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SAP AG 2010. SLS_Keynote / Page 1

Reduction on TCO Landscape

September 21st, 2010

SAP

IT Tr ans f o r m at ion Ser v ic es

SAP Lounge, Vilvoorde

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SAP AG 2010. SLS_Keynote / Page 2

Agenda

12:00 Sandwich Lunch

13:00 Introduction on ITTS strategy(Danny Van Heck VP Structural Transformation Services SAP)

13:30 External view on TCO reduction and how it can help your business(Prof Dr Guido Dedene Professor in Management Information Systems KUL)

14:15SAP ITTS offerings and the benefits for the customer(Uwe Kachler Expert for reduction of cost for SAP operations SAP)

15:00Customer experiences and references

(Markus Helfen and Andreas Wentz)

15:45 Closing statement winners TCO quickscan(Jurgen Thielemans Business Development Manager SAP Belux)

16:00 Cocktail

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SAP AG 2010. SLS_Keynote / Page 3

Danny van HeckVP Structural Transformation Services

Reduction on TCO Landscape

September 21st, 2010

SAP

IT Tr ans f o r m at ion Ser v ic es

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SAP AG 2010. SLS_Keynote / Page 4

ITTS Strategy = Strengthen the CIO position:

Assure smooth E2E operations in a holistic Business Continuity approach

Benchmark IT costs & drive TCO reduction

Leverage the existing IT-specific knowledge of the business to innovate

Adopt the IT solutions flexible to fast changing business demands incl. M&A

Transform the IT Department from a Cost- into a Profit Center

Manage and decrease IT complexity,

Improve User Acceptance & Satisfaction

Provide guidelines and roadmaps to address the top IT Trends

The CIO (department) is the ITTS focus:

Provide Value and Innovation to the Business

Bridge the gap from Business- to IT Transformation

Run IT as a Business

The CIO Challenge:Bridge the gap from Business- to IT Transformation

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SAP AG 2010. SLS_Keynote / Page 5

Maximize Customer Success

IT TRANSFORMATION SERVICES

Become THE trusted advisor and partnerof choice in

the area of IT-Transformation

Focus on assuring smooth E2E operations and lowering

the TCO for SAP centric IT solutions

Bridge the gap from Business Transformation to IT

Transformation to MAXIMIZE CUSTOMER SUCCESS

Help CIOs reduce TCOHelp Customers become betterenterprises

Deliver tangible Business Value

Efficient operations of IT

Agile IT following business

strategies

Build streamlined infrastructure

and data models to enable

foresight & insight business

decisions

Ensure business continuity

Support business innovations

from IT

Help CIO to become a valuable

business partner

TCO-focused engagements; TCO

service bundle

Safeguarding / MaxAttention

Application Lifecycle

Management / Solution Manager

Virtualization / Cloud Computing

ITTS StrategyMaximize Customer Success

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SAP AG 2010. SLS_Keynote / Page 6

ITTS Customer references

ITTS

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DesignStrategy Transition Continual

Improvement

Operation

Operations

Transformation

Services (TCO)

Technology

Transformation

Services

Structural

Transformation

Services

Clearly addressing customer requirements and customer pain points

IT TRANSFORMATION SERVICES

Identifying areas of operational efficiency

Establishing operational standards and processes

Providing post production support

Establishing an operational plan for your applications

Create testing strategies that includes automation and improved quality

Leveraging the latest technology stack

Best practices for virtualization and cloud

Minimize downtime when upgrading

Knowledgeable experts to help you every step of the way

Standardize , consolidate and harmonize information

Providing SAP Landscape Transformation software to manage business changes

Designing an architecture roadmap to minimize complexity

Holistic ITTS Portfolio

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DesignStrategy Transition Continual

Improvement

Operation

Structural

Transformation

Services

IT Architecture & IT Governance Services

IT Risk Management & IT Compliance

IT Organizational Change Management

Enterprise Content Management

Mergers & Acquisitions

Data & Process Harmonization

Realizes business driven changes, results in lean setup, and agility

Landscape Consolidation & Transformation

Information Lifecycle Management

Structural Transformation Services

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SAP ERP SAP BI SAP CRM/SRMSAP SCM

