west trax sap kpi of the month october 2014
TRANSCRIPT
West Trax SAP KPI of the Month – October 2014
Average Level of Standardisation in
the Manufacturing Sector = 54.8%
Standard software such as SAP is at its most productive when the available standard functionality
is used as optimally as possible. Individual solutions should only be resorted to where they deliver
a significant competitive advantage or when standard functionality cannot meet the requirements
of the business.
The KPI of the Month for October highlights that the level of standardisation found in
Manufacturing sector SAP systems analysed by West Trax was 54.8%. This benchmark is based on
279 system analyses.
i.e. On average 54.8% of the programs used in the systems in the Manufacturing sector were
standard programs or transactions. The remainder were custom code, third party products or
legacy programs. The Measured Best Practice (MBP) value recorded to date by West Trax was
83.5%. The Measured Worst Case (MWC) was just 28%. This wide variation in benchmark values
between MWC and MBP continues to highlight that many systems contain untapped potential to
significantly increase the use of already installed standard functionality and improve the ROI from
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. Technical upgrades often result in opportunities to re-
standardise being overlooked, leaving systems poorly positioned to exploit the benefits of best
practice business processes and new technologies such as the Cloud and SAP HANA®.
Find out how well your SAP systems measure up against West Trax benchmarks
email [email protected] or visit West Trax KPI Measurements and Benchmarking