Alsbridge PowerPoint Template & Themesig.org/docs2/WS03_Making_Lemonade_Turning_a_Software...optimization, analytics and mobility. Jeff has a deep understanding of global markets,

Turning a Software Audit into a Positive

Experience

Making Lemonade:

Boeing

Lawrence KaneSenior Leader, IT Infrastructure Strategy & Sourcing

Alsbridge

Jeff SeabloomManaging Director

www.sig.org/eval

How to Make Lemonade: Turning a Software Audit

into a Positive Experience

Lawrence Kane, Boeing

Jeff Seabloom, Alsbridge

© 2015 Alsbridge Proprietary & Confidential

3

Agenda

Why software audits are becoming more common

Triggers and red flags vendors use to identify audit targets

Software audit vulnerability and risk factors

Keys to an effective asset management* and audit response strategy

Benefits of asset management – whether or not you’re audited

Conclusion/Takeaways

* “Asset Management” here refers to software and to people, tools, processes and practices


4

About Boeing

The world’s leading aerospace company

Provides products and support services to customers

in 150 countries

Designs and manufactures commercial and military

aircraft, rotorcraft, electronic and defense systems,

missiles, satellites, launch vehicles, and advanced

information and communication systems

Headquartered in Chicago, Boeing employs

more than 170,000 people across the

United States and in 70 countries

More than 140,000 of our people hold college

degrees, including nearly 35,000 advanced degrees,

in virtually every business and technical field


5

The Alsbridge Difference

Pragmatic focus on expense reduction, not general management consulting

Independent—Alsbridge does not offer operation of services we source

“No divorce” track record for all agreements we have advised upon

Data-driven decisions using the industry’s most complete database

Engagements address over $5 billion in annual market spend

Chosen to World’s Best Outsourcing Advisors list by IAOP for past five years

More than 200 professionals with an average of 20 years industry experience

The Right People

Largest Provider Data

Integrated Services

PLAN

Transformation

Sourcing

Strategy

EXECUTE

Change

Management

Selection &

Negotiation

GOVERN

Vendor

Management

IT Asset

Management

ASSESS

BenchmarksOpportunity

Assessments

COST

REDUCTION

RISK

MITIGATION

BUSINESS

ENABLEMENT


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About the presenters

Lawrence Kane is responsible for IT Infrastructure Strategy, Sourcing,

and Asset Management execution at Boeing. He recently completed a

multi-year assignment to improve IT SW Asset Management capabilities

at Boeing. In addition, established the sourcing office, hired and

developed a high-performance team and saved more than $2.1B by

architecting the IT infrastructure sourcing strategy, designing the

proposal evaluation process, executing RFPs, negotiating with

providers and benchmarking the effectiveness of resultant deals. He is

also the best-selling author of a dozen books.

Alsbridge Managing Director Jeff Seabloom has over 36 years of

executive experience as an executive, entrepreneur and advisor

across various industries. His areas of expertise include ERP

systems and supply chain integration, business intelligence,

optimization, analytics and mobility. Jeff has a deep understanding of

global markets, both direct and indirect models for sales and

services. Jeff has held numerous executive positions including

Oracle, i2 and HP. He is active on several Boards and a Board

Partner for Pathena, a European Investment Fund.


7

Software audits are becoming more common

Source: Express Metrics


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Software audits are becoming more common

Source: Express Metrics


9

Red flags vendors use to identify audit targets*

Involvement in a merger/acquisition/divestiture

Virtualization and Cloud/IaaS/PaaS deployment

Organizational growth – without additional software purchase

Attrition of licensing expertise

Uncertainty regarding licensing position

* Source: Information Week 9/14


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Software audit vulnerability and risk factors

Lack of asset management governance structure and skilled people to run it

Sourcing, procurement and asset management functions don’t communicate

Discovery tool limitations

Pirating/hacking/cracking

Secure environments that preclude visibility (e.g., gov’t contractors)