As-is situation Vision

Corporate restructuringChange organizational units in SAP

accordingly

Global SAP ITlandscape

Individualsolutions

Mergers & AcquisitionsAcquisition, joint venture

DivestituresBusiness area will be organized as

independent company, subsidiary is spun off,

part of company will be sold

Business process optimizationAdapt processes in SAP sbvgystem,

Unified accounting, Master data cleansing

Consolidate IT landscapesMerge systems, harmonize system landscape,

provide cross-system functions

System Landscape Optimization Business Scenarios

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DesignStrategy Transition Continual

Improvement

Operation

Operations

Transformation

Services

Operations & TCO Improvements

IT Service Management

Post Production Support & Application Management Services

SAP MaxAttention Services

Testing & Quality Mgmt Services

Application Lifecycle Management

Realizes efficiency and reduces TCO, results in operational excellence

Operations Transformation Services

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Improve Partnership Between Business and IT

Increase transparency through centralized change management and clearly definedchange processes

Re-direct resources to address business innovation demands

Continue stabilization of implemented solution as end users gain comfort

Increase end user satisfaction

Increase Customer Satisfaction and Business Value

Transform business perception due to reliability of IT solutions

Mitigate risks and manage business continuity

Benchmark support processes and operations based on industry lessons learned

Refine customer satisfaction baseline

Reduce Total Cost of Operations

Reduce time to resolve incidents and correct data inconsistencies

Realize benefits of lower TCO through right sourcing strategy

Avoid expensive incidents through better quality in operations

Optimize processes and operations performance

Measure and improve on KPIs

Customer ValueSAP as advisor for optimized operations

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DesignStrategy Transition Continual

Improvement

Operation

Technology

Transformation

Services

Technology Rollout & Optimization Services

Virtualization & Cloud Services

SAP Safeguarding Services

Minimized Downtime Services

Technical Implementation & Upgrade Services

Technical Process Integration

Business Process Orchestration

Realizes state of the art technology, enables functionality

Technology Transformation Services

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SAP Services

for implementing

virtualization:

SAP Virtualization Workshop for firstevaluation

Building up prototypes

Accompanying full scale implementation

SAP Cloud Computing Workshop Operations concept adaptation, review

and optimization

Operations on virtualized

environment

Conventional Operations on

native environment

Operating in a cloud

environment

Industrializing your SAP Operations

change in

your operations concept

change in

your operations concept

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Contacts

Luc Dutranoit

SAP Belgium-Luxembourg

Terhulpsesteenweg 1661170 Brussels

T +32/2/674 6-466

M +32/486/136-466

[email protected]

www.sap.com/belux/services/consulting/

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15

TCO-Reduction for ICT-landscapes:

The return of TCO-management ?

Prof. Dr. Guido DedeneKatholieke Universiteit Leuven

Faculty of Business & Economics

E-mail [email protected]

University of AmsterdamVlerick Leuven Gent Management School

21 september 2010

SAP Lounge Brussels

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16

Who is Guido Dedene?

2006 IBM Europe Service Science Management & Engineering Award

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Integration

Alignment

ManagementDiscipline

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Components of T.C.O.

Server versus Client ?

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Why Standardization ?

2

1 nn

Choosing standards is a Nash-game

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Return on Infrastructure Management

Volume & Complexity

Low Level

ICT/SManage-

ment High Level

ICT/SManage-

ment

Phd-research U. Woudstra, UVA

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Infrastructure concentration

Managementcentralisation

Appl.

Devel.

skillsloc

alisa

tion

Concentrated

Distributed Decentralised Centralised

Dispersed

Localised

DCD

CCD

CDD

CDL

DDL

DCLCCL

Why/What Centralization ?

