Download - Measure SAP ROI
© West Trax International Ltd.
Optimising ERP Value
Measure Your SAP ROI
Analyse Optimise Realise
Slide 2 © West Trax International Ltd.
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
Slide 3 © West Trax International Ltd.
“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
Slide 4 © West Trax International Ltd.
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
SourceAMR Research
SourceWest Trax
Benchmark Data
Slide 5 © West Trax International Ltd.
Average Customisation By Sector
Gov
ernm
ent
Pha
rma
Aut
omot
ive
Man
ufac
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g
Che
mic
als
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Tra
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rt
Insu
ranc
e
Con
sum
er G
oods
Ser
vice
Tel
co
Fin
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
Slide 6 © West Trax International Ltd.
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
SourceAMR Research
SourceWest Trax
Benchmark Data
SourceWest Trax
Benchmark Data
Slide 7 © West Trax International Ltd.
Tra
nspo
rt
Con
sum
er G
oods
Fin
ance
Ser
vice
Pha
rma
Aut
omot
ive
Man
ufac
turin
g
Che
mic
als
Insu
ranc
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
Slide 8 © West Trax International Ltd.
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
SourceAMR Research
SourceWest Trax
Benchmark Data
SourceWest Trax
Benchmark Data
SourceWest Trax
Benchmark Data
Slide 9 © West Trax International Ltd.
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 Best Practice
Measured Worst Case
Standardisation By Sector
Slide 10 © West Trax International Ltd.
Pha
rma
Che
mic
als
Man
ufac
turin
g
Aut
omot
ive
Con
sum
er G
oods
Ser
vice
Tra
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rt
Tel
co
Insu
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e
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 Best Practice
Measured Worst Case
Unused Standard By Sector
Slide 11 © West Trax International Ltd.
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
SourceAMR Research
SourceWest Trax
Benchmark Data
SourceWest Trax
Benchmark Data
SourceWest Trax
Benchmark Data
.
You Can't Manage What You
Don't Measure
Slide 12 © West Trax International Ltd.
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 ®
Slide 13 © West Trax International Ltd.
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®
Slide 14 © West Trax International Ltd.
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
Slide 15 © West Trax International Ltd.
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
Slide 16 © West Trax International Ltd.
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
Slide 17 © West Trax International Ltd.
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
Slide 18 © West Trax International Ltd.
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
Slide 19 © West Trax International Ltd.
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
Slide 20 © West Trax International Ltd.
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
Slide 21 © West Trax International Ltd.
Some Of Our Clients
Slide 22 © West Trax International Ltd.
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!
Slide 23 © West Trax International Ltd.
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