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SOFTWARE PROCUREMENT REIMAGINED: MINIMIZE FRICTION TO MAXIMIZE VALUE



A process as business critical as software procurement shouldn’t be full of
friction, or worse, surprises! Yet, for many organizations it is. The hassle of
collecting and analyzing the necessary data and the stress of tracking down
stakeholders and getting their sign off for new software purchases and constant
renewals is exhausting. And all that extra work doesn’t often lead to much added
value today.

Luckily, all of that can change. We’ve found a way to provide a frictionless
software procurement experience. But before we introduce the fix, let’s dive
into what makes software procurement such a pain.


WHAT ARE THE CHALLENGES OF SOFTWARE PROCUREMENT?

For too long, the critical work that goes into preparing for software purchases
and renewals has happened in the shadows. IT and procurement teams are expected
to track down the people and data and coordinate reviews and approvals. But
manual processes and siloed systems, lack of visibility and alignment, and
limited access to data and insights make it near impossible to consistently
deliver value across the process.


MANUAL PROCESSES AND SILOED SYSTEMS ARE BARRIERS FOR ENGAGEMENT

It’s not unusual for organizations to use around seven disconnected tools to
support procurement decisions,  such as spreadsheets, communication apps, vendor
assessment solutions, and procure-to-pay (P2P) or ERP systems. And processes
aren’t consistently followed, making every purchase and renewal feel like a
one-off. Existing ERPs and P2P systems have hard-to-use capabilities, which lead
to a poor user experience. Whatsmore, using these systems is quite cost
prohibitive, as expensive licenses need to be broadly provisioned to include
employees making requests and stakeholders reviewing and approving them.


LACK OF VISIBILITY AND ALIGNMENT SLOWS DOWN DECISIONS

Buying teams of 6-10 stakeholders are often involved in purchase and renewal
decisions, with ownership of SaaS budgets and apps spread across the
organization — some in IT, others within business teams. Coordinating through
spreadsheets, email, siloed systems, and general Slack channels is
time-consuming and inefficient since there isn’t a dedicated, single location
for data and discussions. This also leaves the organization with no visibility
across renewals and software intake processes. As a result, decision makers
don’t have a single place to understand the context and reasons for past
decisions. And gaining alignment for decisions can take tens of meetings and
weeks or months of effort. Worst case, decisions stall or no decision is made at
all.


LIMITED ACCESS TO DATA AND INSIGHTS WEAKENS YOUR NEGOTIATING POSITION AND
INTRODUCES RISK

Not having pricing, usage, and spend data at the right level of detail can
result in poor negotiations and missed cost savings or optimization. For
example, organizations can miss out on up to 30% in cost savings because they
don’t have pricing benchmarks for their apps. Additionally, because of this lack
of insight internally, many teams rely on reports from vendors, which are often
out of date and skew in the vendor’s favor. Each renewal is an opportunity to
rationalize the portfolio by reviewing overlapping or similar apps.
Unfortunately, most organizations lack the visibility and insight to take these
actions.

Gartner found that 83% of legal and compliance leaders identified third-party
risk after initial onboarding and due diligence. Knowing whether the vendor
passes your organization’s risk assessment is important during purchases and
renewals in case shortcomings need to be addressed. Without assessments
completed in a timely manner, your organization may feel rushed by deadlines,
such as contract end dates, and not conduct a comprehensive evaluation.


PRODUCTIV APP PROCUREMENT HUB TAKES THE FRICTION OUT OF SOFTWARE PROCUREMENT

Buying and renewing software never stops. But the stress can with the Productiv
App Procurement Hub.

Built on SaaS Intelligence™, App Procurement Hub automates procurement workflows
to orchestrate reviews and approvals across multiple departments and equips you
with the data and insights needed to reduce risk and drive stronger
negotiations.

See App Procurement Hub in action

Let’s go



CONSISTENT, INTUITIVE PROCESSES WITH AUTOMATED WORKFLOWS

With App Procurement Hub, organizations can now introduce consistent, automated
processes for software procurement to help enforce policies at scale in a
cost-effective manner and free up procurement teams to focus more of their
efforts on strategic purchases and renewals.

