Survey Results Methodology and evaluation procedure Questionnaire leveraging on 2004/2005 study with subsequent telephone interviews Purpose: evaluate the impact of SAP Business All-in-One, SAP Best Practices on sales and implementation project as well the impact of productization. Study duration: October 2006 to January 2007 Conducted by SME Solution Center Asia Pacific Japan Response Rate: 56% Main result: significant benefits Operational advantages: Faster deployment Safe, Predictable, Affordable Quick time to benefit Financial benefits: Reduced project costs Lower Total Cost of Ownership (TCO)
Survey Demographics From October 2006 to January 2007, 35 customers and partners in the Asia Pacific Japan Region were surveyed regarding the impact of SAP Business All-in-One and SAP Best Practices Solutions on sales, implementation and productization.
Objective of SAP Business All-in-One, SAP Best Practices Study Customer (MEI/MED) feedback on: Project Scope Deployment Efforts Savings Impact of Productization Partner Feedback on: Impact on Solution Building Enablement Evaluation and Sales Phase Deployment Productization Objective of study, a continuation of an SAP internal study from 2004 and 2005, was to further measure the impact of SAP Business All-in-One Solutions and SAP Best Practices productization in Asia Pacific Japan midsize enterprises. MEI and MED customers were evaluated as well as the role of the partner in successful sales and deployment.
What are the Needs of Midsize Companies? SMEs require just as much functionality as their enterprise big brothers. According to the Aberdeen Group study "Benchmarking ERP in SME Report," although SMEs require less complexity from their ERP solutions, they do require the same functionality. According to the study, small- to medium-sized enterprises use only 6 percent less functionality that the average functionality of 1,200 companies of all sizes. The report identifies two key reasons for high implementation rates of ERP among the SMe segment. First, the price performance of ERP and its underlying infrastructure, such as hardware and databases, has improved steadily over the past two decades. Additionally, new delivery models such as software as a service provides lower risk alternatives to any capital expenditures associated with acquiring and maintaining the software. Aberdeen Group study, "Benchmarking ERP in SMB Report”, December 2006
Characteristics of Midsize Enterprises Challenging Midsize Enterprises … Stay nimble and responsive Grow organically Expand aggressively but profitably Not differentiate between software and implementation Have small IT budgets Need quick & tangible benefits Demand high quality solution individually tailored to their needs Require localized and industry-specific solutions Have limited project resources Are worried about long and painful implementations Need a solution that can grow with their business We researched what SME companies want Extract of 2006 Survey with 1389 SME Companies in Asia Pacific
Survey Highlights Highlights 100% of respondents confirm SAP Business All-in-One, SAP Best Practices are: Proven and Stable; Easy to adapt; Enable Safe, Predictable and Affordable deployments. 100% of respondents confirm that SAP Business All-in-One, SAP Best Practices had a positive effect on their buying decision. Significant Customer Project Benefits Cost savings between 25K EUR and 150K EUR, average 45K. Only 50% of the consulting and customer resources required for deployment (partner/customer) as compared to a traditional implementation. 32% reduction in implementation timeframe. Time savings between 14 and 100 man days. Solution fit as high as 70% of customer requirements. Average project duration of 20 weeks. Reduction of 10 weeks by leveraging productization. 72% of customers and partners agree that SAP Business All-in-On, SAP Best Practices lowers TCO.
Solution Scope “Compared to other ERP solutions, we chose SAP because it has a huge functionality and scalability.” 90% of respondents implemented full scope SAP ERP solutions. They Integrate: Financials Controlling Sales Purchasing Manufacturing Logistics “…availability of preconfigured scenarios helped save time during the Blueprint and Realization stage.”
Solution Fit: Industry, Country, Customer Requirements The average pre-configured solution fit is 70%. This is a major decision criterion for customers.
SAP Business All-in-One, SAP Best Practices are… “The ROI for Customers is good. The solution and its deployment is safe, predictable and affordable.”
Impact of SAP Best Practices on a Laptop (Images) SAP Best Practices Images enable the demonstration of SAP ERP leveraging a country ERP Baseline or Industry SAP Best Practices live on site with a high end laptop. “SAP Images are very convincing and effective influenced my buying decision of the SAP Business All-in- One solution for our company.” “SAP Business All-in-One/SAP Best Practices laptop images are a convenient and consistent method of quickly providing a end to end demo system on- site for a new prospect.”