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-0,01

0

0,01

0,02

0,03

0,04

0,05

-40 -20 0 20 40 60 80 100 120

High Quality projectArchitecture

Medium Quality projectArchitecture

COSTOVERRUN

-0,005

0

0,005

0,01

0,015

0,02

0,025

0,03

0,035

0,04

-40 -20 0 20 40 60 80 100 120

High Quality projectArchitecture

Medium Quality projectArchitecture

TIMEOVERRUN

Phd-research R. Slot, UVA

Return on Architecture

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Return on ALIGNMENT

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Return on ALIGNMENT

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Operations: the Client side...

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TCO Reduction Example

XE-Learning environment can reachmore students

XFlexible maintenance of the E-learningsoftware and exercises

XLower Software Distribution Costs

XBetter reliability of the E-Learningapplication

XXFlexible Access to the E-Learningapplication (any thin client WebBrowser)

XNo Installation Support Costs

XNo Installation Costs

XXLower Software Costs

XLower Equipment Costs

EducationalStaff

StudentPotential TCO reductions

Party

XE-Learning environment can reachmore students

XFlexible maintenance of the E-learningsoftware and exercises

XLower Software Distribution Costs

XBetter reliability of the E-Learningapplication

XXFlexible Access to the E-Learningapplication (any thin client WebBrowser)

XNo Installation Support Costs

XNo Installation Costs

XXLower Software Costs

XLower Equipment Costs

EducationalStaff

StudentPotential TCO reductions

Party

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Operations: the Server side...

MF base UNIX

Rehost

2-tier C/S 3-tier C/SMF base UNIX

Rehost

2-tier C/S 3-tier C/S

Support/Admin

SW

HW

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28

The role of Infrastructure inthe ICT-landscape

Weill and Broadbent2003

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29

The ICT-Portfolio

drives the strategic ambition

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30

Collective Professionalism

requires common baselines

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32

CIO versus CEO Agenda

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21 September 2010

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Agenda

Agenda Topics

SAP TCO Approach and Understanding

IT Transformation Services Portfolio

Customer Examples

Start with an Assessment

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How SAP Can Help to Reduce Customer TCO

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SAP TCO Guide

http://www.sap.com/belux/services/consulting/run/tco-

topics/index.epx

Download

Contents Describes more than 25 measures for

reducing TCO, each of which details an

area within the business or IT

landscape that customers can analyze

and significantly improve Intended to help CIOs and IT Managers

to reduce TCO and re-gain more

flexibility and innovation power,

leveraging SAP products and services

The Challenge to manage IT Cost & Value

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The Challenge to manage IT Cost & ValueContribution at the same Time is difficult

Different locations

Different countries

Different languages

Different time zones Central vs. distributed

Different applications

Different technologies

Different vendors

Point-to-point integration Custom-made solutions

Many SupplierWidespread Operations Heterogeneous Solutions

Complex BusinessProcesses

Mixed TechnologiesIT Business Management

Gap

How to reduce TCO?

1960s 1970s 1980s 1990s 2000s

1,000

800

600

400

200

0

IT Spend

IT Demand

IT Management Capability ITbusiness

management

gap

SAP T t l C t f O hi (TCO) M d l

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SAP Total Cost of Ownership (TCO) ModelSelected Key Cost Driver

Implementation

Hardware/Software

Invest

Operations

Upgrade Projects*

Continuous

Improvement Projects

End User Usage

Hardware/

Software Ongoing CostSAPTCO

System Operations

Application Operations

End User Operations

System Software

Technical Infrastructure

Application Software

Business Setup

Testing

Process Design

Project Management

Training

Organizational Change

Technical Setup

Continuous Business Improvements

Continuous Technical Improvements

Rollouts

Productivity Loss

System Upgrade

System Software

Technical Infrastructure

Application Software

Application Upgrade*

Source:

