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The True Efficiency of SAP Systems in Germany

A current study conducted by West Trax Deutschland, together with Experton Group AG, has examined hidden potential savings in SAP systems.

• According to a current study, potential savings may amount to 2 million Euros per year
• Only 25 percent of in-house developments are intensively used

A current study conducted by West Trax Deutschland, together with Experton Group AG, has examined hidden potential savings in SAP systems. A total of 93 SAP systems in 69 companies and 14 industries were analyzed. The analysis had been designed to determine the real degree of systems usage considering key performance indicators (KPI’s) related to cost, productivity, performance and quality. KPI SCAN® for SAP – a methodology developed by West Trax Deutschland – was used to determine the potential savings, which may be as much as 2 million Euros per year.

A recent study conducted by the consulting company West Trax Deutschland Ltd together with Experton Group AG, an IT market research firm, has revealed that SAP user companies with more than 500 users in Germany misspend millions of Euros per year. Even smaller companies with up to 500 users may save around 500,000 Euros per year. Although the amount of potential savings varies greatly, depending on the respective line of business, the real cause for this situation is the same across all industries: a low degree of congruence between the software functionality maintained and actually used.

"Since in-house developments are very time-consuming and costly, they should only be employed where they help to ensure corporate competitiveness and no comparable standard software is available"?, says Diana Bohr, Chief Technology Officer at West Trax Deutschland. The study clearly reveals that only 25 percent of in-house developments within the surveyed companies were intensively used. More than one third of existing programs were never used, but were still maintained. A lack of system transparency prevents companies from identifying the gap between implemented and used functionality.

Figure: KPI - usage of in-house developments in SAP systems
Source: West Trax Deutschland

The KPI SCAN® methodology helps to save significant amounts of money in IT organizations. Such savings provide welcome relief for tight IT budgets, freeing up funds to bring forward work on other projects. "The values determined by the KPI SCAN® are so precise that we do not charge a fee in cases where the potential savings are les than 50,000 Euros"?, adds Diana Bohr.

While the KPI Scan® service measures the potential to add value in SAP systems, the Benchmark Express® detailed analysis service helps clients to optimize their systems, providing specific recommendations to increase added value, reduce project cost and improve business processes and system quality. Benchmark Express® can be leveraged in support of release upgrade, consolidation or outsourcing projects and may also help to achieve specific improvement goals. Please contact Diana Bohr to receive more detailed information on the study or on West Trax measurement and optimization tools.

Picture: Diana Bohr’s biography can be found at: www.westtrax.de/Bios/bio_dbohr.zip

The Company

West Trax Deutschland Ltd is a service provider, delivering management consulting and IT consulting services. Founded in 1999 as Bohr Consulting, the company combines many years of international experiences in the professional services business with state-of-the-art technology. With KPI SCAN®, Benchmark Express® and KPI SCAN® QA West Trax Deutschland offers solutions that help to increase the efficiency of corporate processes and the performance of IT infrastructures. West Trax Deutschland has a focus on global SAP system optimization. More detailed information can be found under www.westtrax.de