Building A Business Case For ITAM In 2025 – Insights from Netflix’s Manager of IT Sourcing & Technology

In today’s rapidly evolving IT landscape, effectively managing IT assets to optimize costs while maximizing value cannot be overstated. The business case for ITAM is highlighted by insights from my online conversation in October with Kim Master, Senior Manager of IT Sourcing and Technology at Netflix. (Full disclosure: Netflix is a client of Boerger Consulting.)?

Why ITAM? The High Cost of "Not Knowing”

Knowing what you have is the first step to understanding how best to utilize it. Kim discovered the pivotal role of ITAM in transforming operational efficiency. Like navigating through a house renovation chaos seeking clarity, ITAM brings about a sense of order through organization and alignment of IT assets—a foundation upon which Netflix has built its robust IT structure. This analogy sets the stage for discussing ITAM’s crucial role in cost optimization and strategic planning.

ITAM Is An Investment With Direct Returns

I often say, “ITAM doesn’t merely cost—it saves money,” a perspective shared by Kim. Viewing ITAM not as an expense, but rather as a valuable investment, she highlights its potential for yielding substantial returns through optimized IT resource utilization, heightened security measures, and more efficient procurement activities.?

?“Without high-quality, reliable data, effective IT Asset Management is unachievable. A substantial portion of my efforts was directed towards engaging with stakeholders and leadership to underscore ITAM’s role as a pivotal data function. Our aim is to continuously improve the data quality surrounding our assets.”

Kim’s implementation of ITAM at Netflix has yielded impressive results, with year-to-date ROI already surpassing the implementation costs.

Modification with Quantitative Proof

To further underscore the importance of ITAM as a savings generator, evidence from industry benchmarks supports this claim. For instance, Gartner reports that organizations implementing comprehensive ITAM practices can expect a 30% reduction in IT costs within the first year of adoption and further savings in the subsequent years. This aligns with Kim’s approach at Netflix, where strategic ITAM integration facilitated significant cost efficiency, minimizing unnecessary expenditure and maximizing return on investment in technology assets.

The Business Case for ITAM: Proven at Netflix

• Strategic Alignment and Cost Savings: Kim illustrated how aligning ITAM with business objectives led to significant cost savings and efficiency gains at Netflix. By focusing on the life cycle of IT assets from procurement through disposal, Netflix was able to ensure optimal allocation and use of resources, directly impacting the bottom line.
• Risk Mitigation: Highlighting the security aspect, Kim underscores the value of ITAM in mitigating risks. “Understanding what assets we have and how they are being used is paramount in protecting them,” she states, reflecting on ITAM’s role in enhancing Netflix’s cybersecurity posture.
• Enhanced Decision-Making: With ITAM, decision-makers at Netflix are equipped with accurate, real-time data, enabling informed choices regarding IT investments. Kim shares instances where ITAM provided critical insights into technology deployment and scaling, fostering a culture of data-driven decision-making.

Implementing ITAM: Learnings from Netflix

Reflecting on the implementation journey, Kim shared some key learnings:

• Start with Data: The cornerstone of effective ITAM is reliable data. Netflix’s focus on consolidating and validating IT asset data laid the groundwork for subsequent optimization efforts.
• Emphasize Stakeholder Engagement: ITAM is not solely an IT function. Engaging cross-functional teams early and often was instrumental in gaining buy-in and ensuring the program’s success.
• Select the Right Tools: Decisions around tool selection, notably opting for specialized solutions like Oomnitza over generalist platforms, were pivotal. These tools aligned with Netflix’s specific needs and offered scalability and integration capabilities.

Optimization Is Within Reach

My conversation with Kim is a testament to the tangible benefits that ITAM offers. With ITAM, organizations can navigate this path confidently, ensuring technology assets are leveraged to their fullest potential.

As demonstrated by Netflix, building a business case for ITAM is about showcasing its direct impact on cost control, risk management, and decision-making efficacy. Armed with these insights, IT leaders are encouraged to evaluate their current asset management practices and consider how adopting a robust ITAM strategy could transform their operations.

For those ready to embark on this transformative journey, remember the cost of ITAM is eclipsed by the savings and efficiencies it brings.

To listen to or watch the recording of my conversation with Kim, click here.

To learn more about how ITAM can benefit your organization or to start a conversation about implementing ITAM strategies tailored to your needs, reach out today. Together, let’s unlock the full potential of your IT assets, guided by proven practices and the successful experiences of industry leaders like Netflix.

If you’re enthusiastic about enhancing your organization’s ITAM practices but encountering challenges in getting approval from senior management, you may find these two articles helpful:?

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• Successful Cost Optimization Starts With ITAM
• 3 CIO Rules to Mastering the Art of Persuasion