Who owns the SaaS/software budget in your company? It is a delicate topic, responsibility seems to be blurred between departments. The CFO cares about cost but doesn’t use half the tools, the CTO is no longer the gatekeeper of new purchases and the COO either has full responsibility or none at all.
To better understand this paradigm, we spoke with nearly a hundred team leaders across Australia to discover how they managed everything SaaS related. Here’s what we learnt:
1. 42% of the community stated that there are no formal processes in place to manage onboarding of new SaaS tools
In growing companies, team leaders are given full autonomy to make decisions related to their department. While for a “start-up”, this isn’t a huge problem but as the company scales it can quickly get out of control. One company we spoke with used two CRM’s and three project management tools across the company. If they simply centralised the purchasing process, they would have avoided this error and saved thousands in the process.
2. 50% had the freedom to try new products for productivity and collaboration without business approval
The ease of adoption for new SaaS empowers employees to try new tools. The downside to this kind of autonomy is people are more likely to purchase on personal or company credit cards. This becomes a nightmare for the CFO and CTO as they try to untangle this from a risk and financial perspective.
3. The CFO manages the budget, but they don’t use the tools
The CFO has arguably one of the most challenging jobs when it comes to SaaS management. They are required to manage tools they don’t use, can’t see and more often than not, don’t have visibility over. It’s comparable to being asked to make decisions with only 20% of the information. Teams will naturally protect the tools they use “just in case” and ultimately it’s very difficult for the CFO to challenge this without usage (which isn’t easy to capture).... especially when an average company will use 50+ tools.
In the scheme of things, SaaS is still a relatively new concept and we’re all still working out the best way to manage this. At Hudled, we’re thinking deeply about this issue to try and empower team leaders across the business by giving them greater visibility on usage and engagement with the SaaS they currently pay for.
If you’re curious to see how Hudled could help consolidate some of the challenges you’re facing with SaaS, please get in touch.