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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
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%
Go
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nt
Ph
arm
a
Au
tom
otive
Ch
em
ica
ls
He
alth
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re
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nsp
ort
Insura
nce
Co
nstr
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r G
oo
ds
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Ma
nu
factu
ring
Fin
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ce
Ste
el
Tele
com
mu
nic
ation
En
erg
y
Custom Code KPI
Average Measured Best Practice
Page 6 © 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: dbohr@westtrax.com
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: dbohr@westtrax.com
W: www.westtrax.com
Page 22 © West Trax