west trax sap kpi of the month – january 2016
TRANSCRIPT
West Trax SAP KPI of the Month – January 2016
Average Percentage of Custom Code Frequently Used in
SAP Systems in the Automotive Sector = 19%
In-house developments are very costly and time consuming for a company. They should only be used when they increase the competitiveness of the company and no comparable standard functionality is available. However, reality shows that many production systems contain a variety of custom code which is not actually used in operations and thus rarely delivers value. Rather it inflates the cost of the system unnecessarily. Lack of transparency prevents companies recognizing this gap between implemented and unused functionality. Against this background, the KPI of the Moth for January highlights the average share of custom code that is frequently used in SAP systems in the automotive industry. This currently stands at only 19%. That is, an average of just 19% of the self-developed
programs and transactions in SAP systems in the Automotive sector are used on a daily basis. This benchmark is based on 167 system analyses. Most of the systems analysed by West Trax show significant under-utilisation of major functional components that are currently available in the systems and are incurring SAP
license and maintenance charges. Redundant or inefficiently used custom code, underutilisation of SAP standard software and a lack of awareness of available standard functionality all inflate the already substantial costs associated with SAP system operations and projects. Many organisations continue to support extensively customised systems or are burdened with substantial overheads due to redundant custom code. Technical upgrades often
result in opportunities to re-standardise being overlooked, leaving systems poorly positioned to exploit the benefits of best practice business processes and new technologies such as the Cloud and SAP HANA®. As a result the business advantages and added-value expected from their strategic investments in SAP are often unrealised. The consequences include lower productivity, increased costs, reduced profitability, compliance exposures and customer dissatisfaction.
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