Reduction of £1.9 Million IBM Audit penalty

The customer is a prominent retail chain in the United Kingdom, with approximately 500 premises distributed across the country. They were undergoing an IBM software audit. Initial findings identified substantial non-compliance issues with a financial penalty of £1.900.000. This led the organization to seek expert assistance in mitigating the financial impact.

Facing a substantial IBM audit penalty with significant financial exposure:

• Initial £1.9 million penalty determined by external auditors
• Complex licensing structure spanning nearly 500 retail locations nationwide
• Limited internal capacity and skills to contest complex licensing claims
• Critical time pressures due to audit deadlines
• Complex licensing requirements (Cognos, Planning Analytics, subcapacity, etc.)

Noventiq implemented a structured three-phase approach targeting specific compliance areas to reduce exposure.

• Conducted a detailed three-phase audit evaluation:
  1. Cognos and Planning Analytics license optimization
  2. IBM sub-capacity compliance validation 
  3. Settlement negotiation leveraging Noventiq expertise
• Shifted internal focus toward proactive license housekeeping
• Implemented a reusable audit response framework

Noventiq reduced the audit penalty by 99.5% from £1.9 million to under £10.000, delivering exceptional ROI while establishing improved compliance practices.

• Immediate penalty reduction to £1.36 million after Phase 1
• Further decreased to £240.000 through sub-capacity strategy after Phase 2
• Final negotiated settlement: less than £10.000 after Phase 3
• ROI on Noventiq services: 109x
• Established a replicable process