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Not Upgrading To ECC 6.0?
To Delay An Upgrade Is A Valid Option.
To Do Nothing is Probably Not!
In the current difficult e...
Evidence suggests that in many cases this is not happening. The results of over 1,500
analyses conducted by West Trax indi...
By taking urgent action now they can make substantial business and IT savings, improve
transparency and position systems f...
System Modernisation
Package

Initial Diagnostic

Rapid Assessment Of Modernisation
Potential.

KPI Scan®

As Is Analysis,...
 Long response times due to system bottlenecks eliminated.
 Efficient utilisation of available resources.
 Elimination ...
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Not Upgrading To SAP ECC 6.0?

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In the current difficult economic climate many organisations have opted not to upgrade their SAP systems to ECC 6.0.

Whilst this choice may be an attractive way to relieve pressure on already tight IT budgets, to do nothing will almost certainly not be the most effective course of action for the business.

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Not Upgrading To SAP ECC 6.0?

  1. 1. Not Upgrading To ECC 6.0? To Delay An Upgrade Is A Valid Option. To Do Nothing is Probably Not! In the current difficult economic climate many organisations have opted not to upgrade their SAP systems to ECC 6.0. Others who felt under pressure to upgrade due to SAP’s support pricing policies may not have upgraded and opted for the Standard Support offering. Yet others have chosen to delay their upgrade project until the financial situation improves. Whilst these choices may be an attractive way to relieve pressure on already tight IT budgets, to do nothing will almost certainly not be the most effective course of action for the business. Having taken the decision not to upgrade CIO’s should seize the opportunity to modernise their systems to reduce costs and deliver increased value from the current implementation. Complex and expensive SAP landscapes and infrastructures rarely deliver their full potential to add value. Over time, constant changes in the process landscape erode optimisation and alignment, processes become less effective and redundant custom code accumulates. A lack of system transparency often masks ineffective processes and inefficient use of software. How does this come about? • • • • • • • All hardware and software is subject to constant changes. SAP too! Vendors routinely provide updates. Failure to install them exposes the business to unquantified risks. New users require authorisations, training etc. and change system usage. Restructuring, downsizing and M&A activities all generate changes in use. Suppliers’ requirements constantly change and must be addressed promptly. Additional customer requirements must be implemented in a timely manner. Changes in the market such as the current financial situation, new legal requirements and regulations drive system changes. Systems transparency is essential to expedite regular process landscape monitoring. Appropriate metrics and methodologies are required to enable early detection and correction of declining system optimisation and alignment. To respond to changing requirements and fully contribute to business success a SAP landscape needs to be regularly updated, re-optimised and re-aligned. 09.12.2013 Copyright West Trax International Ltd Page 1 of 5
  2. 2. Evidence suggests that in many cases this is not happening. The results of over 1,500 analyses conducted by West Trax indicate that 70% and more of the paid for, available, SAP Standard programs were not used. Up to 45% of the programs in analysed SAP systems were custom code. 40% or more of the custom programs were unused and 30% or more of the custom programs could be replaced by SAP Standard - without additional SAP costs. In many of the analysed systems the client had performed one or more technical upgrades over the preceding years and as a result had failed to take advantage of available extensions to standard SAP functionality. As a result, what were once essential customisations continue to be used and supported where they could have been replaced by standard code that is now present in the system. In other cases the standard code is used whilst the custom programs are unused but still maintained. And in some instances both the custom and standard code are used and supported with associated duplication of costs and workload. Comparisons of results by sector show that some organisations have found it possible to operate successfully with much higher levels of standardisation and less customisation. West Trax benchmark data confirms analysts’ views that in many SAP systems significant opportunities exist to reduce costs, improve business processes and contribute additional value. Having made the decision to delay an upgrade project CIO’s should exploit these opportunities to increase the effectiveness and efficiency of their SAP systems. Maintenance Cost Custom Code Actual > 300K – 2,600K Euro Potential Savings 30K – 500K Euro Ideal SAP Maintenance 17%+ Essential CC 20-30% Optional CC 50-70% Applications (Standard + CC) Optimisation Potential Seite 2 © W e s t T r a x D e u t s c h l a n d L t d .von 5 C o . K G & Seite 2 von 5
  3. 3. By taking urgent action now they can make substantial business and IT savings, improve transparency and position systems for future business opportunities. Investments of millions in ERP systems require appropriate metrics to verify business effectiveness of processes but current performance measures do not adequately reflect the contribution made to business success. Conventional tools and methods focus primarily on metrics associated with operational IT and system efficiency. e.g. SLA’s, project milestones. Additional metrics are required to evaluate the effective use of systems and processes in support of the business. Higher Standardisation Less Unused Customisation Better Performance Higher Usage Quality Optimised Enterprise Standardisation Performance Usage quality Efficiency KPI High Opti mise ® r Business Process Realisation in SAP Value creation/ ROI Realisable Increase In Added Value Present Added Value Purchase Install Rollout Production Upgrade Life cycle The West Trax SAP Modernisation Service employs a unique off-line analysis methodology. A combination of discrete KPI Service modules provides a complete “End to End” solution for clients wishing to optimise and modernise their SAP systems whilst delaying costly and time consuming upgrade projects. Seite 3 © W e s t T r a x D e u t s c h l a n d L t d .von 5 C o . K G & Seite 3 von 5
  4. 4. System Modernisation Package Initial Diagnostic Rapid Assessment Of Modernisation Potential. KPI Scan® As Is Analysis, Benchmark Comparisons, Improvement Potential, Action Plans. KPI Optimiser® Custom Code Detailed Custom Code Usage And Performance Analysis. KPI Optimiser® Business Processes Detailed Business Process Usage and Gap Analysis. KPI QA® Post Project KPI and Benchmark Reassessment, Trend Analysis. Deliverables  System optimisation KPI’s.  Identification of cost reduction and system optimisation potential.  Action plan development.  Calculation of implementation costs.  Determination of project ROI.  Market and Best Practice Benchmarks.  “Best SAP System Usage” Quality Certification. Benefits  Continuous cost reduction.  Optimised business processes increases quality of use.  Breaks within business process chains identified. Seite 4 © W e s t T r a x D e u t s c h l a n d L t d .von 5 C o . K G & Seite 4 von 5
  5. 5.  Long response times due to system bottlenecks eliminated.  Efficient utilisation of available resources.  Elimination of unused custom code immediately cuts maintenance workload and costs.  Full exploitation of available and relevant standard functionality.  Development of additional expensive, unnecessary custom code avoided.  Resources redeployed to added-value projects.  Avoidance of GRC exposures.  Early warning of re-training needs. To learn more about how the West Trax SAP Modernisation Service can help reduce costs and deliver increased value from current implementations please visit Modernisation or contact David Long at: dlong@westtrax.com call T+44 (0) 1989 780114, M: +44 (0) 7774 808694 About West Trax West Trax is a service provider delivering management and IT consulting services. Founded in 2003, the company combines many years of international experience in the professional services business with state-of-the-art technology. West Trax focuses on global SAP system optimisation. With KPI Scan®, KPI Optimiser®, and KPI QA® West Trax offers solutions that help to increase the effectiveness and efficiency of corporate processes and the performance of IT infrastructures. More detailed information can be found at www.westtrax.com. Seite 5 © W e s t T r a x D e u t s c h l a n d L t d .von 5 C o . K G & Seite 5 von 5

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