One of the biggest dilemmas facing IT departments that run SAP is how to deliver the maximum value to the business from the investment in SAP at the same time as keeping control of the exceptional costs of running, upgrading and enhancing an SAP system.

This used to be an almost impossible task... until West Trax introduced their unique SAP analysis process.

We review this approach, and the tools adopted by a number of companies across Europe and the Middle East that are substantially reducing the total costs of running SAP, significantly improving the upgrade process, and helping to ensure compliance to recent regulatory legislation.

"Potential Savings"

The problem with SAP systems is that their functionality is often so extensive and complex that it can be almost impossible to assess a systems real operational efficiency, or to quantify exactly what should be done to add additional business value.

This situation becomes particularly acute when systems are being considered for upgrade or consolidation - where there is significant potential for business gain, if only the right choices could be made.

                                                                                            West Trax 'Potential Savings' SAP Analysis

To give you an indication of the size of the problem (and therefore the potential) that may exist within your SAP system, here is what West Trax found when they analysed the 'real' efficiency of over 90 European SAP systems¹. They found that:

• Only around 50% of the custom code that had been developed and supported at high cost was actually being used.

• Of this they found that, on average, 20% could have been replaced by standard SAP code.

• Less than 50% of the standard SAP functionality, available and contracted for, was actually being used.

• There were significant shortcomings in Quality, Cost, Performance and Productivity KPI's in nearly all systems that offered significant scope for operational and business improvements.

These inefficiencies alone can equate to an overspend on system support of between €250,000 - €2 million per annum depending upon the size of the SAP system and extent of custom code. 

Interestingly, none of the companies whose systems were analysed were aware of these statistics or overspend until the West Trax analysis exposed the 'real' utilisation of the system.

Referenced by Butler Group as recommended reading², this data provides one of the most valuable ways for companies to assess (and benchmark) their systems prior to an upgrade, optimisation or consolidation.

"A New Understanding Of Your SAP System"

Understanding the internals of your SAP system is critical for any upgrade, value management exercise, optimisation or audit of your Enterprise System.

The WestTrax solution is unique in that it offers an extensive and well proven process that can save you many hundreds of thousands of pounds every year by providing you with:

• A unique understanding and analysis of your SAP System - that will allow you see what is going on inside your SAP system and to unlock redundant functionality, operational costs and operational inefficiencies.

• The case (or not) for an SAP upgrade, optimisation or consolidation - by comparing current (quantitative) utilisation against benchmarked best performance and SAP released functionality.

• A Quantitative and Qualitative Assessment of your SAP System  - that will allow you to make objective and well informed decisions as the basis for your SAP system strategy.

• Better utilisation of standard SAP functionality that is often being paid for but not used.

• Significant operational cost savings - by showing you exactly where your SAP can be optimised.

• System optimisation and compliance - benchmarked at a best practice, industry benchmark and peer level comparison - whether the system was developed in house or by an external System Integrator.

• A wholly accurate breakdown of exactly how much custom code is in the system and how much of it is being used, how well it is performing and any compliance issues that it is potentially creating.

• Exactly how much of this custom code could be replaced by standard code and the potential cost savings and improvements in support and compliance.

• How much additional system potential exists that is not yet being exploited, but could deliver significant additional business payback.

• Identification of any internal or external system performance problems and determine ways in which they can be addressed or minimised.

• Identification of any quality or compliance problems and how they can be eliminated.

• A drill down, in-depth analysis of the root causes of non-conforming KPI's with specific recommendations for system optimisation.

• Reduced project and implementation costs by optimising business processes and improving system quality and performance.

• Enhanced business ROI of your SAP system by applying benchmarks to release upgrades, consolidations, outsourcing as well as for individual systems.

• The unlocking of support costs that can be applied to other IT or business imperatives.

• An increased value perception of IT by demonstrating industry benchmark level performance.
   

"A Detailed Analysis Of Your SAP System"
 

Until recently there have been few, if any, available tools that allow organisations to quantitatively analyse the 'real' quality of an SAP system. 

The West Trax KPI Scan^® family of services does exactly this - showing you exactly what is going on the inside of your SAP System and relating it directly to the external business value, SAP functionality and custom code utilisation.

And in the process helping you to understand how well your system has been implemented, the scale of opportunity easily available to you to reduce cost, and providing the means to improve the optimisation and overall the operation your SAP Systems.

Here are just some of the things you will learn.
 

Gain A Benchmarked Understanding Of Your SAP System

Look at a comprehensive analysis of your system and its key operational performance indicators and understand how much value you are losing. Identify where operational efficiencies and cost savings are available, see how it benchmarks against other peer systems, identify exactly how to optimise operational costs, business payback and compliance.

 Know Exactly How Much You Can Save In System Operating Costs

Measure, compare and identify the potential for cost savings based upon system parameters, industry comparisons and best practice.



 

Discover Exactly How Much Custom Code You Have - Compared With How Much You Should Have

Review your systems custom code against industry benchmarks and best practice from over 90 SAP systems across 14 industry segments.

See How Well Optimised Your System Is Compared With Other Systems In Your Sector

Compare and benchmark your system against peer systems in your industry sector to identify opportunities for major system optimisation.

Accurately Understand The Potential Cost Savings Available in Your System Support - And Exactly How To Realise These Savings

Assess the average annual support cost per redundant custom code programme against average % customisation for your industry and against best practice.

See Exactly How Your System Is Being Utilised And The Opportunities For Greater Return
 

Discover exactly which (and whether) standard transactions that are actually being used in each Enterprise Area.
 

See Exactly What Standard Code Is Going
Unused And How You Can Increase The Utilisation
Of Your System

Understand where it is possible to achieve increased standardisation, exploit available standard code to the full and take advantage of standard functionality.

Understand Where Standard or Custom Code Is Not Performing Favourably And How You Can Improve Operational Performance & Quality

Identify where standard or custom code is not performing favourably as a percentage of all used programs in the system.

axentiv AG:
"At axentiv we have found that we can achieve dramatic reductions in SAP operational costs and improvements in productivity.

Through the use of Benchmark Express® we have identified expensive, time consuming overheads in client systems that could be readily eliminated. Savings of up to 30% are not unusual.

Projects where we have successfully employed Benchmark Express® have produced significant savings and productivity improvements."
                                                                                           Gerd Kanzleiter, axentiv AG