Business Value Of IT Within SAP Using GuiXT

© 2009 Synactive, Inc. GuiXT.com

Desktop ● Web UI ● Mobile ● Offline ● Developer

Business Value of Information Technology

How to Maximize your SAP ROI

S. Joe Khoei650-341-3310 x-112

[email protected]

www.

© 2009 Synactive, Inc. www.GuiXT.com


Business Challenge: Determining ROI for IT

Business Goals & Strategies

Information Technology Investment

71% of IT executives say CEOs & CFOs are demanding better ways to show how IT investments bring business value…

…Only 60% of companies measures the business value of IT─62% find it difficult to calculate the ROI

─52% say executives are “skeptical” of ROI results

─45% say metrics don’t adequately capture business value

Got ROI?

What is the best way to assess the value that IT delivers?What is the best way to assess the value that IT delivers?

Source: CIO Insight Survey 2006



Closing the ROI Gap: IT Business Value


Information Technology Investment

Measure IT’s Direct Contribution to Bottom Line

─Better market position

─Faster growth

─Greater operational efficiency

─Increased productivity

─Improved asset utilization

─Increased margin

IT Business ValueBenefits in monetary

terms that results fromIT products & services

What is the best way to measure IT Business Value?What is the best way to measure IT Business Value?



Headcount Management

Measuring ROI: Business Value Dials Working Capital

Value Dials are financial measurements of business value that map to the bottom line of the company



• Headcount Growth• Employee Productivity• Employee Turnover

• Days of Inventory• Days of Receivables

Expense Avoidance• Risk Avoidance • Materials Discounts• Unit & Other Cost Avoidance• System End of Life• Scrap Reduction• Factory Uptime

Revenue Increase• Time to Market• Optimize Existing Markets• Open New Markets• Cross-Selling• Vendor of Choice



Sample Business Value Dials




Value Dial Definition

Days of Inventory

Reduction in days of inventory lead to value in finished goods, work-in-process, or raw material inventories

(value of 1 day) x (days of inventory removed) x 15% (weighted average cost of capital)

Headcount Productivity

Gains in headcount efficiencies or effectiveness. Headcount is expected to produce more through these gains due to the additional time efficiencies.

(number of employees affected) x (time) x (average burden rate) x (50%)

System End-of-Life(EOL)

Removing unnecessary IT support and maintenance costs as a result of a new system upgrade or consolidation of multiple systems

Cost of maintaining legacy system



Business Challenge: Maximizing ROI for SAP


SAP Investment

Enterprise applications including ERP and CRM rank #2 in the list of top 10 technology priorities* recently…

…Most companies are not maximizing the business value from their investment with SAP **─58% cites that SAP meets expectations for increasing revenue

─Only 44% find SAP meets their ROI expectations

─Only 41% says SAP meets expectations for lowering their costs

Got ROI?

What is the best way to maximize current SAP investments?What is the best way to maximize current SAP investments?

*Gartner CIO Survey 2008 **CIO Insight 2008



Closing the ROI Gap: GuiXT


SAP Investment

Maximize SAP’s Direct Contribution to Bottom Line

─Increase revenue

─Streamline business processes

─Boost operational efficiency

─Accelerate delivery time

─Improve margins

─Reduce TCO

─Enjoy fast ROI

GuiXTSimplifies, clarifies, optimizes your

SAP ERP interfaces and maximizes your SAP ERP utilization

Immediately Boost Your IT Business Value with GuiXTImmediately Boost Your IT Business Value with GuiXT



Case Study #1: Top 10 Pharmaceutical Company

Accelerated delivery boosts revenue by $60M+Accelerated delivery boosts revenue by $60M+

Top 10 global pharmaceutical company that focuses on multiple therapy areas

Supply Chain Impact─Material Control & Monitoring─Streamlined Picking Process─Real-Time Inventory Consumption

Multiple initiatives compress time-to-market (value dial) from order to delivery by up to 50%



Tim

e p

erf

orm

task

(secon

ds)

Case Study #2: Manufacturing Company

Producer of 500,000+ tons of steel per year

Warehouse Operations Impact─Material Receipt Processing─Warehouse Staff Productivity─Shipment Processing

3000 time-consuming scans to receive & process coils daily (employee productivity)─Before GuiXT – 200 man-hrs/day─After GuiXT – 17 man-hrs/day

Reduced processing time achieves annual savings of $1.4MReduced processing time achieves annual savings of $1.4M



Case Study #3: Global Food Processing Company

Streamlined process decreased manufacturing cost by $2.02MStreamlined process decreased manufacturing cost by $2.02M

Global provider of food ingredients and products for food industry

Plant Operations Impact─Streamlined Supply Process─Assembly Operator Productivity

Six plants with multiple production lines in each facility, where operators needed per line decreased from 6 to 1 (headcount management)



Case Study #4: Global Life Sciences Company

Streamlined Order Processing Results in ~$3M Annual Savings Plus Increased SOX Compliance

Streamlined Order Processing Results in ~$3M Annual Savings Plus Increased SOX Compliance

Leading provider of systems, consumables and services for healthcare industry

Order Fulfillment Impact points─Order Processing─Staff Productivity

Velocity, quality, and compliance in 400 orders per day ranging from few hundred- to few hundred thousand dollars for each (risk avoidance, vendor of choice, days of inventory)

Maximizing ROI

Key Indicator Before GuiXT

After GuiXT

Impact

Processing Time

(per order)

4 minutes

3 minutes

25% faster

Order Processing

Staff

20 FTEs

15 FTEs 25% less

Average Cost for

Order Error

$20,000 $10,000 50% lower



Client Companies (partial)



About Synactive

• Creating SAP productivity gains since 1998• Founders:

- Dr. Gerhard Rodé -Initiated and developed the programming language ABAP in SAP AG (SAP employee #50)

- Thomas C. Ewe - Developed Merlin/GuiLib DLL and JavaGUI in SAP Labs

• Technology created in close cooperation with SAP and our clients. • GuiXT is bundled and shipped by SAP to all of their clients. • Our solutions address the practical needs of SAP users in Desktop,

Mobile, Web, and Offline environments.



Assessment# Milestone Description Who Timin

g1 Diagnostic A short assessment carried out to

understand the stage of efficiency of the target SAP processes.

Synactive with some key Business Unit managers

4 days

2 Determine Value

A rough guide assessment of the value that a GuiXT enhancement would provide to the business.

Synactive 4 days

3 Prioritize Prioritize enhancement opportunities

Synactive with some key Business Unit managers

1 day

4 Education Executive education session to review assessment benefits and options

Synactive with IT and Business Executives

1 day



Alternative Options

• Traditional Approach– By transaction– Site Licensing– Enterprise Licensing

• Merit Based Approach- Criteria for success/payment identified &

agreed upon- License fees higher than traditional approach

Business Value Of IT Within SAP Using GuiXT

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