The intuitive, out of the box visibility that CIO InCight® provides for IT Vendor spend has been a tremendous collaboration platform for office of the C suite to identify and implement cost optimization strategies that have a positive impact on the P&L. This month we feature how a client leverages InCight as the centralized system of truth and feature two recent optimization plays.
InCight Analyzer > Reducing Spend with Dell Technologies
The company’s IT Finance led analysis of their “Top Ten” IT Providers based on total spend to explore where to optimize spend. CIO InCight’s automated Vendor TruSpend®, defined as the all-in spend (comprised of all subsidiaries) and how purchased (direct and via reseller) is the de facto source for the exercise and identified Dell Technologies as the initial vendor to target as annual spend was over $120M.
Out of the box InCight delivers the Dell Technologies all-in spend spanning Dell, Dell EMC, VMware, and Secureworks purchases both direct and through 13 resellers. Worth noting $4.2M of spend was done by 3 lines of business for PCs and Laptops direct with Dell, outside of central IT aka “shadow IT”.
IT Finance, IT and Procurement leadership met and developed strategic initiatives to:
- Consolidate purchasing from 13 down to 5 VAR partners
- Have all business led spend centralized under IT
Significant savings were achieved via better discounts due to their ability to aggregate buying power, something sorely lacking pre InCight.
From the Senior VP, IT CFO:
“InCight has quickly become our sole system of record for vendor spend with stakeholders spanning, IT, Finance, Procurement, and the Lines of Business.
With all collaborating from a common data set we can point to the intuitive visibility as the driver for cost takeout via better negotiating leverage and supplier consolidation thanks to finally knowing our TruSpend.”
InCight Visualizer > Elimination of Info Sec Vendors with Overlapping Functionality
An expense reduction opportunity for the CISO was initiated by a “double click” on their Information Security & Compliance Category spend using InCight Visualizer that highlighted vendors with redundant functionality. Firewalls were an obvious candidate for vendor consolidation as the intuitive visibility identified 8 different variants in use including Cisco, Check Point, Fortinet and F5. Collectively the InfoSec, IT Finance and IT teams will sunset providers resulting in significant savings over the next 3 years as 3 of the OEM’s are due for refresh.
Before CIO InCight, manual point in time work was done in silos by the offices of the CIO, CFO and CPO to aggregate and analyze vendor spend. Functional gaps with in-house financial systems combined with a large volume of transactions and purchasing via resellers made this a Herculean task. Trying to reconcile each silo's data and analysis was often a colossal waste of time using expensive resources.
NOTE: The Dell Technologies spend will be revised on November 1st to reflect the spin out of VMware .
In this video clip, NASDAQ discusses how CIO InCight facilitates collaboration between Finance, Sourcing, and IT.
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Global Head Customer Success
Transforming Data to InCight®