IT Software Case Study
Client Name/Size/Sector:
- Company Name Confidential
- $15+ Billion Annual Revenue
- 5K+ Employees
- Financial Services
Supplier:
- Salesforce
Engagement Type:
- Client engaged “The Negotiator Guru” (firm) to deliver IT Strategic Sourcing Advisory Services to a specific business unit.
Problem:
- While the client had a centralized procurement department (good thing), there was very little support from the IT department. In other words, the IT department operated independently and did not trust the client’s procurement department.
- The client did not have a centralized spend visibility tool
- Note: The client had SAP as their primary ERP system but was not able to accurately identify spend across regions as a result of poor reporting from the tool.
- The client’s IT spend is broken between global and regional budgets depending on the application.
Activities:
- Identified current state contracts across the globe
- Identified both influencing and decision-making stakeholders within IT and the Business Units that utilized similar software packages.
- Coordinated global business units and stakeholder meetings to discuss opportunity, gather feedback, and drive results.
- Utilized proprietary tools, templates, and techniques to assign global roles & responsibilities, action items, and negotiation tactics in the interest of speaking from one voice.
Results:
- Client Savings: $13 Million
- Negotiated the agreement down from $25 Million to $12 Million for a 3-year contract.
- Even though the firm was retained to focus only on a specific business unit, we identified cost savings opportunities that benefited multiple business units across the organization.
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From Phoenix to Tokyo, we turn impossible vendor demands into client victories.
Salesforce Engagement Success Story: Fortune 500 Company Achieves Remarkable Cost Savings
At The Negotiator Guru, we recently had the privilege of working with a prominent Fortune 500 company to facilitate their Salesforce renewal process. Our primary goal was to help them reduce their annual licensing costs without committing to significant future growth. Through our expertise and strategic approach, we achieved outstanding results, saving the client an impressive $1.84 million in direct costs and enabling them to avoid additional expenses of $5.1 million.
Our Approach:
To ensure a successful engagement, we implemented our proven 4-step IT Software Negotiation Process, tailored specifically to the client's Salesforce requirements:
Step 1) Discovery:
Collaborating closely with the global client team, we thoroughly examined their historical use of Salesforce and gained valuable insights into their future plans for the platform over the next 3-5 years. This comprehensive understanding formed the foundation for our negotiation strategy.
Step 2) Strategy:
We facilitated productive discussions involving all key stakeholders to establish a unified vision of the necessary licenses and add-ons required to meet the client's evolving needs. This alignment ensured that our negotiation efforts were targeted and focused, optimizing the outcome.
Step 3) Negotiate:
Utilizing our outcomes-based negotiation tactics, we engaged in open and constructive conversations with Salesforce. We effectively communicated the client's strategic objectives and explored how Salesforce could best support their business goals. This approach fostered a mutually beneficial dialogue and helped drive the negotiation towards a win-win solution.
Step 4) Contract Execution:
In collaboration with the client's Legal department, we diligently identified and mitigated contractual risks and open-ended obligations. By ensuring a clear and favorable agreement, we provided the client with a solid foundation for their ongoing partnership with Salesforce.
The Remarkable Results:
Our engagement delivered substantial benefits to the client, yielding cost savings of $1.84 million and cost avoidance of $5.1 million over the contract term. Beyond the financial gains, the negotiation process fostered executive-level engagement between the client and Salesforce, enhancing their relationship and paving the way for a stronger partnership. The outcome was a win-win solution that satisfied both parties and set the stage for continued success.At The Negotiator Guru, we take pride in our ability to deliver exceptional results for our clients. This success story exemplifies our commitment to achieving substantial cost savings while nurturing valuable business relationships. Contact us today to discover how our expertise can drive favorable outcomes for your Salesforce engagements and negotiations.
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