How to Maximize the Benefits From Your SAP Investment

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How to Maximize the Benefits From Your SAP
Investment

• Jim Shepherd
• Senior Vice President
• AMR Research

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1. Extend your deployment

• Capitalize on the network effect
• Metcalfes Law
• The value of a system increases as the square of
  the number of users of the system
• Each incremental user, department, or location
  significantly increases the aggregate value of
  your SAP system

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2. Rationalize your application portfolio

• Integrating supporting 3rd party apps is a poor
  investment
• Heterogeneous systems
• Constrain process improvement
• Slow response to change
• Lower employee productivity
• Complicate reporting and analysis
• Functional breadth is why you bought from SAP in
  the first place!

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3. Consolidate systems processes

• Better internal control visibility
• Allow resource sharing leverage
• Reduce IT costs
• Enhance customer service
• Improve supply chain speed efficiency

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4. Improve business processes

• Design new end-to-end processes
• Capitalize on SAPs best practices
• Look for self-service and automation
  opportunities
• Extend processes to customers suppliers
• Develop organization metrics for continual
  process improvement

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Phases of Deployment
Value
Phase III Ongoing Improvement
Phase II Consolidation
Phase I Scattered Instances
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Typical Benefits Realization
500
450
400
350
300
Benefits (M)
250
200
150
100
50
0
IT Operating Expense
Reduction
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Process ImprovementStructure
One Company
Executive Committee CxOs
Program ManagementOffice
Program Director
Finance Director
IT Governance Council
Information Technology (IT)
CIO
Process Lead
Process Lead
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Benefits Require the Correct Metrics
High
Definition of Victory
3) Improved Process KPIs
2) System Adoption
Businesss Ability to Control
4) Actual Financial Returns
Measure for Accountability
Measure for Credibility
1) Schedule Budget
Low
ITs Ability to Control
High
Low
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5. Convert data to information

• Business monitoring intelligence
• Planning analysis
• Re-engineer decision making processes
• Push information to managers, users, customers,
  suppliers, etc.
• Take advantage of SAP products (BI, SEM, MIC,
  Portal, Analytics, Roles, etc.
• Investigate 100s of partner products

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6. Capitalize on SAPs RD investment

• You helped pay for it use it!
• SAP investing gt 1B per year
• New and improved functionality in existing
  products
• Enhanced vertical industry functionality
• New complementary products
• Better technology
• Learn whats new since you bought it

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7. Spend more on training education

• Application knowledge starts eroding immediately
• Establish formal user certification requirements
  enforce them
• Educate process leaders on new releases,
  products, best practices
• Employee education is a great investment

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8. Network, network, network

• 80,000 installations 12 million users lots of
  experience, best practices, and real credibility
• Try to connect with other SAP customers at
  executive, IT, and business process levels
• Focus on innovative business processes not how
  much are you spending