Achieving effective digital transformation is no small feat. In order to do so, many crucial elements need to come together. This is where Digital Supply Chain Management comes in. Effective Digital Supply Chain management can resolve many of the hurdles associated with digital transformation through visibility into assets, EIC, and spend.
Before you can begin, however, you must first identify the specific pain points hindering your digitization strategy. Keep reading to get to know these problems better and learn how you can solve them using Digital Supply Chain.
Reducing and Controlling Costs
Reducing the cost of software is a challenge many companies face. What this really means is that your organization is hoping to decrease expenses while increasing profits, which is not always easy to do. You need complete visibility into what you are spending, where you are spending, and why. Once you take a deeper look, you may find that the number you get does not add up with the number you were expecting.
So, how do you fix that? Reducing costs will require a re-haul of your current spend, which includes both IT and software. Digital Supply Chain management allows you to have visibility into deployments and uses, which means you will have a better understanding of where your software is in the lifecycle. You will then be able to determine if those software or licenses should be retired or if they should be repurposed. This well help you optimize your current costs so that you are only spending money on IT imperatives and the software you truly use. Otherwise, you could continue to pay for assets that are of no use to you and your employees. Look for a solution such as SoftwareONE’s PyraCloud platform that allows you to forecast, budget, and acquire new assets so you can maximize your ROI and put money back into your organization.
Deliver More Efficient Services
A core motivation behind digital transformation is to become as efficient as possible. Understanding how you can deliver more efficient services to your end users is a pain point that many struggle with due to a lack of visibility. This will, again, require you to look within your strategy and optimize.
Digital Supply Chain visibility can help to solve this problem by maximizing the value of your current software portfolio. Instead of repurchasing subscriptions or licenses, take a deep dive into your inventory. There could be items that you own and don’t even know it, which could be re-harvested to create custom catalogs for your users to request from. Recycling and optimizing not only helps cut back on costs, it makes your strategy more efficient.
Getting Visibility into Who is Purchasing What
Gaining visibility into who is purchasing what software and why is a constant roadblock to digital transformation. No matter how large your organization is, purchases could be slipping through the cracks. You need to know who is ordering software and why exactly they need it so that you are never on the wrong side of compliance, or facing security risks as a result of Shadow IT.
Leveraging Digital Supply Chain management strategy will better align your organization’s software consumption with demand. If someone purchases software that ends up completely underused, that could fall back on your organization. Once you gain visibility into the Digital Supply Chain, you can either promote the usage of that software or uninstall it. Uninstalling underused software will reduce your compliance and audit risk since there will be less to keep track of.
Understanding the Current State and How it Relates to Business Goals
Once you have a full view of your inventory, it can be difficult to understand how you can use that information to develop Business Intelligence. The ability to examine your portfolio and how it can be translated into important insights and enable critical business decisions, however, is vital.
A good Digital Supply Chain Plan means you will be able to see your estate and how it is being used so that you can take the next step in meeting your business goals. If you’re able to see the entirety of your portfolio, you better can decide where money should be allocated, which licenses should not be renewed, and so on. This will put you ahead of the curve and on track to meet your goals.
Ensuring Security and Compliance
Finally, security will always remain an issue to be aware of. If you do not know where all of your software is deployed and how much of it is being used, you cannot be sure that you are in full compliance. Without full visibility, your organization is at risk.
To remedy this issue, Digital Supply Chain tools can be used to view your inventory in combination with your consumption. This pairing will let you know whether or not you are at risk for an audit or falling out of compliance. After all, there should be no level of uncertainty when it comes to security and compliance.
Working Past Your Pain Points
While all of these challenges can seem like they are standing in the way of your organization’s digital transformation, Digital Supply Chain management tactics can be used to work through them. When you have strong visibility into your Digital Supply Chain, you have the insights you need into your organization. And as long as you continue to uphold that strategy, you won’t have to worry about working through these pain points much longer.
Digital Supply Chain, Digital Transformation
Supply Chain, Strategy, Trends
Team Lead Software Lifecycle Management
Digital Transformation & Software Asset Management