measure sap roi - 2016 update

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Enhanced Benchmarking Updated Benchmark Data

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Enhanced Benchmarking

Updated Benchmark Data

Measure SAP ROI – 2016 Update

“Measure SAP ROI” first published 2013

Benchmark data regularly updated

Now includes results from over 1,500 analyses of clients’

SAP systems across 15 sectors

Several Measured Best Practice values have been

recorded following West Trax optimization projects

Methodology extended to determine SAP system

maturity level in terms of future readiness and the likely

benefits of investments in new technologies and projects

Page 2 © West Trax

Why Do Organisations Not Achieve

Planned SAP ROI And Benefits?

Low ROI From ERP Systems?

Only 37% Of

Companies Measured

Value After Go Live

30-40% of Used Programs Are Customised

30-40% of Customised Programs Never Used

50%+ of Available and Relevant SAP Standard Functionality Not Used

Major Optimisation Opportunities Missed Source

AMR Research

Source

West Trax

Benchmark

Data

Source

West Trax

Benchmark

Data

Source

West Trax

Benchmark

Data

.

You Can't Manage What You Don't Measure

Page 3 © West Trax

Updated Benchmark Data

Measure SAP ROI - 2016

Page 4 © West Trax

The West Trax Benchmarks

Certified KPI Model:

Degree of Standardization

Standard potential

Custom Code Usage

Performance

Process Efficiency

Potential Savings

Automation

etc.

Benchmark Database

> 1.500 Analyses

Page 5 © West Trax

© West Trax International Ltd.

Average Customisation By Sector

18

.2%

23

.2%

23

.8%

30

.3%

30

.5%

30

.8%

32

.2%

32

.3%

35

.4%

35

.6%

36

.7%

39

.2%

41

.9%

45

.5%

46

.2%

2.7

% 12

.6%

10

.9%

10

.6%

23

.9%

13

.9%

19

.4%

17

.8%

5.1

% 1

6.2

%

6.9

% 1

7.8

%

6.5

% 1

8.7

%

16

.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

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Custom Code KPI

Average Measured Best Practice

Page 6 © West Trax

Unused Custom Code By Sector

Page 7 © West Trax

Standardization By Sector

Page 8 © West Trax

Unused Standard By Sector

Page 9 © West Trax

Benchmark Data Updates

Measure SAP ROI - 2016

The West Trax benchmark database is continually

updated with the anonymised results of additional

client analyses

The latest benchmark data and specific KPI values

are available by subscription or on request

For more details about updates please contact: -

Diana Bohr - Chief Technology Officer

T: +(49) 6430 92098

E: [email protected]

W: www.westtrax.com

Page 10 © West Trax

How To Measure SAP Value

With

Measure And Optimise SAP Value K

PI

Scan

®

MEASURE

Establish Potential

- As-Is Analysis

- KPI's & Benchmarks

- Optimisation Potential

- Action Plans

- Cost / Benefit Analyses

- Implementation Strategies

- Certification

KPI

Opti

mis

er

®

ACT

Detailed Analysis

- Business Processes

- Standard Functionality

- Custom Code

- Performance

- Automation

- Usage

KPI

QA

®

VERIFY

Quality Assurance

- Updated KPI's

- Updated Benchmarks

- Trend Data

- Early Warning Signs

- Ongoing Optimisation

- Best Practice

- Re-certification

Page 11 © West Trax

How To Optimise ROI After Go Live

Optimised ROI From ERP Systems

Establish Current As-Is Baseline And

Optimisation Potential/

Eliminate All Unnecessary Custom Programs

Replace Used Custom Code Programs With

Standard

Exploit Full Potential of Available and Relevant

SAP Standard Functionality

KPI’s And Benchmarks To Verify & Monitor Optimisation Levels

Measure With

KPI Scan®

Optimise With

Business

Process

Optimiser

“Back To Standard”

With

ABAP Parser

Optimise With

Custom Code

Optimiser

Verify

Optimisation

with

KPI QA ®

What Gets Measured Regularly Gets Better!

Page 12 © West Trax

West Trax Maturity Assessment

for SAP® Systems

Measure SAP ROI - 2016

West Trax has been awarded "BEST OF 2016" ERP for its

Maturity Model® for SAP Systems by "Initiative Mittelstand", a

German interest group supporting medium size enterprises.

Page 13 © West Trax

Ready for… System optimization, Usage optimization, or New implementation etc.

Ready for… Process optimization, Clean up, Accelerated data entry etc.

