2 page Case Study - Posted 1/23/2008
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Non-Profit Organization Makes Savings, Wins New Donors with Software Asset Management
The Association of Muslim Professionals (AMP) is a Singapore based non-profit charity. Dependent on donations and sponsorship from the community, AMP needed total transparency in its financial dealings. It partnered with TecBiz to initiate a Software Asset Management (SAM) implementation. This helped AMP achieve full transparency in its IT spending, ensure licensing compliance, reduce expenditure, and improve donor confidence in the organization.
The Association of Muslim Professionals (AMP) is a registered non-profit charitable organization in Singapore with more than 2,000 members. It has 45 full time employees as well as a number of part-time employees, and 500 youth volunteers. As it charges no membership fees, AMP is reliant on donations, fundraising, and corporate sponsorship to support its core programs in education, human resource development, social development, and research.
AMP realized it was lacking an effective IT inventory management and software license tracking system. “We weren’t able to check compliance. We didn’t know where the software we purchased was going, or what it was deployed for. This meant we had no means of tracking our IT expenditure,” says Mohd Khalid Bin Bohari, Manager, Management of Information System, Corporate Services Division, Association of Muslim Professionals.
For example, AMP used Microsoft® Office Access™ 2003, which is included in Microsoft® Office XP Professional. But because of a lack of information on its software assets, AMP did not realize it had an additional 30 unused Office XP Professional licenses. As a result, the organization purchased 30 new Access 2002 licenses.
As an organization reliant on the support of the community, AMP also needed to be able to report accurately on its expenditure in all areas to encourage confidence and provide transparent accountability for its dollars spent.
||The greatest benefit achieved from implementing SAM is knowing that AMP has spent its money correctly. We are able to monitor, track and report our IT expenditure at any point in time.
||Mohd Khalid Bin Bohari, Manager, Management of Information System, Corporate Services Division, AMP
AMP called on professional services firm TecBiz, a specialist software license management consultant, to initiate a Software Asset Management (SAM) implementation. The project began in July 2007 and the SAM system was implemented in September 2007.
“The key objective of our engagement with AMP was to ensure software licensing compliance, control, and visibility of its IT inventory. We wanted to help AMP measure its IT spend more effectively and efficiently, and to help them both manage and optimize their IT to save money,” explains Kelvin Low, Director, TecBiz.
TecBiz conducted a review of the existing hardware and software by performing a reconciliation, which matched software licenses against deployment. The detailed report included hardware and software inventory and software licenses, which provided an accurate assessment of the compliance status.
“TecBiz examined what we had and were using, where we were over and under-licensed, and what we needed to do to comply or save money,” says Mohd Khalid. For example, the SAM consultancy found that there were more software licenses than there was hardware. AMP was over-licensed on Microsoft® Office Visio® 2000, at an estimated cost of S$2,000 (U.S.$1,388). “The SAM consultancy found we were spending a great deal on IT, and that our software licenses weren’t in keeping with our hardware inventory,” confirms Mohd Khalid.
TecBiz then installed its Solve SAM web-based SAM tool to allow AMP to build and maintain a comprehensive hardware and software inventory.
“TecBiz enabled us to see just how much we were spending on IT, and where the wastage was. They were able to demonstrate clearly the value of SAM in an organization, especially in a non-profit organization where we rely heavily on the confidence and support of the community to fund our programs,” says Mohd Khalid.
The SAM program offers AMP considerable ongoing cost savings by avoiding unnecessary purchases, reducing administration and boosting donator confidence. “Due to our SAM program, we are now aware of the additional licenses we can use when we purchase new hardware. We estimate this alone will save us at least S$24,000 (U.S.$16,653),” explains Mohd Khalid. “The greatest benefit from SAM is knowing that AMP has spent its money correctly. We are able to monitor, track and report our IT expenditure at any point in time.”
Reduced IT Administration
IT administrator time is reduced with accurate software asset management. Mohd Khalid says, “We used to hire eight part-time staff for year-end audits. Now with the SAM tool, this is no longer required.” Previously AMP was spending five to six days preparing an IT report for the monthly managerial meeting. Now it takes a day and a half. “The information available is very systematic and at a far deeper level than previously. I can now quickly identify the state of health of specific machines,” says Mohd Khalid.
AMP now has the necessary tools and framework to ensure compliance with the law in all areas of its business and is better able to justify any IT expenditure to its stakeholders. “We simply cannot afford to be non-compliant. SAM enables us to track our IT assets precisely and detailed reporting information can be generated quickly to support expenditure,” says Mohd Khalid.
Improved Financial Transparency
Now with the SAM program in place, managers can better understand the value of any IT spend. “Once we implemented the SAM program, the management board could easily see value in budget allocations and IT infrastructure investments, improved corporate governance, and enhanced organizational image. This provides a good case for donations because now our spending is completely transparent,” says Mohd Khalid.
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Document published January 2008