2009 sap upgrade benchmark survey - tech communityhosteddocs.ittoolbox.com/upgrade_survey.pdf ·...

2009 SAP® Upgrade Survey

com.panayainc.www 2009Panaya Inc, ©

Panaya Inc.

2009 SAP® Upgrade Benchmark

Survey

Survey Results and Executive

Summary

For questions and additional information

e-mail [email protected] or visit www.panayainc.com



Table of Contents

Executive Summary............................................................................. 3

Respondent Demographics................................................................... 4

SAP System Sizing............................................................................... 6

SAP System Characteristics .................................................................. 7

Upgrade Goals .................................................................................. 10

Outsourcing and Use of Partners ........................................................ 11

Upgrade Challenges, Impact of the Economy....................................... 13

Upgrade Duration and Effort .............................................................. 14

Disclaimer and Trademark Notices...................................................... 17



Executive Summary

Upgrading the SAP system is a major undertaking for companies that run their business on SAP. Not only is the upgrade project intensive on resources, it is also a source of risk. Any system errors introduced during the upgrade progress could be severely disruptive to the company’s operations. This benchmark survey was conducted by Panaya to help companies that are planning an SAP upgrade validate their planning assumptions and compare them to those of other organizations. Survey results are based on 152 responses collected from European and North-American SAP customers and system integrators through a standardized online questionnaire during December of 2008. i Some of survey’s key findings include:

• The primary reasons cited for the upgrade are end of maintenance

(58%), followed by functional requirements (37%) and improving

usability (28%).

• The average overall project duration for an organization with less than 100 users is 26 weeks, while the average duration for an organization with over 10,000 users is 63 weeks.

• The top three upgrade challenges are estimating the upgrade project

cost/effort (40%), following by justifying the project budget (36%) and assessing the impact on existing solutions (31%).

• Most upgrade projects remain on schedule for 2009 despite the economic downturn. Overall, three out of every four projects remain on schedule, and only 11% are being delayed beyond

2009.

About Panaya

Panaya provides revolutionary Software as a Service (SaaS) for SAP Upgrades. Using Panaya's patented supercomputer technology, SAP professionals can negotiate version upgrades with minimal risk and cost. After a 20 minutes setup, Panaya's SAP Upgrade Simulation will:

• Show which custom programs will break as a result of an upgrade. • Explain exactly how to fix them. • Create the most efficient test plan. • Calculate the required budget the resources for the project.

To learn more, or apply for a free upgrade evaluation click here: http://www.panayainc.com/Free-Upgrade-Analysis-for-your-SAP.html



Respondent Demographics

The survey was completed by representatives of 134 companies that are either currently upgrading their systems or have plans for a future upgrade.

25%

43%

12%

16%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

In Process Next 6 months 6-12 months Over 12 months Unknown

Figure 1: Upgrade Planned Project Start

The vast majority (73%) of the survey respondents come from companies that are SAP customers and run their own business on the SAP system. The remaining 27% represent SAP-partner organizations that help other companies with their upgrade projects.

Consultant/SI27%

Customer73%

Figure 2: Respondents Relationship to SAP

Approximately two thirds of the respondents are from Europe, with the remainder representing North American companies.



Europe66%

North America34%

Figure 3: Respondents by Region

Customer organizations responding to the survey come from a variety of industries, with a particularly strong representation of the manufacturing sector.

2%

3%

4%

4%

5%

6%

6%

8%

11%

11%

13%

25%

Healthcare

Professional Services

Aerospace & Defense

Communications

Retail

Financial Services

Construction

Public Sector & Education

Utilities

High Tech

Other

Manufacturing

c

Figure 4: Responding Customers by Industry

Close to half of the responding customers come from smaller companies (revenues of less than one billion US dollars). 25% represent midsize

companies ($1-5B in revenues), while 33% represent large companies (revenues over 5 billion dollar).



Company Size (2007 Revenues in $US)

42%

25%

33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

<$1B $1B-5B >$5B

Figure 5: Responding Customers by Company Size

SAP System Sizing

Over half of the responding customer organizations operate more than one SAP production system, with some organizations operating over fifty systems.

46%

34%

15%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

One Two to Five Six to Ten Over Ten

Figure 6: Number of SAP Production Systems (Customer Organizations)

Close to half of the responding customer organizations (48%) have over 1,000 production users, with 14% reporting over 10,000 users and the largest organization with 200,000 users.



9%

42%

34%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1-100 101-1,000 1,001-10,000 Over 10,000

Figure 7: Number of SAP Production Users (Customer Organizations)

SAP System Characteristics

The vast majority of the respondents are currently using either version 4.6 or 4.7.

4%

33% 34%

19%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

4.0 4.6 4.7 ERP2004 Other

Figure 8: Current Version

The modules most commonly used by survey respondents are FI (96%) and CO (90%). Least used modules are PS (35%), QM (34%), and LE (29%).



