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Proving The Business Value Of LeanIX With IDC

Posted by Matthew Grant on October 17, 2023

roving The Business Value Of LeanIX With IDC

LeanIX EAM and LeanIX SMP play a critical role in enterprise architecture and SaaS management at over 1000 companies. Based on conversations with our customers, IDC has written a report clearly quantifying the value LeanIX delivers.

The International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. We commissioned IDC to quantify the return on investment companies see, on average, when employing LeanIX’s software.

IDC interviewed 10 companies using LeanIX EAM, LeanIX SMP, or both solutions. The companies, from the USA, Germany, Australia, and Ireland, represented a range of industries, including software, education, financial services, media, distribution, security, and retail.

To see what IDC discovered, read the report:

DOWNLOAD: IDC White Paper - The Business Value Of LeanIX

Below you will find some of the report highlights.

LeanIX By The Numbers

IDC found that an investment in LeanIX pays real dividends and that the time to value is remarkably short:

  • Average annual benefits per organization: USD 1.1 million
  • Average annual benefit per LeanIX managed application: USD 2,670
  • Standard three-year return on investment: 386%
  • Payback period: 5 months

IDC was also able to determine the average increase in productivity and efficiency for different business teams after implementing LeanIX:

  • Finance: 51% greater productivity
  • IT: 48% greater efficiency
  • Enterprise architecture: 35% greater efficiency
  • Security: 33% greater efficiency
  • Procurement: 23% greater productivity

How LeanIX Does It

The business value identified by IDC stemmed from the use of LeanIX EAM and LeanIX SMP.

LeanIX EAM

Our Enterprise Architecture Management (EAM) solution provides a complete, SaaS-based toolset for enterprise architects. With EAM, you can create a real-time overview of your business capabilities and the IT landscape supporting them. This overview facilitates effective application portfolio management, technology risk management, and business transformation management.

EAM allows you to discover and import IT landscape data, augment that data through surveys of business owners from across the enterprise, and then visualize it in a variety of ways to support strategic decision making.

LeanIX EAM enables:

  • enhanced collaboration between IT and business teams
  • data-driven application portfolio management
  • granular insight into your entire enterprise architecture
  • continuous business transformation, including application modernization, cloud migration, and ERP transformation
  • targeted cost reduction
  • enhanced security and regulatory compliance

LeanIX SMP

LeanIX SMP (SaaS Management Platform) allows you to create a complete inventory of all SaaS applications in use across your business. SMP has over 130 out-of-the-box integrations to enabling everything from the SaaS discovery (finding applications you might not now you have) to usage tracking and contract management.

LeanIX SMP enables you to:

  • identify duplicate SaaS licenses and redundant contracts
  • compare usage to spend in order to right-size your SaaS portfolio
  • manage contract lifecycles and renewals proactively
  • negotiate better SaaS contracts
  • ensure regulatory compliance

What Users Say About The Benefits of LeanIX

IDC conducted in-depth interviews with 10 of our customers. These interviews revealed common benefits enjoyed by LeanIX users. These benefits include:

Improved Enterprise Architecture Management

From deeper insights into the maturity and morphology of your IT landscape to better intelligence for strategic decisions, our customers describe LeanIX as a tool used to develop and refine their enterprise architecture.

As an education organization who uses our EAM explained:

“My organization has gained clarity and transparency from the deployment of LeanIX. We have a better understanding of the technology that is out there, and who is managing it, and the cost and the risks associated with that.”

Cost Reduction

Our customers say LeanIX empowers them to cut back on legacy applications as well as improve financial planning and budgeting around application spend. In addition, by supporting proactive SaaS contract management, LeanIX ensures ongoing spend optimization.

A LeanIX SMP customer in the software industry told IDC:

“Our organization was looking for something to help aggregate all the SaaS applications that we use. We weren’t tracking them from a central place. LeanIX gave us the ability to track contract renewals and reduce spend by contacting our SaaS provider prior to contract renewal and working on prices.”

Application Rationalization

Our users find that mapping their application portfolio and resource expenditure to their business capabilities immediately highlights points of overspend. This enables the rationalization of the application portfolio to better fit the needs of the business.

Another software vendor using our SMP explained:

“LeanIX enabled our organization to have more functional applications because we identified services that were redundant and used by two different teams. We identified the better service, eliminated the redundancy, and migrated the other team to the better performing application.”

Improved Compliance

Gaining better oversight of their IT landscape improved our customers' ability to enforce policies and comply with regulations, they report. Users also told us that this oversight allowed them to better secure their systems and their data.

As was explained by a retailer that subscribes to both LeanIX EAM and SMP:

“LeanIX has had a huge impact on security. The technology request process is an all-encompassing process: it forces a check with security, data privacy, and legal. Security will not recognize software that is not in LeanIX, they will call it non-compliant immediately, refuse to service it, and insist that it be registered. They rely heavily on that auditing and checking.”

Enhanced Productivity

One less-obvious benefit from the adoption of LeanIX technology was a reported improvement in business productivity. These productivity gains were felt both by departments who need to access IT data as well as end users.

A financial services provider using EAM told IDC:

“Our client- facing practices benefit from having just one place to look for the inventory of digital assets. Prior to this, I think we had about twelve different lists of things we have rationalized, and now we have one list.“

Explore The Value Of LeanIX

This is just a snapshot of what our customers have achieved with LeanIX. To learn more, and see what LeanIX could do for you, download the full report:

DOWNLOAD: IDC White Paper - The Business Value Of LeanIX

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