Independent groups that work in isolation

Disgruntled employees who blow the whistle – Business Software Alliance

Illegal copies – users sloppy or don’t care

Change of supplier account teams

Lack of a CMDB

Bottom line: enterprises are at risk and preparedness is imperative


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Processes

Implement process discipline that proactively

prevents escapes

Ensure software is purchased through right

channels

Integrate sourcing, procurement and asset

management functions

• Define governance strategy

• Optimize organization and operating structure

Develop a focused sourcing strategy

• Use every event to get better

• Define what to do in-house vs. what to buy

Keys to an effective asset management

and audit response strategy


12


and audit response strategy

Tools

Acquire and deploy robust tools that fit infrastructure

• No one-size-fits-all answer

• Consider size, scope, complexity, and risk

Tool requirements

• Discovery

• Definitive media library

• Entitlement and compliance reporting

Consider phased tool deployment and data on-boarding

• Assure data quality

• Process control assessments

• Continuous improvement


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and audit response strategyPeople

Assign the right people

• Core team with responsibility, accountability and authority to implement SW asset management

• Assure knowledge, skill, ability and interest

• Specialists are expensive, outsource as necessary to augment

Focus on stakeholder education

• Communicate importance, process, and accountability

• Provide specialized training to “admin rights” users

• Don’t forget suppliers/contractors

• Millennials may need focused training


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True-up by audit Manual record-keeping and

true ups

Limited IT uCMDB with

discovery tools in place

IT uCMDB with robust

discovery and tracking tools

Robust enterprise uCMDB

with advanced analytics

Few people responsible;

limited organization

Asset Mgrs assigned,

coordinated efforts

Asset Mgrs and Product Mgrs

assigned, coordinated efforts

Strong coordination; managed

virtual organization

Structured enterprise-wide

organization w/ dedicated staff

No rigorous compliance

process

Compliance based on

representative sample

Compliance with asset needs

known; forecasting limited

Compliance with asset needs

forecasting and optimization

Proactive compliance and

utilization

1

2

3

4

5

AppliedIT Today: Basic capabilities,

pockets of excellence, few

processes, tools, and

standards

ExploredNo sustained

capabilities

AdoptedIT Competency: Department

standards, basic processes,

basic integration, utility oriented

ManagedIT Proficiency: Standard

processes, cross-

organizational integration,

measured impact, service

oriented

AgileBeyond IT: supporting

The company as a

competitive advantage:

Integrated enterprise

capabilities, committed

audit and

improvement, business

oriented

Va

lue

Re

ce

ive

d

Capability

Inve

stm

en

t to

Im

ple

me

nt

Industry Maturity

Model

18 – 24 months 18 – 24 months

1 2 3 4 5

18 – 24 months 18 – 24 months


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Benefits of asset management –

whether or not you’re audited

Reduced audit risk – and more effective response to audits

Identify opportunities to utilize licenses more effectively

Reduced software costs through harvesting and redeployment

Knowledge and data to negotiate more favorable contracts

Align software roadmaps with sourcing strategy and technical

architecture

Define asset management sourcing priorities – what to keep,

what to let go


16

Lessons Learned/Takeaways

A software audit is a significant risk that needs to be

taken seriously

Effective asset management enhances the ability to

effectively respond to a software audit

Asset management delivers a wide range of operational

benefits


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Thank you!Lawrence Kane

Senior Leader

ITI Strategy, Sourcing, & Asset Mgmt.

The Boeing Company

Phone: (425) 865-7516

E-Mail: [email protected]

Jeff Seabloom

Managing Director

Alsbridge

Phone: (612) 940 9770

E-Mail: [email protected]

mailto:[email protected]


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Workshop # 3

Making Lemonade: Turning a Software Audit into a Positive

Experience

Speakers:

www.sig.org/eval

Lawrence KaneThe Boeing Company(425) [email protected]

Jeff SeabloomAlsbridge(612) 940 9770 [email protected]



Documents

Alsbridge PowerPoint Template & Themesig.org/docs2/WS03_Making_Lemonade_Turning_a_Software...optimization, analytics and mobility. Jeff has a deep understanding of global markets,