measure sap roi

© West Trax International Ltd.

Optimising ERP Value

Measure Your SAP ROI

Analyse Optimise Realise


Why Do Organisations Not Achieve Planned SAP ROI And Benefits?

Low ROI From ERP Systems?

Only 37% Of Companies

Measured Value After Go Live

SourceAMR Research


“The survey of 186 companies -71% of which have $1B or morein revenue – revealed the following findings:

Only 37% of companies actuallymeasure the business value fromtheir ERP projects.”

Source AMR Research and ASUG






30-40% of Used Programs Are Customised

SourceAMR Research

SourceWest Trax

Benchmark Data


Average Customisation By Sector

Gov

ernm

ent

Pha

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Aut

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ive

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g

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rt

Insu

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e

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oods

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vice

Tel

co

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ance

Ene

rgy

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

20

.4%

23

.2%

23

.7% 3

0.2

%

30

.3%

30

.5%

30

.8%

31

.4%

32

.4%

34

.6%

35

.8%

36

.8%

38

.2%

2.7

%

12

.6%

10

.9%

11

.4%

10

.6%

23

.9%

15

.9%

19

.4%

5.1

%

16

.2%

18

.7%

17

.8%

16

.0%

Custom Code KPI

Average Measured Best Practice







30-40% of Customised Programs Never Used

SourceAMR Research

SourceWest Trax

Benchmark Data

SourceWest Trax

Benchmark Data


Tra

nspo

rt

Con

sum

er G

oods

Fin

ance

Ser

vice

Pha

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Aut

omot

ive

Man

ufac

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g

Che

mic

als

Insu

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e

Gov

ernm

ent

Tel

co

Ene

rgy

Hea

lthca

re

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

29.9

%

32.0

%

34.6

%

36.5

%

37.4

%

39.4

%

40.2

%

40.7

%

41.3

%

43.9

%

44.9

%

48.3

%

53.7

%

20.6

%

0.0%

0.0%

7.7%

24.4

%

5.3%

16.9

%

13.3

%

16.5

% 25.0

%

7.7%

28.6

%

33.4

%

36.8

%

65.4

%

60.6

%

63.2

%

48.1

%

64.6

%

64.5

%

68.3

%

62.9

%

60.1

%

62.1

%

87.5

%

77.3

%

Unused Custom Developed Code KPI

Average

Measured Best Practice

Measured Worst Case

Unused Custom Code By Sector








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

SourceAMR Research

SourceWest Trax

Benchmark Data

SourceWest Trax

Benchmark Data

SourceWest Trax

Benchmark Data


Au

tom

otiv

e

Go

vern

me

nt

Ph

arm

a

Ma

nu

fact

uri

ng

Te

lco

Ch

em

ica

ls

He

alth

care

Co

nsu

me

r G

oo

ds

Se

rvic

e

Tra

nsp

ort

Fin

an

ce

En

erg

y

Insu

ran

ce

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

59.9

%

58.8

%

53.4

%

52.0

%

51.3

%

51.0

%

50.7

%

50.7

%

47.3

%

47.1

%

46.5

%

46.4

%

44.7

%

83.6

%

76.7

%

67.1

% 74.0

%

78.8

%

74.7

%

61.0

%

71.0

%

65.6

%

59.7

%

62.7

%

57.2

% 65.2

%

34.3

% 41.6

%

37.8

%

28.0

%

32.3

%

24.0

%

41.6

%

22.4

%

20.0

%

18.5

%

29.5

%

30.8

%

31.5

%

Degree of Standardisation KPIAverage


Measured Worst Case

Standardisation By Sector


Pha

rma

Che

mic

als

Man

ufac

turin

g

Aut

omot

ive

Con

sum

er G

oods

Ser

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Tel

co

Insu

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Hea

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re

Ene

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Gov

ernm

ent

Fin

ance

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

67.6

%

67.7

%

68.4

% 74.1

%

77.3

%

80.3

%

81.8

%

83.5

%

83.8

%

84.2

%

84.3

%

85.7

%

88.3

%

52.6

%

40.3

%

40.3

%

52.3

%

69.2

%

66.8

%

67.1

%

68.8

%

72.7

% 77.2

%

75.6

%

79.7

%

82.7

%

75.7

%

85.7

%

94.1

%

87.1

%

91.0

%

93.7

%

93.9

%

89.5

%

91.8

%

89.1

%

97.4

%

88.6

%

96.9

%

Unused Standard Potential KPI

Average


Measured Worst Case

Unused Standard By Sector








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

Major Optimisation Opportunities Missed

SourceAMR Research

SourceWest Trax

Benchmark Data

SourceWest Trax

Benchmark Data

SourceWest Trax

Benchmark Data

.

You Can't Manage What You

Don't Measure


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 WithKPI Scan®

Optimise WithBusiness Process Optimiser

“Back To Standard” With

ABAP Parser

Optimise With Custom Code

Optimiser

What Gets Measured

Gets Managed!

