A study conducted by 1E found that companies waste on average 37% of their software spend. They estimate software waste costs companies more than $30 BILLION annually! Related to software waste, here are more concerning facts about waste and IT investment:
- As a direct result of inefficient or ineffective communication, companies lose between $11,000 and $15,000 per employee per year. (CIO Insight)
- Inadequate or outdated technology leads 18 percent of employees to download unauthorized third-party apps without consulting IT, according to Ring Central, which can lead to costly network security issues.
- Nearly 70 percent of employees say they spend up to an hour per day navigating between apps, including email, office programs, file sharing and video conferencing.
- Employees report losing an average of 22 minutes per day dealing with technology-related problems. (Robert Half Technology survey)
How did we get here? Investment in technology is supposed to solve problems of inefficiency and poor communication, not create them. Yet here we are in 2021, and as IT budgets increase, so do these problems. Why?
- Underutilized software – Ever bought or subscribed to software that had huge potential to solve problems across your company but only implemented in one department? Chances are you are using 5 or more applications that could do more for you, and you probably based part of your justification for the investment on incremental value gained by using the product in multiple areas. Get back on track, find a sponsor and finish what you started.
- Too much software – I’ve heard it said that the IT’s biggest headaches are department managers with credit cards! SaaS software that can be purchased without much direction often duplicates functionality in software that’s already owned, but not everyone is aware of the product.
- Outdated software – We know the squeaky wheel gets greased, but that doesn’t mean the other wheels should be ignored. Make sure your old reliable software performers stay current on versions and that you are exploring use cases for other departments.
- Outdated infrastructure – Companies looking to save money by not upgrading key IT infrastructure may not be able to upgrade to current versions, limiting their access to important security updates as well as new features. Reduce the risk of cyber threats by keeping current.
When was the last time you conducted a software audit? If you’re like most companies, there are many opportunities for new value for your company to unlock simply by using the tools you already own to their full potential.