Which SAP System's Integrator Best Delivers on Clients' Cost Reduction Goals?

A major research study on the SAP systems integration marketplace was recently completed by Performance Monitor, an independent market research consulting firm. One of the objectives of this research was to measure the effectiveness of the leading SAP system integrators at helping their clients attain the specific goals of their project. There are ten goals included within the scope of this research:

• Increase revenue
• Consolidate or replace IT systems
• Implement scalable, adaptable systems
• Improve business process
• Meet regulatory requirements
• Streamline financial management
• Reduce IT costs
• Reduce other business costs
• Reduce production costs
• Reduce supplier costs

Clients provided an assessment of their provider's performance with respect to the specific goals of their project. Clients rated provider performance using the following scale...

• Falling far short of expectations
• Falling just short of expectations
• Meeting expectations
• Slightly exceeding expectations
• Far exceeding expectations

The chart below shows the results across 301 SAP projects completed during 2006. Attaining the cost reduction goals is a challenge, as these four goals are also among the more difficult goals to achieve. The research reveals that each of the leading SAP systems integrators has their own respective strengths and weaknesses in terms of overall delivery, and this holds true for the cost reduction goals, as well.

The balance of this article will focus on the SAP systems integrators with the highest level of meeting or exceeding client expectations on the four cost reduction goals studied. These results are based on 301 SAP systems integration projects completed during 2006.

Reduce IT Costs

Of all the goals studied, clients report that reducing IT costs was the most difficult goal to attain. SAP Consulting and IBM are the two firms with the highest level of client goal attainment for reducing IT costs.

Reduce Supplier Costs

Of the four cost reduction goals, six of the seven providers received very similar client ratings. One provider, however, stood out with the strongest performance for reducing supplier costs - Deloitte. Accenture and BearingPoint tied for the second highest level of goal attainment.

Reduce Production Costs

Of all the goals studied, clients report the widest range of experiences in terms of goal attainment for reducing production costs. There is a 22% difference in goal attainment between the providers with the highest and lowest levels of goal attainment. Deloitte and IBM clients report the highest levels of goal attainment for reducing production costs.

Reduce Other Business Costs

Only two SAP systems integrators receive above average ratings for meeting or exceeding client expectations with respect to reducing other business costs - BearingPoint and Deloitte.

Achieving cost reductions for SAP systems integration projects is difficult, but attainable. Clients should be sure to identify the key areas where cost savings are targeted, measure performance prior to starting their SAP project, and then build appropriate measurement systems into the project plan.

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