Verify Optimisation

with KPI QA ®


How To Measure SAP Value

WithMeasure And Optimise SAP Value

KPI Scan®

MEASUREEstablish Potential - As-Is Analysis - KPI's & Benchmarks- Optimisation Potential- Action Plans- Cost / Benefit Analyses- Implementation Strategies- Certification

KPI Optimiser®

- Standard Functionality- Custom Code- Performance- Automation- Usage

KPI QA®


When To Measure SAP Value

KPI Scan®

KPI Optimiser®

KPI‘s, BenchmarksAction plans

Cost / Benefit AnalysesImplementation Strategies

Design, develop, convert, test

West Trax OptimisationAnd

Benchmarking Services

Implementation Partners And Tool

Vendors

Planning Phase

Establish Current

System Baseline And

Optimisation PlansDevelop Lean Risk Free

Business Cases And Project Plans

Implementation Phase

Post Project PhaseEstablish New

System Baseline Track Goal Achievement

KPI QA®West Trax

Quality AssuranceService


SAP OutsourcingAssessment

SAP UpgradeAssessment

SAP ConsolidationAssessment

SAP ApplicationModernisationAssessment

IndependentQuality

Certification

Opportunities To Optimise ROI

Reduce Maintenance Costs By 10-40%,

ROI In Approx. 6 Months

Reduce Project Duration Reduce Costs By 35%+

Reduce Project Duration.

Reduce Costs By 35%+

Reliable Due Diligence Outsource Clean Lean

System Realistic Verifiable SLA‘s


SAPStandard

Other Applications

SAPSystem 1

SAPStandard

OtherApplications

SAPSystem 2

SAPStandard

OtherApplications

SAPSystem 3

SAPStandard

OtherApplications

SAPSystem n

Centralised Custom Code

SAP Standard Applications

OtherApplications

Template

Process Gaps, Variations In Implementation

and Inconsistent Usage Identified

Gap Analysis

Gap Analysis

Gap Analysis

Gap Analysis

Consistent Optimisation and UsageAcross Multiple SAP SystemsWest Trax Provides Automated Measurement And Comparison Of

SAP Core Processes, Custom Code And Non-Core Applications


Segment 1

SAP

Legacy

Manual

Segment 2

SAP

Legacy Man

ual

Segment 3

SAP

Legacy Man

ual

Segment n

SAP

Legacy Man

ual

Template per Segme

nt

SAPLegacy

Manual

Semi-Automated Enterprise Wide Comparisons of End To End

Business Processes

Gap Analysis

Gap Analysis

Gap Analysis

Gap Analysis

Comparisons of Business ProcessIncluding IT and Manual Components


Responses to Specific Client Needs

SAP Updates

ProcessDocumentation

CustomCode

CatalogueUnused

StandardPotential

CustomCode

Alternatives

QualityCertification

RealWorldClientIssues

Client NeedsAutomatic identification of processes affected by SAP updates. Elimination of unnecessary test activities for unaffected processes.

Automatic documentation of processes for storage in SAP Solution Manager.

Analysis and documentation of accesses to tables and other objects by Custom Code. Provides transparency to re-standardisation opportunities.

Automatic identification of potential to replace Custom Code with available Standard functionality in order to exploit the full potential of SAP Application Core Processes and reduce operating expenses.Automatic identification and financial evaluation of appropriate Standard alternatives.

Independent confirmation of effective cost and resource management, high level of standardisation, optimised use of core processes and custom code, excellent performance and documentation.

West Trax Solution


Benefits For Clients

Status quo Target West Trax Solution

Mods.User ExitsSubmitsIncludes

RFC’sBackground

Jobs

Modernisation

UpgradesOutsourcing

Consolidation

HarmonisedEnterpriseReporting

Cross Enterprise

ManagementControl

Pre-configured and complete reporting application providing business dashboards for all

enterprise units and functions.

Provide Overview and Transparency.

Ensure efficient management and avoidance of unnecessary response issues or problems.

Reduce operating expenses, improve usage quality, maximise system effectiveness and

efficiency.

Reduce project time cost and risk. Accurate basis for calculations. Efficient project realisation

A dashboard for management of goals, opportunities, risk, problems, processes and

projects. The instrument for enterprise, function and department control.

1

2

3

4

5

6

6

5

4

3

2

1

RealWorld Client

Issues


Financial Benefits Of “Back To Standard”

CustomCode Usage

PossibleAlternatives

AnnualSupportCosts

One time

Charge

Immediate

savings

Sales:Measuriements/

comparisons,

Credit notes,

Bonus issues.

Customers:Client delivery,

logistics

FinanceDebtors,

Interface to 3rd Party

Logistics:Corrections

CurrentOPEX

€435K

One Time

Charge€230K

Immediatesavings

€140K

€95K

€75K

€65K

€85K€60K

€55K

BI Solution

CRM Module

Back toStandard

Back to Standard

Back to standard

€60K

€65K

€20K

€70K

€15K

€35K

€10K

€40K

€40K

€40K

FutureOPEX

€16K

€13K

ZERO

ZERO

ZERO

Future OPEX

-93%!€29K!

Analysis Costs

(Example)€65K


Some Of Our Clients

http://www.umicore.com/

http://www.sabic.com/

http://www.swb-gruppe.de/index.php

http://www4.modine.com/v2portal/page/portal/modine/pageHome

http://www.muenchener-hyp.de/index.html

http://www.holcim.com/CORP/EN/page/home.html

http://www.swisscom.ch/privatkunden

http://www.bardusch.de/index.html


Continuous Improvement Cycle

Optimised ROI From Best

Practice SAP Systems

Up To Date 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

What Gets Measured

Regularly Gets Better!


Please Contact David Long

Chief ExecutiveWest Trax Ltd.

T: +44 (0) 1989 780114M: +44 (0) 7774 808694E: [email protected] W: www.westtrax.com

Discover The Potential To Increase ROI In Your SAP Systems

With

measure sap roi

Technology

west trax international

customised west trax

achieveplanned sap roi

customised west traxprograms

usedsourcewest trax

low roi fromerp systems

best practice insurance

erp projects