More and more organizations are struggling with high work pressure, a shortage of personnel due to the tight labour market or are in financially difficult times due to high inflation combined with a financial crisis. It is complex for organizations to grasp these developments and their consequences while remaining innovative and relevant in the market.
When we look at the economic environment and market in which an organization operates, it is constantly changing as factors, trends, and developments change daily. What may be favorable for the industry today and bring positive changes within your organization, may hinder progress tomorrow or impact the activities and success of the organization.
Source: Gartner, 2023
In the illustration to the left a picture of the 6 macro-level factors reshaping business.
These external factors and trends, known as macro-developments, relate to broader changes in society, the economy, and the market. It is not new that understanding these macro-developments is essential for organizations to scale, innovate, and grow in a rapidly changing business environment.
But then the question arises: what can we do about it, how future-proof is our organization for these developments, and what measures are currently being taken to address these three developments?
This is where IT Asset Management (ITAM) emerges as a valuable tool. ITAM is important for organizations at the organizational level but can also help effectively respond to and adapt to changes in your (macro) environment.
In this blog, I would like to delve deeper into the relationship between ITAM and the aforementioned three developments: high workload and labour shortages, bankruptcy, and financial crisis, and show you how ITAM can be an indispensable component for making your organization resilient.
High workload and staff shortage
Perhaps you are already experiencing it within your team or in other departments, how challenging it is to attract and retain new talents for your organization due to high work pressure. We are currently living in a period characterized by a growing labor shortage in the job market. Organizations are struggling to attract and retain qualified IT professionals, which directly impacts the performance and productivity of organizations.
This is where IT Asset Management comes into play. By effectively implementing ITAM, organizations can streamline and automate their IT infrastructure, thereby reducing the workload on staff. Automated processes allow employees to focus on more strategic tasks rather than daily IT asset management. This leads to higher efficiency and enables achieving more with fewer personnel.
1. Automation: ITAM can help automate repetitive tasks such as software deployment, license management, and hardware inventory. This allows IT professionals to focus on more complex tasks and strategic initiatives, rather than spending time on time-consuming manual processes.
2. Capacity Planning: With ITAM, available IT capacity can be accurately planned based on organizational needs. This ensures optimal utilization of IT assets and prevents overloading or underutilization of staff.
3.Skills Mapping: By managing IT assets and associated staff skills, ITAM can help identify gaps in the knowledge and qualifications of the team. This enables targeted training and development programs to complement and improve staff skills.
Impending bankruptcies due to overall increased costs:
Organizations are facing increasing financial pressure due to rising costs on various fronts. Effectively managing IT assets can play a crucial role in this regard. Through IT Asset Management, organizations can gain insight into their IT infrastructure and associated costs. This insight enables them to identify and eliminate unnecessary expenses, such as redundant software licenses or outdated hardware. By achieving cost savings and better managing IT expenditures, organizations can strengthen their financial position and prevent bankruptcies. ITAM can be a proactive starting point for your organization in gaining control over unnecessary IT costs.
1. Software license management: ITAM provides insight into the usage of software licenses within the organization. By identifying excess or unused licenses, organizations can save money by optimizing the number of licenses and avoiding unnecessary costs.
2. Contract management: ITAM helps manage and track contracts with vendors and service providers. This enables organizations to negotiate contract terms and costs better, handle renewals on time, and avoid unnecessary expenses.
3. Outdated equipment: By identifying outdated or underperforming hardware, ITAM can assist in planning timely upgrades or replacements. This allows organizations to prevent unexpected costs due to failures or expensive repairs.
Saving costs during a financial crisis?
As a professional, you know better than anyone else how important it is to control costs and manage budgets accurately.
Whether before, during, or after a period of economic uncertainty and a possible financial crisis, organizations should strengthen their financial position and mitigate risks. IT Asset Management can help in this regard by better controlling and planning the costs of IT resources. By monitoring licenses, optimizing software usage, and avoiding unnecessary expenses, organizations can manage their budgets accurately and ensure financial stability. Moreover, ITAM can also help identify vulnerabilities in the security of IT resources, enabling organizations to better protect themselves against cyber threats, which often increase during a financial crisis.
In the table below, the prediction by Gartner; it shows that despite all macro level developments, the cost of IT is rising substantially therefore it is important to prioritize ITAM!
Source: Gartner, 2023
1. Cost optimization: ITAM provides insight into the total lifecycle costs of IT resources, including acquisition, maintenance, and depreciation. This enables organizations to plan budgets accurately and avoid unnecessary expenditures, making them more financially resilient in times of crisis.
2. Risk management: By managing software updates, security patches, and license compliance, ITAM can help reduce security risks. This minimizes the chance of costly data breaches or breaches that can cause financial damage.
3. Collaboration with vendors: ITAM facilitates streamlined communication with IT vendors. This can lead to better pricing agreements, favorable payment terms, and possible discounts, providing financial relief during a crisis.
Summary: How does my organization stay future-proof?
- IT Asset Management not only impacts the organizational level but also plays a significant role in macroeconomic developments.
- During a growing labor shortage, ITAM helps reduce workload through automation, capacity planning, and skills mapping.
- Impending bankruptcies due to cost increases can be prevented with ITAM through cost optimization, software license management, contract management, and avoiding outdated equipment.
- In times of a financial crisis, ITAM can help with cost control, risk management, and collaboration with vendors.
Because industries and macro environments are constantly evolving, organizations face not only new challenges but also new opportunities. Challenges such as reducing labor shortages, preventing bankruptcies, and controlling and ensuring the costs and financial stability of your organization can be simplified. That is if you know how to apply IT Asset Management correctly.
With a structured approach, it enables organizations to optimize IT spending, reduce inefficiencies, and maximize the value of IT investments. This allows for many benefits to be derived from leveraging IT-as-a-Service while effectively managing IT costs and complexity.
So ask yourself once again: How future-proof is your organization’s strategy against environmental developments, and what measures are being taken to address them?
Interested? Let’s get in touch!
Want to learn more about how ITAM can further support in future-proofing your organization? Then let’s get in touch! We would love to work with you to see where your what opportunities and strategies could fit your organization.
So feel free to book an appointment with our specialists at info@itamsolutions.nl or fill out the contact form below.
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