Is Software Procurement Costing Too Much?
How to Invest in Software Wisely
In 2016, a software company reported that US companies collective was $28B on unused software investments, about 38% of all software purchases. Based on recent reports, the amount of investment wasted in software purchases has not improved.
PYMNTS.com recently interviewed Ryan Bonnici, the Chief Marketing Officer at G2 Crowd. G2 Crowd is a unique review platform for enterprise business grade software. Bonnici pointed out a few of the purchasing decisions that result in wasted spend.
- Two different departments purchase two different software solutions that solve the same problem.
- Two different departments need the same solution. One upgrades to the premium version of the software while the other department relies on a less powerful, free version because they don’t know that they have paid access to the better version.
Communication is a clear issue for both of these scenarios.
Bonnici went on to explain how recent funding will help them to provide a spend management tool that will help companies get better visibility into all the software they spend on. The solution will also allow software providers to bundle services with other software solutions and allow users to add more corporate users from one location.
Understanding the software you purchase and how it will actually be used is vital in the decision-making process of software procurement. You need to know not only what the software can do, but what you need the software to do. Custom purchasing software, for example, should be fit to your needs – rather than your needs to the software.