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Why Vendor Sprawl Is An Important Business Issue?

Digitization and digital transformation have become the latest trend among all businesses. Therefore, it is unsurprising that a survey reported that an average enterprise-sized company uses thousands of applications in different departments. It ultimately gives birth to vendor sprawl. When businesses use too many applications and software, instead of creating efficiency, it creates inefficiency within it, resulting in vendor sprawling. In other words, duplication of apps and software takes place, which consumes a lot of the company’s resources and money. 

The Issue Of Vendor Sprawl In Businesses

Vendor sprawling occurs when businesses start implementing new security solutions on the go instead of using a cohesive solution. The individual solution fixes the problem of a specific task. Also, most often, these solutions are collected from numerous vendors. In such a scenario, the organization of the different aspects of the business becomes challenging. Here is why vendor sprawl is a critical business issue. 

Financial Burden 

The more apps and software you use in your business, the more you have to bear the financial expense of it. Furthermore, if companies do not monitor these services, they might pay for services they do not use. Also, it becomes essential to note the value of money in such a condition. It is better to go for a complete package for handling an entire department instead of buying various tools to manage a single task.

Lack Of Transparency 

When different team members use different apps or software, it automatically results in a lack of visibility, creating operational issues. For example, suppose a customer support representative uses GBWhatsApp to connect to a user. In that case, one might not know the progress in the communication with the customer. On the other hand, maintaining contact from a single platform ensures transparency which is lacking when one uses multiple apps and software. Furthermore, it also reduces the chances of risk of a data breach. 

High Misconfiguration 

The greater the number of deployed solutions, the greater the risk of managing the solutions. Slight neglect can increase the misconfiguration of software and can put the entire system in a vulnerable position. Also, it makes it difficult to fix the solution, as the security department will have to look at all the tools the company uses to identify the problem, giving time to the cyber attackers to create a considerable amount of damage. 

Increased Workload 

Different tools have different learning curves and functionality. Therefore, introducing any new app or service requires the training of the employees. Training for a single program sounds fine. However, repeated exercise for introducing new solutions now and then increases the team members’ workload. 

Focus On Vendor Consolidation 

Vendor consolidation can fix the problem of vendor sprawl. However, collaboration is the key to the same. If communication between departments and team members is missing, solutions and systems are often replicated, resulting in redundancies. In such a scenario, collaboration to ensure communication between the various stakeholders is essential.

Vendor consolidation first reduces the cost that the businesses spend on different solutions. Secondly, it improves efficiency within the firm. For example, instead of investing in four additional software, it is wise to invest in one that offers all four solutions. Finally, it also reduces friction and increases employee productivity. 

Any company that wants to focus on vendor consolidation should follow four steps. First, the business should prepare a list of all the applications they use, including the tools used in all the different departments. Secondly, it is vital to conduct an audit to analyze which tools are working and which are not. It will help identify the business’s redundant applications along with duplicate tools to perform the same task. Then, one must devise an all-in-one solution to reduce the number of applications used. Regular check-ins are the final step of vendor consolidation. 

Simple And Effective Solution 

Vendor consolidation is an effective solution that keeps business processes simple. While diving into vendor consolidation, looking at a product that provides one solution and brings out the best ROI in terms of money and time is crucial. The key should be to centralize as many solutions as possible. Using new applications is vital to bring in efficiency; however, to ensure that the efficiency remains, it is essential to use only the applications which bring actual value within the firm. 

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