1. The importance of Software
Procurement to your company’s Value
Chain
By Qahir Makhani

2. Introduction
• My name is Qahir Makhani and I am a young professional who has worked
in both the IT Software and FMCG industries, in both Sales and Supply
Chain Management respectively.
• In addition to the experience, I hold a Bachelor’s Degree in Global
Supply Chain Management and Marketing, a course that was heavily
focused on Michael Porter’s Value Chain.
• The combination of my educational background and work experience has
led to me developing strong interests in the integration of demand and
supply, along with consumer driven value chains.
• This in turn has led to me wanting to pursue a career in the field of IT
Procurement in order to apply the knowledge gained from my experiences in
order to add further value to any company’s organisation

3. Why Qahir?
• I am someone who is ambitious, confident and has the ability to
work autonomously or as part of a team.
• I am a quick learner with a collaborative outlook and an
intellectual curiosity to learn about how my actions impact other
business areas and vice versa. I also have a proven ability to work
cross-functionally in a multicultural environment.
• Furthermore, I am a quick learner who is able to balance
conflicting priorities and multiple projects simultaneously while
still being able to perform

4. The Value Chain
The “Value Chain” is a concept
devised by Harvard Professor
Michael Porter that details the
primary and supporting
activities within an organisation
that need to work in sync with
each other in order to create
value for an organisation, it’s
shareholders and its customers.
Information
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5. Choices, choices
• However, due to the fact that there are several vendors for almost
anything, companies now have the choice to :
• Consolidate their supply base
• Buy from multiple vendors
• Buy a product from one vendor that contains Software from other vendors,
therefore allowing you to have the benefit of quality software from multiple
sources

6. An example
• Imagine that it is a hot day and you are really wanting to eat a Kinder
Bueno bar, but also want to have a milkshake too. You’re also on a diet
while you only have £4. Other factors include:
• £3 for Chocolate Milkshake
• £2 for Kinder Bueno
• However, the shop also has the option of a Kinder Bueno Milkshake for
£4, which allows you to have:
• The Kinder Bueno and the Milkshake
• Within your budget
• And fitting the constraints of your diet

7. The missing link
Consumer Demand Information
ConsumerDemand

8. Questions to ask prior to making a decision?
• As we all know, IT Procurement, especially that of Software is now a
more strategic decision than it has ever been before. So here are a few
questions/factors needing to be considered prior to making a decision or
even putting together an RFQ:
• Which company provides the hardware being used?
• Do the same company provide all of the Software due to incompatibility with
other vendors?
• How many vendors am I buying from?
• Which ERP,MRP and CRM systems am I using?
• Is any of my Software open-source/compatible with any Hardware?
• Does my current IT Estate provide me with visibility across the value chain?
• Am I paying for the same product twice?
• Am I looking to reduce spend on Hardware/reduce the level of Hardware in my
IT estate?
• How long will it take to make changes if needed?

9. AN IT Value Chain based on Porter’s Concept
A one-stop shop
Option 1

10. Option 2- a bit of everything

11. But please don’t choose option 3
Because like the milkshake example, you
get both without paying for both
separately!!!

12. Due to this
• SAP Hana runs on HP- therefore providing the best Application
Solution Testing Product as part of a comprehensive Business
Suite.

13. Other Considerations
• When selecting a Software Vendor(s), you must ensure that the
Software is Open-Source or contains Open-source Software in
order to optimise the value of your IT Estate. Reasons for this
include:
• No replacement costs
• The possibility of moving data to the cloud
• Being able to use Virtual Servers
• The chance to reduce your Hardware Estate and therefore Carbon Footprint
along with freeing physical space.