Influence of SAP Business All-in-One, SAP Best Practices in the Evaluation Phase 100% of the respondents found that SAP Business All-in-One, SAP Best practices had a positive effect on their sales and/or purchasing decision. “It is a mindset change, that SAP ERP can be deployed in a short timeframe at an affordable costs. We have done it with several customers ourselves, so we know it works.” - Supply Chain Consulting, Australia
Impact on Deployment – 32% Less Time and Effort The Average Reduction by utilizing SAP Business All-in-One, SAP Best Practices was 32% compared to “classic from scratch implementations.” Time saved was between 14 and 100 Man Days. Implementation Project PrepBlueprintRealization Go Live & Support -30% -50% -40% -20% Implementation -32% Implementation Process without SAP Best Practices Implementation Process using ASAP Focus/SAP Best Practices Final Prep -20% The average project core team in a SAP Business All-in-One, SAP Best Practices project consisted of 5 FTE. Nearly half of what is required for a non-SAP Business All-in-One, SAP Best Practices project.
Average Deployment of 20 weeks! 32% Reduction or 10 weeks by leveraging Productization! SAP Business All-in-One and SAP Best Practices enabled projects were delivered within an average of a 20 weeks project cycle. With a classic approach and no productization, the implementation would take 10 weeks longer in average!
Average Time Savings During Evaluation and Deployment The use of SAP Business All- in-One, SAP Best Practices contributed to a reduction in project costs for 100% of participants! Saving are estimated between 25,000 Euro and 150,000 Euro. Average savings of 45,000 Euro Project Phases Project Preparation Business Blueprint RealizationGo Live & Support Final Preparation Scope Coverage O% 100% SAP A1/BP Traditional Approach Overall Time Savings 32% -50% 25 days -40% 20 days -30% 15 days -20% 10 days -10% 5 days
Ranking of Success factors for the overall Project 1. 2. 3. Fixed Price Fixed Cost (Duration and Cost of Deployment) Productized Offering by SAP and its Partners Deployment Skills/Quality of SAP and its Partners What are the crucial criteria regarding the contribution to the success of the overall project and how would you rank them?
Midsize Enterprise Net New Names APJ 2006 38% more qualified SAP Business All-in-One (MEI) and 42% more SAP Best Practices (MED*) earnings in 2006 38% 42%
Tangible Success: Kautex Textron - China "SAP has the deep vertical industry understanding we are looking for as a long-term trusted partner for innovation- fueled growth.“ - Frank Jackelen, Global SAP Manager, Kautex t $$ shorter time to benefit! Shorter Payback Time Reduce Initial Investments Industry specific Accelerated Implementation & Reduced Risk Tailored Scope / Fast time to value 75% solution fit across all components from the very beginning for Kautex
Tangible Success: Inzi Controls Co. Ltd - Korea “With the ERP solution, stocks are thoroughly managed, reducing discrepancy between the computer data and the warehouse record. The sales, accounting and purchasing divisions now have shared objectives with a focus on the business profitability.” - Mr. Jang Hwan Jung, Director, Sales Department, INZI Controls Solutions & Services: SAP™ Business All-in-One Length of Implementation: 90 days Channel Partner: BizTech Consulting
Tangible Success: Hemas Holdings Ltd. – Sri Lanka “It is an important project for Hemas and will go far in providing the group with a competitive Edge.“ - Husein Esufally, CEO, Hemas Holdings Limited Rapid Implementation full scope within six months enabled by ASAP Focus including integration of Diverse Legacy Systems. The Classic Approach would have taken at least 9 months. Partner Siemens Tailored Scope / Fast time to value
Customer & Partner Statements (Extract) 100% of the total 35 survey respondents would use SAP Business All-in-One, SAP Best Practices again and confirm that they are: “Proven and Stable” “Easy to Adapt” “Enable safe, predictable and affordable deployments” “Without SAP Best Practices the final solution would have been more complex; Therefore the project was faster, the final solution is simpler, more flexible, and the processes are faster; it is therefore easier to maintain.“ “It streamlines the business processes and improves efficiency.” “Full Integrated Package, processes enable control and efficiency.” “SAP Business All-in-One did not only help with a quick deployment it also lowered our TCO substantially.” “Adoption of SAP Best Practices cuts the implementation time significantly.” “SAP Business All-in-One kept the implementation time short and the costs well within budget. A further benefit was that our employees were familiar with the terms and scenarios the solution employs. This gave them confidence and enabled them to make rapid progress."
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