Maximizing ROI from SAP. Rebecca Wettemann [email protected] About Nucleus Research. An ROI-focused technology research and advisory firm.
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An ROI-focused technology research and advisory firm.
We deliver ongoing advice, analysis and modeling tools to help senior management quantify and prove the financial and business benefit their technology decisions bring to the corporation.
Research centers in Boston, Paris, and London
“How many people will the application affect?”
“How many times a day will they use it?”
“Is this a costly task?”
“Will employees need to collaborate?”
“Can I reuse the information I create?”
“We deployed the SAP Portal to get simplified self-service access into SAP HR information.”
“Customers can call up information about their orders for delivery or repair and have the drill-down from SAP delivered to them.”
“We’ve reduced the cost of preparing sales materials because teams have all the information easily accessible to them.”
“Our next phase will bring in back-end transaction access. That’s dependent on how quickly we can Web-enable back-end systems. We’re running SAP on the back-end and will be seeing an SAP portal within the IBM portal. In most cases its easier to integrate with IBM than rewrite the SAP portal. The SAP Portal is very specific to SAP, but the IBM portal is much more flexible as an enterprise portal.”
“We don’t want to have to reinvent the wheel when we upgrade. So it’s better to open the app. with Web services than to use the portal directly.”
Other Portal UIs
Other Portal UIs
Data access (EAI, messaging, adapters)
BPM/Human workflow (state, exception handling, etc.)
Needed a way to support orders and fulfillment for resellers
Deploy hosted e-commerce solution (Venda) integrated with SAP to open SAP product information and order fulfillment to resellers
Payback: 1.1 yearsExample: Xerox Document Supplies
Toolbox used to measure the value of technology:
The average total savings over 3 years divided by the cost.
Nucleus recommends a three year horizon but use a time period consistent with your organization’s standards.
(Year 1, Year 2, Year 3) / 3
Total Cost of Ownership looks at costs and ignores benefits
Type of benefit
The fact of life: time saved does not equal time worked
Use correction factors to adjust the estimate of time saved to a reasonable estimate of the value to the company
Range from 0.1 to 1 to adjust time saved to time worked
Estimate of productivity increase: 5%
(based on: direct survey and estimate)
Value of increase for 10 people @ $100K ea: $50,000
(use fully loaded cost)
Correction factor: 0.50
(Correct for inefficient transfer of time)
Expected benefit to company: $25,000
How will the benefit be achieved?
__ Reduction in staff or staff hours
__ Increase in productivity, limiting the need for more staff
__ Increase in profit to company
__ Gradual attrition over next 3 years (10%, 50%, 100%)
Worst-case benefit: $12,500
(In this case, assume 50% of initial estimate)
Commit to achievable milestones:
Target: $25,000 annual savings
Year 1: Reduce hourly cost by $2,500
Year 2: Reduce hourly cost by $12,500
Year 3: Reduce hourly cost by $25,000 or staff by one person
Assumption: No change in workload
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