Salesforce Engagement Overview #4:
A healthcare organization reached out to TNG once they became aware that Salesforce was auditing their license utilization. The organization’s C-suite requested to work directly with TNG’s Founder and Senior Partner, Dan Kelly. Mr. Kelly agreed and led the engagement with the support of his global team.
The client’s objectives were to not only eliminate any immediate audit risk but also to decrease their cost basis. This engagement delivered $3.3M in cost savings and $8.6M in cost avoidance for the client.
We utilized our 4-step IT Software Negotiation Process to drive the following key activities:
- Step 1) Discovery – We quickly stood up a core team at the client who acted as a triage and steering team in the interest of identifying the facts behind any potential license abuse. We, then, conducted a deep dive assessment of how the client has grown into, and out of, the platform over the last 5 years.
- Step 2) Strategy – We identified, coordinated, and executed multiple workstreams focused on identifying how the organization would use Salesforce over the next 3-5 years. As a result of our Right Size/Right Price methodology, we quickly identified opportunities.
- Step 3) Negotiate – At the request of the client, we directly engaged with Salesforce to mitigate audit risk and optimize their environment. Since we work with Salesforce on a daily basis, we were able to quickly negotiate a resolution to the audit risk while also rewriting their current contract.
- Step 4) Contract Execution - We worked directly with the client’s Legal Team to advise and mitigate contractual risk while expanding flexibility.
The Results (not comprehensive)
- $3.3M in cost savings and $8.6M in cost avoidance
- Commercially and contractually mitigated a significant audit
- Right Sized and Right Priced (via negotiation) the client’s contract to deliver immediate P&L impact while improving the supplier relationship overall
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