The hidden costs of software inventory

Inventory control is a well-established and understood practice in businesses to help track, label and reduce physical stock costs. CEOs, CFOs and business owners are aware of the advantages and disadvantages and are keen to optimize stock levels. Inventory is also one of the eight wastes in the Lean methodology. Companies embracing Lean have trained employees to spot waste and find ways to improve processes to reduce it continuously.

While the inventory of physical goods is well recognized, it’s much more difficult for companies to identify their ‘software inventory’ as a possible root cause behind the lack of innovation speed. And while many companies recognize their software as an asset, it’s also a liability: owning too much software slows a business down.