Optimal Market Data Demand Management
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Getting to optimal demand management requires several things.
It starts with an understanding of the workflow:
- The process starts with an internal client request.
- In order to provide the expected response, a catalogue of available services based on a current and accurate inventory is required.
- The requestor needs to know the services they are currently subscribed to, along with contractual terms. They also need information on other available services, contractual terms and costs.
- Once the requestor decides on any new services, or cancellations, they need to know when any savings will be realized in accordance with contractual terms.
- Once a requestor orders a service, it needs to be approved. Good governance demands strong oversight to ensure the service is within budget, is appropriate and in profile. The service needs to be either covered by the existing contract or ordered. Perhaps there’s a less expensive option available that meets the requestor’s need?
- The process for ordering services should be as streamlined and efficient as possible. Can an approved order be sent directly to the vendor? Can phone calls and email be minimized?
- Finally, there needs to be transparency in the ordering process so everyone in the approval chain is aware of the status of each order.
Surveys are another highly effective way to collect feedback from consumers on service demand.
Surveys provide confirmation that a consumer would like to be included in a renewal. They also capture cancellation orders, which can drive significant savings. This becomes even more powerful when aligned with usage data, giving the consumer insight into whether the level of usage is worth the price tag.
Surveys can be leveraged in two ways, and it depends on the resources and workflows of each client.
1: First is the broad certification exercise. This is when the full spend inventory is distributed firm-wide and consumers are asked to ‘keep or cancel’ all their spend. Handling the responses can present a heavy administrative burden as a high volume of cancellation requests can be received. The benefit is that there are significant savings to be realized each time this exercise is performed.
2: The alternative is more operational in nature as consumers are surveyed in advance of each renewal. The best practice in this approach starts with the contract renewal notification, when a survey is generated for the specific services under contract. This simplifies the survey, making it easier to respond while providing timelier answers. It’s a more agile process that avoids a major project, since the survey is built into the renewal process.
Both approaches allow firms to ensure that renewals are only provided for consumers that need the services, eliminating over licensing.