SAP TCO FRAMEWORK,SAP AG, 2005

Server Sizing: Over-sizing

Out-dated server concept: no use of virtualization

SAN - Investments

Level of complexity

Missing alignment with the business

Moving targets

Level of customization

Missing/ insufficient org. change management

Bad project management

High share of manual testing efforts

Cost allocation: wrong cost allocation or cost model

Back-Up: full backup instead of incremental

Outsourcing: price is too high

Outsourcing: SAN prices too high

Wrong Data Center set up

Problem Management

Incident Management

Proprietary Developments

IT processes: double work

Contract: structure of contract doesnt fit

Help Desk: First solution rate is too low

Data quality

User authorization Change Management

Alignment with business

Test Management

Old SAP systems

Training

Test Management

Proprietary Developments

Heterogenic application landscape

*Caution: Usually an upgrade project goes along with new functionality this is in the topic Continuous Business Improvements.

Cost Driver

Invest Costs

OngoingCosts

Legend:

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Indirect

costs (N/A)

Ongoing / recurring costs (66%) Infrequently

recurringcosts (18%)

Initial / non-recurring costs

(16%)

HW/SW(ongoing cost)

14%

Operation

35%

Cont Improve-ment Projects

17%

UpgradeProjects

18%

End UserUsage

HW/SW(initial costs)

10%

Implementation6%

SAP TCO Model100%

Typical TCO Cost SplitBiggest cost blocks are allocated in Operations

Quelle: VMS TCO Analysis SAP 2010Notes: %s are weighted averages across global survey participants.

Monitoring

Admin

SW Change Management

Service Desk & Incident Mgmt.

General/Admin Costs for Appl.Operations

Problem Management

4%

3%

12%

4%

10%

2%

Sample TCO Pattern

To be TCO Pattern

TCO ReductionHardware/SoftwareInvest

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TCO ReductionWhat are the Key Lever?

Technologyinnovation(hardware/

software)

High

Medium

Low

HighMediumLow

Today Tomorrow

Key Lever

Financial

Impact

Future

Realizationtime and effort

A Complexity Reduction # Technologies

# Applications

# Systems and interfaces

# Data

B Execution Excellence Improve the things you are

already doing

Lean IT: reduce waste

C Sourcing Optimization Optimize IT supply chain

(hardware/ software vendor,service provider)

D Business-IT Alignment Run IT as a business

Establish IT as partner of business

Complexity Reduction

System Landscape

ConsolidationConsolidation of Data

Center

Decommission of legacy

systems

Reduction of number of

application

Return to Standard (Out of

the box solution);

Modification Clearing

Master Data Harmonization

Execution Excellence

Infrastructure Virtualization

Minimize downtime (e.g.during upgrades)

Right sizing backup/

recovery

Archiving optimization

Storage Cost Reduction

Performance Optimization

Automate Job Scheduling

Standardize and automate

Testing

Implement best practice

ITSM processes (ITIL)Establish CCoE

Establish Super User

Concept

IT Service Productization

Virtual Training & e-Learning

Accelerated & Lean

Implementation

Accelerated & Lean

Upgrades

Output Management

Sourcing Optimization

Integrated Service

Delivery (ISD) IT Shared Service Center

Co-Sourcing (Captive

Outsourcing/ Partnering)

Outsourcing/ Outtasking

Business Process

Outsourcing

Business IT Alignment

Joint Business-IT Planning

Joint IT-Business ProjectPortfolio

Eliminate/ Limitate

Shadow/ Hidden IT

Service Level Rightsizing/

SLA optimization

SAPTotal

CostofOwnership

Operations

Implementation

ContinuousImprovement Projects

Hardware/ SoftwareOngoingCost

UpgradeProjects*

EndUser Usage

ComplexityReduction

Busi-ness ITAlign-mentSourc-

ingOptimi-zation

ExecutionExcellence

Source: Christian Jaerschke, SAP TCO Guide 2010

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SAP STRATEGY

SAP Product

StrategySAP Services

Strategy

Fast Growth Services will drive the transformation Integrated services capacities with strong technicalfocus

SAPBusiness

Objects Hub(SBO)

ITTransformation Services

(ITTS)