Ready for… In-Memory Database, Cloud, Mobile Computing, Automation etc.

Ready for… SAP HANA, Master Data Optimization, Re-Standardisation etc.

Ready for… S/4 HANA, Run Simple Business Processes, Big Data, Analytics, Real Time Business, Internet of Things etc.

WEST TRAX Maturity Model©

for SAP Systems

Innovative

At Risk

Static

Improvable

Future oriented

Business Value

Strategic Value Gap

Page 14 © West Trax

Ensure future readiness of systems to maximize benefits of

new technologies such as HANA, S/4HANA, on premises

and in the cloud.

Optimize benefits when pre-positioning for projects such as

upgrades, EHP’s, outsourcing, consolidations, acquisitions

and mergers.

Establish an objective determination of the "As-Is“ situation

and clear actions to be taken to achieve the desired goals

and benefits.

Determine system maturity level in terms of its future

readiness and the likely benefits of investments in new

technologies and projects.

Develop sound Business Case for resulting projects a

based on reliable facts.

West Trax Maturity Assessment

for SAP® Systems

Page 15 © West Trax

Ready for… System optimization, Usage optimization, or New implementation etc.

Ready for… Process optimization, Clean up, Accelerated data entry etc.

Ready for… In-Memory Database, Cloud, Mobile Computing, Automation etc.

Ready for… SAP HANA, Master Data Optimization, Re-Standardisation etc.

Ready for… S/4 HANA, Run Simple Business Processes, Big Data, Analytics, Real Time Business, Internet of Things etc.

WEST TRAX Maturity Model©

for SAP Systems

Innovative

At Risk

Static

Improvable

Future oriented

Business Value

Strategic Value Gap

Page 16 © West Trax

Ready for… System optimization, Usage optimization, or New implementation etc.

Ready for… Process optimization, Clean up, Accelerated data entry etc.

Ready for… In-Memory Database, Cloud, Mobile Computing, Automation etc.

Ready for… SAP HANA, Master Data Optimization, Re-Standardisation etc.

Ready for… S/4 HANA, Run Simple Business Processes, Big Data, Analytics, Real Time Business, Internet of Things etc.

WEST TRAX Maturity Model©

for SAP Systems

Innovative

At Risk

Static

Improvable

Future oriented

Business Value

Strategic Value Gap

Page 17 © West Trax

Your System As-Is Today?

Business Processes low standardization

not state of the art

not or rarely automated

Master Data Quality low

redundant data

Infrastructure old

not “compatible“

Software not latest release

Service Processes no “rules” in place

no control

Know How not or not fully available

Lack of Resources

Budget Not enough for modernization and

HANA projects

Requirements for successful

use of new technology not

yet fulfilled.

Page 18 © West Trax

Important Success Factors for

SAP Projects:

Traceable Use Cases

Fact-based Business Case

Standardized Processes

Automation

Management, IT, Process Owners and

external Service Provider work

hand in hand

Facts establishing As-Is as common

basis for discussions IT

Process Owner

External

Service Provider

Many Interests

Different Opinions

Few Facts

Success Factors for future SAP Projects (i.e. Optimization, HANA, Re-Standardization, Consolidation etc.)

Page 19 © West Trax

West Trax delivers reliable facts as guidelines for SAP projects

Facts avoid

subjective discussions!

Facts avoid

factions!

Common Facts, The Key to Success!

Facts prevent

planning errors!

Facts Support Project Success!

Page 20 © West Trax

West Trax benchmarks indicate that the majority of

production systems are currently at Maturity Level 3 or

lower.

The West Trax Maturity Model illustrates significant

decision points and life-cycle events for your SAP system.

Senior executives are aware of competitive business

imperatives driving migration to much publicised digital

transformation projects .

ROI, costs, resources, risks involved in migrating to higher

Maturity Levels are often unquantified.

It is essential to know exactly where you are starting from

before you start planning where you want to get to.

Do nothing is probably not a good option!

West Trax Maturity Assessment

for SAP® Systems

Page 21 © West Trax

Measure SAP ROI - 2016

To find out more about the benefits of

West Trax benchmarking and

the West Trax SAP Maturity Assessment please

contact: -

Diana Bohr

Chief Technology Officer

Amselweg 13

D-65623 Hahnstätten

Germany

T: +(49) 6430 92098

E: [email protected]

W: www.westtrax.com

Page 22 © West Trax

Enhanced Benchmarking

Updated Benchmark Data