And unlike the complex, user-unfriendly ERP tools many organizations use or have
considered for their processes today, the intuitive user experience and
integrated tools improve alignment and adoption to save valuable time. You’ll
also save money by not needing to license stakeholders separately. This could
help a midsize organization save up to $275K in license costs annually, which
would be needed if you were to automate intake and renewal processes using an
ERP or P2P solution and had to license employees across departments.


STRATEGIC ALIGNMENT WITH DATA-DRIVEN COLLABORATION

People are essential to procurement processes, but the stress of aligning
leaders across the business for constant purchases and renewals is exhausting.
That’s why we’ve made it easy to identify and include the right stakeholder at
the right time in the process. And with contract data, expense data,  usage
insights, overlapping apps, and rightsizing recommendations embedded into the
workflow, all teams have instant access to the data they need to quickly make
decisions.

App Procurement Hub is designed to support the way people work and collaborate
today. It features a two-way integration with Slack which automatically creates
a dedicated Slack channel with right stakeholders to enable collaboration and
automatically archives the channel once the process is complete. For
transparency and record keeping, all task assignments, approvals, and comments
are synced between Productiv and Slack. In addition, any document uploads from
Slack, such as a vendor quote, are automatically uploaded into Productiv. All
the comments, decisions, and documents for a given renewal or intake are
available in Productiv for future reference.

In a Forrester Total Economic Impact™ study commissioned by Productiv, Forrester
Consulting found that using Productiv can decrease time spent on renewal
preparation by 65-75% by providing a single source for renewal insights.


IMPROVED NEGOTIATIONS AND REDUCED RISKS WITH ACTIONABLE INSIGHTS

Too often, procurement and IT leaders enter negotiations underprepared and
unequipped with the data and insights necessary to gain leverage in the
conversation. By ensuring you begin renewal discussions early enough to create
alignment and collect the data you need, Productiv will have you prepared to
confidently drive the most value during vendor negotiations.

Save time by having important data and insights at your fingertips, including
historical contract discussions and license recommendations. Save money by
knowing what your peers are paying with app and SKU pricing benchmarks. And
minimize risk with timely vendor risk assessments and vendor intelligence, which
include business health data, vendor-related internal information, and
questionnaires for security, privacy, and compliance.

Through interviews with our customers, Forrester Consulting also found that a
2,000 employee organization could save over $130K annually just from contract
negotiations using Productiv pricing benchmarks.


WHAT MAKES THE PRODUCTIV APP PROCUREMENT HUB DIFFERENT

Unlike other SaaS Management solutions without automated software procurement
workflows and comprehensive insights, App Procurement Hub:

 * Automates workflows effectively and consistently with ease for a positive
   user experience through the creation of renewal, intake, and custom workflows
   (such as consulting service purchases) in a no-code workflow builder
 * Orchestrates collaborative reviews and approvals across multiple departments
   from one location with data and insights to guide proposal creation and
   support the review process, along with two-way updates through Slack to
   capture messages for reference in current and future renewals
 * Prepares you with the insights you need to negotiate confidently and reduce
   risks, including pricing benchmarks by app and SKU, usage data, license
   recommendations, vendor assessments, and purchase and renewal history




See App Procurement Hub in action >





LEARN MORE ABOUT HOW PRODUCTIV HELPS PROCUREMENT TEAMS

Hear how Omar Ghani, Head of Strategic Sourcing at Reddit, uses data and
insights to align stakeholders ahead of renewals.

Get an easy-to-follow framework to help your organization implement a strategy
for continuous SaaS cost optimization.

See how procurement leaders use Productiv to improve SaaS Management.

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POSTS NAVIGATION

← Eliminate Waste And Unlock Value In Healthcare Software Spend
New Productiv App Procurement Hub Takes the Friction out of Procuring Software →

Related Blog:

FROM REQUEST TO REQUISITION: BEST PRACTICES FOR FASTER DECISIONS

WHAT’S NEW IN PRODUCTIV?

SOFTWARE PROCUREMENT CHALLENGES AND SOLUTIONS




Related Resources:

WEBINAR: 5 BENEFITS INFOBLOX HAS SEEN FROM SAAS GOVERNANCE

WEBINAR: HOW AIRTABLE DRIVES SAAS GOVERNANCE AND PORTFOLIO RATIONALIZATION WITH
PRODUCTIV

WEBINAR: CIO INSIGHTS: BRING PEOPLE, PROCESSES, AND DATA TOGETHER TO MAXIMIZE
SOFTWARE INVESTMENTS



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