Software investments failing to add up for finance directors

That is among key findings of research released today (23 November 2011) by the Business Software Alliance (BSA), which suggests that only 9% of finance directs are very confident that their software is correctly deployed. The research indicates that 79% of manufacturers' finance directors are responsible for software licensing in their organisations, and almost all of them (98%) agree that enterprise software is important to the running of their businesses. However, just 2% feel they are getting the best out of their software investments, while almost three quarters (70%) are unhappy with the way it is being managed. However, in spite of this concern, the vast majority of those surveyed (81%) say their software spend has increased in the past five years, making up 6—10% of capital expenditure for 68% of manufacturing organisations. The survey also reveals something of a vicious circle: as manufacturers feel the pinch of recession, a staggering 81% cite funding as a major barrier to managing their software assets more closely, and hence gaining the value they had expected. Just as alarming, only 17% of finance directors think that IP (intellectual property) is valued within their company, which Julian Swan, director of compliance marketing at BSA believes might explain why almost 30% of those surveyed admit that illegal software could be in use in their organisation. "In order to get the most out of their investments, finance directors need to take a longer-term view about managing their software assets," warns Swan. "Good planning will help mitigate the risks associated with unlicensed software use, such as operational continuity problems, and financial risks – all of which are potentially threatening to manufacturing businesses," he continues. "Importantly, managing software can also save money by helping companies from over-licensing [purchasing licenses they do not need] and making sure that employees have the correct software tools to do their jobs effectively." And Richard Anning, head of the Institute of Chartered Accountants in England and Wales IT Faculty, adds: "Good business software is a fundamental aspect of how businesses operate in the 21st Ccentury. Our advice to our members is always to keep up to date with software licensing, undertaking an annual audit of software held in the organisation, if required. "It is also important to ensure you are not compromised by changing circumstances, such as test, acceptance and live environments, and that your business continuity plans are covered."