asset Lifecycle Management
Every business depends on the optimal functioning of its asset categories during the asset’s life stages. Below are the five typical phases in the lifecycle management of most software assets:
- Planning: During strategic planning, it’ll help to compare the need for requested software against your business priorities and determine whether it’s a good fit. You can also focus on finances and establish a budget while evaluating the software’s value to your processes and revenues.
- Acquisition/Procurement: This is the phase when you compare different offers for the software license and purchase it within your budget allocation.
- Deployment: During this phase, you integrate the software into your operations and make it available to your end users. You also facilitate training if necessary to improve the performance of your end users.
- Maintenance: Your software assets are actively used during this stage, which is the most prolonged phase of all assets. There’s an increased need for upgrades, audits, and license monitoring.
Over time, software users will experience challenges. Hence, maintenance work becomes increasingly necessary. During this phase, it’ll help to have a professional support team to keep your software updated. This can minimize downtime, improve efficiency, and even increase life expectancy.
- Retirement: At the end of an asset’s useful life, some notable concerns include decreased performance and rising maintenance costs. At this point, you may retire the software that no longer addresses your company’s needs.
The Benefits of SAM in Digital Transformation
It’s not unusual for businesses to realize their software library consists of unnecessary, rarely used, or poorly installed software licenses that were also acquired at exorbitant amounts. SAM prevents acquisition and overspending on software licenses and contracts that serve your business.
Unfortunately, most businesses only consider SAM when such reality strikes or when there’s an impending audit. Here are the various ways SAM benefits your company’s digital transformation process:
- Reusable Software Licenses: SAM helps you save money in the long run by allowing you to repurpose software licenses. This can be possible when the original licensees leave the organization or switch roles.
- Drives Down Licensing Costs: SAM allows you to compare your current software rights with your company’s requirements, providing insights on software shortages and surpluses. This prevents you from procuring unnecessary licenses or maintaining those rarely used.
- Enhanced Security: Despite its numerous advantages, digital transformation presents multiple security threats to your business. SAM minimizes the chances of poorly configured software that predisposes your business to software malware, cyberattacks, and data breaches.
- Improved Compliance: SAM increases your compliance levels, minimizing the financial losses bound to be incurred when you’re fined for non-compliance with software license requirements. With SAM, you’re guaranteed to use authorized records to track compliance and enhance your accountability to software providers.
- Effective Software Tracking: SAM increases your capacity to track usage and costs associated with your various software assets. SAM also automatically detects new software or user accounts in your company’s network.
- Increased Intelligence: SAM enables you to make data-driven decisions about deployed software through detailed reports.
Final Word
Software is essential to your company’s IT infrastructure, and SAM offers numerous benefits to your digital transformation process. This includes management software costs and tracking software usage. Don’t hesitate to contact professional technology service providers to manage and support your software assets.
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About Shane Avron
Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.
