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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
http://www.google.de/imgres?imgurl=http://www.logolook.de/wp-content/uploads/Deutsche_Post-Logo.png&imgrefurl=http://www.logolook.de/2010/03/deutsche-post-logo-wenn-der-postmann-dreimal-klingelt/&usg=__eEqzhdctwcOKUImsblJCtFR3_N8=&h=145&w=605&sz=11&hl=de&start=1&zoom=1&itbs=1&tbnid=1b9MP5UrQkZP7M:&tbnh=32&tbnw=135&prev=/images?q=Deutsche+Post+logo&hl=de&gbv=2&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.h-c-kaffeestudio.de/assets/images/Siemens-logo.png&imgrefurl=http://www.h-c-kaffeestudio.de/html/online_shop.html&usg=__f6lkmClhraLquGK6sgxhr7rhv-4=&h=177&w=744&sz=10&hl=de&start=2&zoom=1&itbs=1&tbnid=_dgdTpdDyH2-qM:&tbnh=34&tbnw=141&prev=/images?q=Siemens+logo&hl=de&gbv=2&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.vub.ac.be/mari/images/logo%27s%20sponsors/Sara_Lee_logo.jpg&imgrefurl=http://www.vub.ac.be/mari/POCA2008.html&usg=__NKJePHGMMlCjtWo3KMJ0VM2aKqw=&h=410&w=1100&sz=138&hl=de&start=1&zoom=1&itbs=1&tbnid=XiN48fVOQ_eRaM:&tbnh=56&tbnw=150&prev=/images?q=Sara+Lee+logo&hl=de&gbv=2&tbs=isch:1http://www.google.de/imgres?imgurl=http://upload.wikimedia.org/wikipedia/de/thumb/2/20/T-Systems_Logo.svg/800px-T-Systems_Logo.svg.png&imgrefurl=http://de.wikipedia.org/wiki/Datei:T-Systems_Logo.svg&usg=__l-xjX4y0E1bHZr5HAoKMnzVX9_k=&h=166&w=800&sz=17&hl=de&start=3&zoom=1&itbs=1&tbnid=qPBjSqhDzqCsWM:&tbnh=30&tbnw=143&prev=/images?q=T-Systems+logo&hl=de&gbv=2&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.coachings.net/files/122/upload/16loreal_logo.png&imgrefurl=http://www.coachings.net/de/5840-Referenzen&usg=__f4TgA-QjIPxnmfXCPTJLiGjfyM0=&h=145&w=800&sz=10&hl=de&start=13&zoom=1&itbs=1&tbnid=uuLiwAFcaiYyWM:&tbnh=26&tbnw=143&prev=/images?q=Loreal+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.escooter.de/HerculesBikes/hercules_logo.gif&imgrefurl=http://www.escooter.de/HerculesBikes/emove_Hercules.html&usg=__S5EGFS0TdOi-Gck1VeCeO0i9ctI=&h=51&w=273&sz=3&hl=de&start=3&zoom=1&itbs=1&tbnid=yGUf97ceePYZeM:&tbnh=21&tbnw=113&prev=/images?q=Hercules+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.beerprofits.com/progressivegrocer/photos/stylus/119894-KRAFT-FOODS-LOGO-sm.jpg&imgrefurl=http://www.beerprofits.com/progressivegrocer/content_display/features/e3iff920e6ff97162ae31a42c2ddc03b534&usg=__rFg-FkuQqD6E6TJMCZpNGJ6ILuE=&h=300&w=300&sz=10&hl=de&start=8&zoom=1&itbs=1&tbnid=ihwOJHZCcoKB-M:&tbnh=116&tbnw=116&prev=/images?q=Kraftfoods+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.hochtief.de/hochtief/img/bildarchiv/prev/logos/hochtieflogo4c_120x100.jpg&imgrefurl=http://www.hochtief.de/hochtief/6001.jhtml&usg=__xWYqSWf80l-4raXzzDD7e2ajXrg=&h=200&w=360&sz=15&hl=de&start=3&zoom=1&itbs=1&tbnid=lb1-90iAraYPbM:&tbnh=67&tbnw=121&prev=/images?q=Hochtief+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.medcon.ag/img/m+w.jpg&imgrefurl=http://www.medcon.ag/pharma-ethisch&usg=__HSRuz27ZKpMVYEpz0QOi9ogXm60=&h=70&w=199&sz=10&hl=de&start=9&zoom=1&itbs=1&tbnid=yIxAt6DcqpODdM:&tbnh=37&tbnw=104&prev=/images?q=m+w+dental+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://upload.wikimedia.org/wikipedia/de/thumb/c/c3/%C3%9CWAG_Logo.svg/180px-%C3%9CWAG_Logo.svg.png&imgrefurl=http://de.wikipedia.org/wiki/%C3%9Cberlandwerk_Fulda&usg=__dvwTIITPJJQ9PYNDQr4vjXpkI5g=&h=177&w=180&sz=9&hl=de&start=4&zoom=1&itbs=1&tbnid=iWPZbiFih6f3yM:&tbnh=99&tbnw=101&prev=/images?q=%C3%BCwag+logo&hl=de&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://www.muki-riedbrig.ch/Sponsoren/merz_logo_150.gif&imgrefurl=http://www.muki-riedbrig.ch/links.htm&usg=__zUbDHKgiwitK3FupAKF-6EJ4c9M=&h=145&w=150&sz=5&hl=de&start=3&zoom=1&itbs=1&tbnid=x8BYWlPyPS_wRM:&tbnh=93&tbnw=96&prev=/images?q=merz+logo&hl=de&sa=G&gbv=2&as_st=y&tbs=isch:1http://www.google.de/imgres?imgurl=http://coastaltrading.biz/img/familymart.jpg&imgrefurl=http://coastaltrading.biz/string/2007/03/&usg=__BUYkVnbr7euaLfsZrs-atkADkSU=&h=243&w=885&sz=21&hl=de&start=8&zoom=1&itbs=1&tbnid=OAGgaehiuu_L5M:&tbnh=40&tbnw=146&prev=/images?q=Family+Mart+logo&hl=de&sa=G&gbv=2&as_st=y&tbs=isch:1,isz:m,ift:png7/30/2019 20100921 TCO Reduction 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
Luc.dutranoit@sap.com
www.sap.com/belux/services/consulting/
http://www.sap.com/belux/services/consulting/http://www.sap.com/belux/services/consulting/7/30/2019 20100921 TCO Reduction ITTS
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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 guido.dedene@econ.kuleuven.be
University of AmsterdamVlerick Leuven Gent Management School
21 september 2010
SAP Lounge Brussels
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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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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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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
http://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epxhttp://www.sap.com/belux/services/consulting/run/tco-topics/index.epx7/30/2019 20100921 TCO Reduction ITTS
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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
Luc.dutranoit@sap.com
www.sap.com/belux/services/consulting/
http://www.sap.com/belux/services/consulting/http://www.sap.com/belux/services/consulting/