Governance functions should build bakeries instead
This article explores an approach for those groups involved in driving value from technology investments. They go by various names including IT Asset Management (‘ITAM’), Software Asset Management (‘SAM’), Hardware Asset Management (‘HAM’), FinOps, procurement, IT governance, financial control etc.
The art of FinOps and ITAM
Organisations need to use resources efficiently. Every good idea cannot be a top priority. ITAM linked disciplines including software, hardware, procurement and FinOps management often fail to make the cut when compared to development and innovation. Ostensibly this is right, but perhaps not when the impact is repeating issues:
- Overspending, purchasing, provisioning and paying
- Wastage of 20%, 30% or more on technology spend
- A lack of clarity over demand, consumption and compliance
- Always running to keep up with purchasing needs and renewals
- Incomplete and imperfect information hampering informed decision making
- Finger pointing over responsibilities and reduced collaboration
This can frustrate asset management, purchasing and IT finance professionals, especially when greater resources are allocated to neighbouring topics without fixing underlying problems. A natural reaction is to battle to get a fair share. This is likely to create collateral damage and later headaches.
A better way is to find ways to satiate many stakeholders; to look for ways to create enough pies for the whole collective. This requires taking a step back from the daily tussles to seek areas of mutual benefit. Positive scenarios for multiple groups are more likely to garner executive level support and recognition. Much like baking a pie there is science in the recipe and art in the execution.
Why ITAM and FinOps is a perennial struggle
SAM, HAM, FinOps and procurement all feature controls over technology that is utilised by others. The data sets from acquisition to retirement requires input from various stakeholders whose core goals are not commercial governance. Whilst they may have an interest, to succeed they must focus on other tasks.
Therefore, supporting ITAM policies can be an encumbrance, and requests may not be embraced with gusto. Without buy-in, inertia sets in and prevents significant cost savings and process improvement. ITAM should transcend a traditional policing role and become pivotal in enablement for others.
A practical path to consider
A first step is looking at the current scope for ITAM:
- Does the remit include software, hardware, cloud platforms, IT services etc.?
- Is the reach across only centralised areas or distributed functions?
- Is the culture one of regulated control or flexible autonomy?
Next, examine what you have at your disposal in terms of data, processes and networks. Determine the existing value these are providing and consider how they are appreciated. Look at parallel benefits that could be provided to others. This should help tease out what is missing or where additional perks could be derived. Initial examples might include:
- Profiling opportunities for aggregated purchasing, pricing arbitrage and lower administration
- Realising economies of scale, improved and consistent terms
- Simplified measurement that improves cost visibility and allocation
- Insights into supplier performance as well as alignment with environmental, social and governance (‘ESG’) goals
- Pooling of entitlement and reporting to improve utilisation of licensing and compliance risks
- Automation and alerting around discrepancies and significant changes
Enabling success also needs context. ITAM should understand objectives at both organisational and stakeholder group level, then map how it can align in pursuit of them.
You can start with the obvious, such as IT security needing information on the technology portfolio, lifecycle status and shadow IT. Curiosity will expose desires that link to your role, such as what provisions exist in case risks manifest, feedback loops over patching coverage, or challenges in defining product overlaps and redundancy.
Being gregarious is an advantage, often uncovering areas that help you, such as an additional data source. Reaching out should be free of trepidation. Well-placed interest triggers a natural human reaction to share information. At the very least, it will create future communication channels or inform how to structure a business case.
A picture of what you and others have and want enables a path towards delivering. The rationale for investment of time and funds can be made clear. Use cases that benefit the many are more attractive and also dissipates fighting over the proverbial pies; you are helping to build the bakery.
Analogies for effective ITAM and FinOps
Facilitating streamlined technology management benefits everyone more than struggling over resource limitations and power bases. Keeping with the food theme:
- Shared kitchens allow multiple chefs to create diverse dishes efficiently with the equipment available, with organic sharing of expertise. Relationships are strengthened which drives overall performance and ultimately customer satisfaction.
- Community gardens have members working together to cultivate a variety of crops, sharing in the harvest, rather than reaping only what they sow.
A collaborative approach to ITAM and FinOps helps ensure all stakeholders get more of what they need.
Like with social enterprises, there will be some that contribute less and take more of the spoils. There are others that may not be interested, taint or waste some produce. ITAM and FinOps professionals are like volunteer groups – they see the greater benefits, enjoy the activity and take satisfaction from improving situations. Ultimately, they are valued highly by those that know and matter.
In conclusion
Success is less likely when competing for a share of the pie, especially for ITAM and FinOps groups. Instead, seek to understand and foster collaboration; be the catalyst for creating value for disparate stakeholders. With charm and perseverance, there can be an abundance of pies, perhaps even a bakery to feed a whole community.