34%

35%

47%

46%

87%

29%

57%

96%

90%

81%SD

QM

PS

PP

PM

MM

LE

HR

FI

CO

Figure 9: Number of SAP Production Users (Customer Organizations)

Just over half (51%) of the respondents use SAP Netweaver Components. Among those that use the Netweaver Components, BW/BI is the most commonly used (60%).

Figure 10: Components Used (% of those using components)



Over 39% of the respondents are using SAP industry solutions.

No61%

Yes39%

Figure 11: Use of Industry Solutions

Almost every organization (96%) has at least one interface from SAP to

another system. 55% of the organizations have more than ten interfaces, 32% are using over fifty interfaces, and 21% have over 100 different interfaces.

4%

41%

23%

11%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

None 1-10 11-50 51-100 >100

Figure 12: Number of Interfaces to Other Systems



Upgrade Goals

Top 3 Reasons for

Upgrade 1. End of

Maintenance

2. Functional Requirements

3. Improve Usability

The primary reasons cited for the upgrade project are End of Maintenance (58%), followed by Functional Requirements (37%) and Improving

Usability (28%).

5%

17%

17%

19%

28%

37%

58%

4%Other

Legal Compliance

Consolidation/Integration

Standardize Functionality

Leverage LatestTechnology

Improve Usability

Functional Requirements

End of Maintenance

Figure 13: Reasons for Upgrade (Top Two Selected)

Given that the majority of organizations are upgrading due to end of maintenance, it is not surprising to see that most (69%) are starting out with a Technical Upgrade. It is important to note that the majority of organizations (73%) do plan on functional or strategic enhancement

as part of the upgrade project, but most of them plan on doing it as a

second phase following the technical upgrade. ii



Technical upgrade only27%

Technical upgrade w /subsequentl functional or

strategic enhancements

42%

Functional upgrade (technical upgrade w ith deployment of

additional functionality)

18%

Strategic upgrade (technical upgrade

w ith strategic enhancements)

13%

Figure 14: Upgrade Type

Unicode conversion is an important goal for many organizations and highly recommended by SAP. Over half of the organizations (53%) surveyed are including Unicode conversion as part of their upgrade project.

Figure 15: Unicode Conversion Included in Upgrade Plan?

Outsourcing and Use of Partners

Almost all of the organizations surveyed outsource at least part of the

upgrade project work to third party partners, with only 12% of the organizations not using the help of any partner. 56% of the organizations outsource at least half of the project work.



88% of outsource at least part of the upgrade work. 56% outsource at least half of the work.

11%13%

5%

19%

10%8%

11%

5%2%

4%

12%

0%

5%

10%

15%

20%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of work outsourced

% o

f re

spo

nd

ents

Figure 16: Use of Outsourcing

Most Cited

Partners: 1. SAP 2. IBM 3. TCS 3. Accenture 5. Deloitte 5. Capgemini 7. HP 8. NEORIS 8. Logica

9. CGI

Many organizations use more than one partner. The most commonly cited partners are SAP, IBM, TCS, and Accenture.

4%

4%

4%

7%

9%

9%

11%

11%

18%

22%

CGI

Logica

NEORIS

HP

Deloitte

Capgemini

Accenture

TCS

IBM

SAP

Figure 17: Most Mentioned Partners

Other partners mentioned inlcude: ACS, AICON, Aral, Atos, Axon, BC, Bizaps & Roc, Blue Sof Consulting, BP, Capgemini, CGI, Dell, Deloitte, Diagonal, EDS, Esso, GDC, HP, Infosys, Itelligence, Jet, L&T, Logica, NEORIS, Novi Sad, Optimal Solutions, Oracle, Perfect for People, Realtech, Siemens, Spinnaker, Spring, Steria, TechOn Group, and T-Systems.



Upgrade Challenges, Impact of the Economy

Top 3 Challenges 1. Cost/Effort

Estimation

2. Justify Budget 3. Assess Impact

on Existing Solution

It is interesting to note that the top three challenges mentioned by survey respondents relate to the planning phases of the upgrade. Justifying a budget becomes more difficult when accurate estimate of the cost/effort as well as the impact on the existing solution are two major challenges.

4%

12%

12%

16%

22%

25%

31%

36%

40%

2%End-user Training

Other

IT Infrastructure/Sizing

Modification Adjustment

Project Management

Minimize Downtime

Efficient Testing

Assess Impact onExisting Solution

Justify Budget for Project

Cost/Effort Estimation

Figure 18: Upgrade Challenges (Top Two Selected)

Most upgrade projects remain on schedule for 2009 despite the economic downturn. Overall, three out of every four projects remain on schedule,

and only 11% are being delayed beyond 2009. At the same time, almost one out of three (28%) of the companies that are not delaying the upgrade are looking to complete the project with a lower budget.