BusinessTransforma

tionServices

(BTS)

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We help you to manage your transformation efforts effectively

Addressing your IT Transformation needs with SAP

IT Transformation Services - ITTS

SAP 2008 / Page 44

ITIL v3 Services Lifecycle

Strategy Design Transition ContinualImprovement

Operation

StructuralTransformationServices

OperationsTransformationServices

TechnologyTransformationServices

Realizes business driven changes,

results in lean setup, and agility

Realizes efficiency and reduces TCO,

results in operational excellence

Realizes business value from state of the art technology,

Enables functionality

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Questions to be Answered Challenges to be

Overcome

How to realize business-driven changes in IT?

Merging, acquiring, or restructuring?

Creating a technology strategy that maps the

business strategy?

Trying to manage complexity brought to IT by

mapping complex business scenarios?

Need reliable data sources for your businessdecisions?

Want to run IT like an agile business?

Organize your IT to match business, risk mitigation,

and quality needs?

Forced to access historical date quickly bust at low

cost for compliance reasons?

Manage data like a company asset?

Identifying the most valuable areas for change is key for a successful transformation. SAP can help

you to select the right ones.

SAP IT Transformation Services

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Realizes business driven changes, results in lean setup, and agility

SAP IT Transformation Services

Structural Transformation Services

Strategy Design Transition OperationContinual

Improvement

StructuralTransformationServices

IT Architecture and Governance

IT Compliance and Risk Management

IT Organizational Change Management

Enterprise Content Management

Mergers and Acquisitions

Landscape Consolidation and Transformation

Information Lifecycle Management

Data and Process Harmonization

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Questions to be Answered Challenges to be

Overcome

How to realize efficiency and reduce TCO in IT operations?

Creating operational efficiency for your SAP

solutions?

Lack of operational standards?

Want to learn how accelerated SAP, Run SAP, SAP

Application Lifecycle Management and SAP Solution

Manager play together? Testing taking too long?

Need a solution to deliver IT services professionally?

Want to have low cost of operations build into your

solution at the very beginning?

Do you want your software vendor to care about or

even manage your solution after go live?

Need maximum support attention of your business-

critical solutions?

Identifying the most valuable areas for change is key for a successful transformation. SAP can help

you to select the right ones.

SAP IT Transformation Services

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Realizes efficiency and reduces TCO, results in operational excellence

Strategy Design Transition OperationContinual

Improvement

OperationsTransformationServices

Operations and TCO

Improvement

IT Service Management

Post-Production Support and Application

Management

SAP MaxAttention

Testing and Quality Management

Application Lifecycle Management

SAP IT Transformation Services

Operations Transformation Services

Q ti t b A d Ch ll t b

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Questions to be Answered Challenges to be

Overcome

How to realize value out of state of the art technology?

Building technology that can adapt to changing

business needs?

Managing SAP apps in virtualized or cloud

environments?

Minimize downtime when upgrading?

How to bring SAP solutions onto mobile devices?

Need to technically orchestrate your business

solutions?

Want to safeguard your implementation project from a

technology perspective?

Need technology experts that know SAP solutions

best?

Identifying the most valuable areas for change is key for a successful transformation. SAP can help

you to select the right ones.

SAP IT Transformation Services -

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Realizes business value from state of the art technology, enables functionality

Strategy Design Transition OperationContinualImprovement

TechnologyTransformationServices

Technology Rollout and Optimization

Virtualization and Cloud Transformation

SAP Safeguarding

Downtime Minimization

Technical Implementation and Upgrade

Technical Process Integration

Business Process Orchestration

SAP IT Transformation Services -

Technology Transformation Services

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C t TCO P f P i t

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Customer TCO Proof PointsHow did other customers manage IT Costs & Value Contribution at the same

time

Reduced disk

requirements in

nonproduction landscape

by 65%

Reduced TCO by 20% with

SAP Application Management

Services

Reduced the monitoring effort

by at least 50% with automated

Business Process Monitoring

Approximately 50% reduction

in power required for datacenter hardware and cooling

Max cost savings and

minimum downtime during IT

Landscape consolidation

project

Boustead Petroleum Marketing Reduces TCO

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Boustead Petroleum Marketing Reduces TCO

