Sponsored By:
Hiten Parmar
Chief Procurement Officer
Produced By:
Battling the Tech Vendors: Optimising Licence Spend and Avoiding Audit Risk Market View Report
What are the major challenges you face dealing with an ever-increasing enterprise software and cloud estate?
I see both internal and market challenges. Internally, there is a need for maturity in understanding the value and revenue potential brought by enterprise software and cloud. They are no longer just boxes in a data center but actual assets for the business. This mindset shift needs to occur, and effective internal partnerships can expedite this process. On the supply side, it's important to seek alignment in values and beliefs with organizations. Revenue numbers become secondary to the alignment of business values, environmental values, social diversity values, and the type of people employed. By broadening the conversation and creating mutual value and alignment, we can achieve more effective outcomes and strengthen relationships.
Why is this challenge so complex for enterprises to solve? Is it because of the difficulty and time it takes to build relationships and partnerships?
Exactly. As a client or customer, you can't accurately forecast what tomorrow will bring due to volatile market and geopolitical conditions. The rapid nature of change and volatility make it challenging to have stability and unwind things when needed. That's why it's crucial to have partners who are equally responsible and responsive to navigate these complexities effectively.
Could you share what critical data you find necessary before engaging in meaningful negotiations with vendors?
Certainly, it's an interesting aspect. Before initiating any negotiation, I ensure that I am clear on what I need and what the business outcome will be. It's essential to understand if the supplier aligns with our company values and sees us as a partner rather than just a transaction or revenue stream. The key questions I ask myself are: What do I need? How quickly do I need it? And what business outcome does it provide that I can't create myself? By focusing on these aspects, I front-load my attention on the critical data needed for effective negotiations.
On the supply side, it's important to seek alignment in values and beliefs with organizations. Revenue numbers become secondary to the alignment of business values, environmental values, social diversity values, and the type of people employed.
In an ever-evolving business landscape, the availability of data may vary. Have you encountered situations where the necessary data for negotiations was not readily available? How do you handle such scenarios?
Absolutely, the availability of data can differ from business to business and deal to deal. I've learned that it's not solely dependent on the size or scale of the company but rather the cultural mindset. Even in some of the largest companies, I've witnessed a lack of the necessary data and mindset. On the other hand, I've worked with smaller companies that have embraced the modern procurement approach and provided the required data. In such situations, I prioritize fostering a partnership and work collaboratively to gather the necessary data. It's about finding the right fit with a supplier who understands our goals and operates with openness and trust.
Building on the concept of partnerships, what characteristics do you consider important in a provider or supplier, such as reseller, publisher, or cloud provider? Do these align with the characteristics you seek from clients?
Absolutely, the characteristics we look for in a provider or supplier align with the characteristics we seek from our clients. Collaboration, partnership, and a focus on business outcomes are key aspects. However, it's important to note that these characteristics may vary between different providers and publishers. It's not solely dependent on their size but rather their willingness to embrace modern procurement practices and drive innovation. While some publishers may resist change, others are proactive in adopting new approaches. The key is finding the right balance and fit that aligns with our business objectives.
Moving on to the topic of cloud services, they have gained significant traction in recent years. What are the major risks associated with the increasing adoption of cloud services, and how should businesses address them?
The adoption of cloud services brings several risk elements that businesses should be aware of. Firstly, there are regulatory concerns, such as knowing where data resides, protecting it, and handling potential breaches. Secondly, businesses need to be prepared and understand their cloud activity and associated risk profiles of their suppliers. Additionally, having a clear exit plan is crucial in case of any negative experiences, attacks, or regulatory changes. It's important to be able to pivot to another provider or technology without compromising business operations. Finally, there are control factors related to data security, privacy, and responsible business practices that should be considered. Having a comprehensive strategy addressing these risks ensures businesses can leverage the benefits of cloud services while managing potential challenges.
I prioritize fostering a partnership and work collaboratively to gather the necessary data. It's about finding the right fit with a supplier who understands our goals and operates with openness and trust.
Beazley Group is a global insurer, established in 1986, offering innovative insurance solutions worldwide. Headquartered in London, it provides tailored risk management services and a diverse range of insurance products for businesses and individuals. With expertise in property, casualty, marine, cyber, and professional liability coverage, Beazley is a trusted partner across industries.
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