Figure 19: Impact of the Economy on Project Plans

Upgrade Duration and Effort

Survey respondents reported overall project duration ranging from 4 weeks to 120 weeks (2+ years). Overall project duration is highly correlated to the number of production users. The average overall project duration for an organization with less than 100 users is 26 weeks, while the average duration for an organization with over 10,000 users is 63 weeks.

0

10

20

30

40

50

60

70

1-100 101-1,000 1,001-10,000 Over 10,000

Number of Production Users

Du

rati

on

(in

wee

ks) Cutover & Support

Cutover Preparations

Realization

Blueprint

Preparation

Figure 20: Average Project Duration by Stage and Number of Production Users



As can be seen in the chart, the most time-consuming stage is Realization, followed by Preparation. iii

The total effort invested in the upgrade project range from just a few days to

over 60,000 person days. Not surprisingly, the total effort of the project is also highly correlated to the number of production users. The average effort for organizations with less than 100 users is 395 person days, while the average for organizations with over 10,000 users is 13,516 days.

-

5,000

10,000

15,000

Production Users

Eff

ort

(in

per

son

day

s)

Average Effort 395 1,553 5,152 13,516

1-100 101-1,000 1,001-10,000 Over 10,000

Figure 21: Average Project Effort by Number of Production Users

System complexity also impacts the upgrade effort. For example, the use of Industry Solutions increases project effort by 15-550%.

The use of Industry Solutions increases project effort by 15-550%.

-

5,000

10,000

15,000

20,000

Production Users

Eff

ort (

in p

erso

n da

ys)

No Solutions 377 791 1,853 11,385

With Solutions 441 3,076 10,430 15,647

1-100 101-1,000 1,001-10,000 Over 10,000

Figure 22: Average Project Effort with and without Industry Solutions (by Number of Users)



Table of Figures

Figure 1: Upgrade Planned Project Start............................................................4

Figure 2: Respondents SAP Relationships ..........................................................4

Figure 3: Respondents by Region......................................................................5

Figure 4: Responding Customers by Industry.....................................................5

Figure 5: Responding Customers by Company Size ............................................6

Figure 6: Number of SAP Production Systems (Customer Organizations) .............6

Figure 7: Number of SAP Production Users (Customer Organizations) .................7

Figure 8: Current Version .................................................................................7

Figure 9: Modules Used....................................................................................7

Figure 10: Components Used............................................................................8

Figure 11: Use of Industry Solutions .................................................................9

Figure 12: Number of Interfaces to Other Systems.............................................9

Figure 13: Reasons for Upgrade (Top Two Selected)........................................10

Figure 14: Upgrade Type................................................................................11

Figure 15: Unicode Conversion Included in Upgrade Plan?................................11

Figure 16: Use of Outsourcing ........................................................................12

Figure 17: Most Mentioned Partners................................................................12

Figure 18: Upgrade Challenges (Top Two Selected) .........................................13

Figure 19: Impact of the Economy on Project Plans .........................................14

Figure 20: Average Project Duration by Stage and Number of Production Users.14

Figure 21: Average Project Effort by Number of Production Users .....................15

Figure 22: Average Project Effort with and without Industry Solutions (by

Number of Users) ..........................................................................................15



Disclaimer and Trademark Notices This report is provided by Panaya Inc. It is completely independent of and not affiliated

with SAP AG.

SAP is a registered trademark of SAP AG. SAP and other SAP products and services

mentioned herein as well as their respective logos are trademarks or registered trademarks

of SAP AG in Germany and in several other countries. All other product and service names

mentioned are the trademarks of their respective companies.

DISCLAIMER OF WARRANTY

Panaya Inc. makes no representation or warranties, either express or implied by or with

respect to anything in this document, and shall not be liable for any implied warranties of

merchantability or fitness for a particular purpose or for any indirect special or

consequential damages.

COPYRIGHT NOTICE

No part of this publication may be reproduced, stored in a retrieval system or transmitted,

in any form or by any means, photocopying, recording or otherwise, without prior written

consent of Panaya Inc. No patent liability is assumed with respect to the use of the

information contained herein. While every precaution has been taken in the preparation of

this publication, Panaya Inc. assumes no responsibility for errors or omissions. This

publication is subject to change without notice.

Copyright © Panaya Inc. All rights reserved.



i The survey can be accessed online at http://panayainc.sap-upgrade-survey.sgizmo.com

ii For more on the types of SAP upgrades, see http://www.panayainc.com/Articles/SAP-Upgrade-Types.html

iii These are SAP-defined upgrade stages, as described in the ASAP methodology.

2009 sap upgrade benchmark survey - tech communityhosteddocs.ittoolbox.com/upgrade_survey.pdf ·...

Documents