With SAP Application Management Services

Challenges and Opportunities

Streamline multiple, day-to-day

enterprise tasks Support integrated standard

functionality for industry-specificprocesses in areas such asprocurement, transportation, anddistribution

Objective

World-class outsourced support

for small, lean IT team managingnew SAP enterprise resourceplanning (ERP) software

Implementation Highlights

Remote, second-level support for100 hours per month and 125users

Transparent service-levelagreements with response time ofless than 60 minutes for highestpriority issues

On-site knowledge transfer

QUICK FACTS

Boustead Petroleum Marketing Sdn. Bhd.

Headquarters: Kuala Lumpur, Malaysia

Industries: Oil and gas

Products and services: Gasoline and diesel

fuel, liquid petroleum gas, and engine

lubricants

Revenue: US$450 million

Employees: 200

Web site: www.bhpetrol.com.my SAP solution and services: SAP Application

Management Services; SAP Consulting

Implementation Partner: SAP Consulting

The SAP Application ManagementServices allowed us to significantlyreduce our SAP support headcountsand cost while maintaining a highlevel of end-user satisfaction. As aresult we achieved a total cost ofownership reduction of at least20%.

Wong Voon Pui,Head of IT & Card Services, Boustead PetroleumMarketing Sdn. Bhd.

Why SAP Services

Direct support from software vendor

Direct channel to SAP know-how,with access to a field of 1,300consultants from SAP Consulting,the SAP Active Global Supportorganization, and SAP development

Seamless collaboration betweenSAP Application ManagementServices and the other SAP support

groups to provide single point ofaccountability to customer

24x7 access to the SAP customerservice center

Key Benefits

Reduced TCO by at least 20%

Maintained high level of customer

satisfaction Reduced risk of business

interruption

Incurred predictable costs andfinancial transparency

Reduced time spent processingcustomer rebates from several days

each month to about an hour

Customer Example: Basell

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Customer Example: Basell

Basell is the world's largest producer of polypropylene and advanced

polyolefins products. Basell, together with its joint ventures, has

manufacturing facilities around the world and sells products in more

than 120 countries.

Objectives and Customer Challenge

Master 24/7 support challenge to run SAP system (APO 24/7,

EBP 16/5)

Fully automated APO Monitoring

Monitoring concept for entire solution in corporation with Mercury

SAP Solution

24/7 SAP Application Management Services for APO, and 16/5

SAP Application Management Services for EBP

Setup and operating of APO Business Process Monitoring via

SAP Solution Manager

Value

TCO reduction due to BPM Monitoring and simplification of

certain business processes and adjustments within the

application

Stable, reliable and 7x24 hours available APO related logistics

processes

Basell

Basell could reduce the

monitoring effort by at least 50%

after implementing the

automated Business Process

Monitoring. Our entire supply

chain is now running smoother.

Thomas Dillenberger,Customer Center Basell

With SAP, weve reduced our

support expenses dramatically

and operating costs as well. Weachieved ROI after just 15

months. We are on the right

track with our outsourcing

strategy.

Basell VP

of IT Global Application Management

Titl

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SAP 2007 / Page55

Title

First level

Second level

Third level

Fourth level

Fifth level

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What Service fits best to your situation?

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What Service fits best to your situation?

Service Coverage Description

TCO Quick

ScanAssessment

Scan via SAP TCO

methodology andIdentify IT CostSaving Potentials

SAP TCO Quick Scan helps clients to discover IT-cost

saving potential, identify areas for improvement anddefine an action plan to realize cost savings leveraging

proven SAP best practices, services, solutions and

support know-how. This methodology involves setting up

a joint customerSAP task force, gathering data on-site

on the TCO challenges, and conducting workshops and

interviews to analyze major IT cost drivers and identify IT

cost-saving and optimization opportunities.

