west trax kpi of the month april 2014
TRANSCRIPT
West Trax SAP KPI Of The Month – April 2014
The Average Level Of Standardisation
In The Steel Industry Is 70.7%
Standard software such as SAP is at its most productive when the available standard functionality
is used as optimally as possible. Custom solutions should only be resorted to when they deliver a
significant competitive advantage or when standard functionality cannot meet the requirements of
the business.
The KPI of the Month for April highlights that the level of standardisation found in steel industry
SAP systems analysed by West Trax was 70.7%%. This benchmark is based on 56 system
analyses.
i.e. On average 70.7% of the programs used in the systems in the steel sector were standard
programs or transactions. The remainder were custom code, third party products or legacy
programs. The Measured Best Practice (MBP) value recorded was 77.1%. The Measured Worst
Case (MWC) was just 49.9%. The wide variation in benchmark values between MWC and MBP
suggests that many systems contain untapped potential to significantly increase the use of already
installed standard functionality and improve the ROI from their SAP investments..
Most of the systems analysed by West Trax show significant underutilisation of major functional
components that are currently available in the systems and are incurring SAP license and
maintenance charges. Redundant or inefficiently 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 redundant custom code. 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.
To find out how your SAP systems measure up against these benchmarks please email
[email protected] or visit West Trax KPI Measurements and Benchmarking