West Trax SAP KPI of the Month – February 2016
Average Percentage of Frequently Used Custom Code in
SAP Systems in the Finance Sector = 13%
Custom code programs are very costly and time consuming for organizations using SAP.
They should only be used when they increase the competitiveness of the company and
no comparable standard functionality is available. However, reality shows that many
production systems contain a variety of customization which is not actually used in
operations and thus rarely delivers value. Rather it unnecessarily inflates the cost of the
system. A lack of transparency prevents companies recognizing this gap between
implemented and unused functionality.
Against this background, the KPI of the Month for February highlights the average
percentage of custom code that is frequently used in the Finance industry. This currently
stands at only 13%. That is, on average, just 13% of customized programs and
transactions in SAP systems in the Finance sector are used on a daily basis.
This benchmark is based on 53 system analyses.
Most of the systems analysed by West Trax show significant under-utilisation of major
functional components that are currently available in the systems and are incurring SAP
license and maintenance charges. Redundant or infrequently used custom code,
underutilisation of SAP standard software and a lack of awareness of available standard
functionality, all inflate the already substantial costs associated with SAP system
operations and projects.
Many organisations continue to support extensively customised systems or are burdened
with substantial overheads due to unnecessary custom code. Technical upgrades often
result in opportunities to re-standardise being overlooked. Such systems are poorly
positioned to exploit the benefits of best practice business processes and new
technologies such as the Cloud and SAP HANA®. As a result the business advantages
and added-value expected from their strategic investments in SAP are often unrealised.
The consequences include lower productivity, increased costs, reduced profitability,
compliance exposures and customer dissatisfaction.
Find out how well your SAP systems measure up against West Trax benchmarks
email firstname.lastname@example.org or visit West Trax KPI Measurements and Benchmarking