.

RunSAP

Scope

Assessment

Use RunSAP toimplement SAP E2EStandards and Best

Practices forOperations

The RunSAP scope assessment delivers a fit-gap

analysis of the as-is IT operations processes and

organization against SAP Standards for Solution

Operations E2E.A common understanding of optimization areas will be

outlined and agreement on the scope of a potential

RunSAP project will be achieved. The goal of the

delivered service is the creation of an initial project plan

proposal for the identified optimization areas, including

work packages, timelines, training courses, and

estimation of work effort.

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The SAP TCO Quick Scan helps clients to discover IT-cost saving potential, identify areas for improvement and definean action plan to realize cost savings leveraging proven SAP best practices, services, solutions and support know-

how.

What is the individual TCO

situation?

How does your IT compare to the

market on key KPIs?

What are the key areas to realize IT

cost savings?

How can SAP contribute?

Key Questions

Overview of TCO trends

Benchmarking of key KPIs

Transparent as-is situation

High level IT Cost Saving &

Optimization Opportunities

Next Steps/ Proposal for further

cooperation to realize cost savings

Deliverables

Benefit from large SAP/ ASUG

benchmarking data base .

Standardized approach and practice

proven methodologies.

Benefits

Selected Key Performance Indicator Portfolio of TCO Reduction MeasuresKey Lever

Realization

Time & Effort

FinancialImpact

HIGH

MEDIUM

LOW

HIGHMEDIUMLOW

B.11

D4

A.1 A.2

A.3

A.4

A.5B.1

B.2

B.3

B.4

B.5

B.6 B.7

B.8

B.9

B.12

C.3

A.6

B.15

C.2

C.5

C.1

D1

D2

D3C.4B.14

B.13

B.10

First QuartileBetween Average and First QuartileBelow Average Outlier

Ranking:

(n = 13)

Type Metric CustomerPeer Group

Avg. Q1

ITInvestments

IT Spend as % of Revenue (incl. depreciation)

SAP Spend as % of IT Spend

SAP Ongoing Support & Maintenance Only Spendas a % of Total SAP Spend

Efficiency

SAP Support Cost per Active User

Support Equivalent FTE per 100 Active Users

Complexity

Number of Critical Interfaces

Number of Production Instances

RealizationTime & Effort

FinancialImpact

HIGH

MEDIUM

LOW

HIGHMEDIUMLOW

KEY LEVER

TODAY

Business

IT

Alignment

Sourcing

Optimization

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Executive alignment, common understanding and agreement on objectives, scope and

deliverables

Set-up joint Customer SAP task force

High Level Approach to discover IT Cost Savings Opportunities

Initialization0

Data Collection Analysis Action Plan

Benchmarking

Gather pain points

Task

Analysis of major IT cost drivers

Identify IT Cost Saving &

Optimization Opportunities

Define high level recommendation

Provide indication on how to realize

IT Cost Saving & Optimization

Potential

Develop high level roadmap

1 2 3

Method SAP TCO Benchmarking Survey

Interviews to better understand

survey results where needed!

Benchmark Strategies for

improvements

TCO Reduction Repository

Onside Workshops

TCO Reduction portfolio

SAP Service portfolio

Onside Workshops

Short-term Medium-term Long-term Horizon

TCOTopic2

TCOTopic1

TCO Topic 5TCO Topic 4TCO Topic 3

Example

Example

Example

Example

Example

Example

ExampleExample

Example

Example

Example

Example

Example

Example

RunSAP Scope Assessment

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RunSAP Scope Assessment

Assessment & Scoping drives the establishment of baseline for installing Run SAP components

Design & Set up follow Assessment to install the selected components

Handover is the start of the knowledge transfer back to customer support organization.

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ContactLuc Dutranoit

SAP Belgium-Luxembourg

Terhulpsesteenweg 1661170 Brussels

T +32/2/674 6-466

M +32/486/136-466

[email protected]

www.sap.com/belux/services/consulting/