Introduction

Our expertise in ICT procurement helped a multinational mining company save over $40m on a critical operational technology contract.  We’ve also delivered the highest value ICT services contract for the company worth over $1.2bn.

Assessing the Initial Situation

Technology procurement in modern complex organisations is a critical enabler of value as well as a key risk.  Our initial work on the project identified a gap in the internal understanding of the scope and utilisation of the software.  This presented significant challenges in negotiating as the supplier had changed the licensing model from enterprise to quantity-based pricing mechanism.

Achieving Results

• Clear strategy and approach: documented and executed a clear strategy to negotiate.

• Stakeholder alignment: stakeholders across 13 assets and three continents required clear alignment on contract changes and potential cost impacts. 

• Strategic focus: working with technical stakeholders we identified and quantified the cost and time to change to enable a comprehensive options assessment as well as a TCO.

* Focussed negotiation: lengthy negotiations with the supplier occurred.  A clear focus on the desired outcome kept the negotiation on track to unlock maximum value.

Conclusion

The project derisked a significant contract for the organisation for the next five years enabling a further internal review of how the technology is used.  Multiple lessons were captured during the process with recommendations and actions presented to inform future strategies and negotiations.