User groups spell out KPIs behind SAP u-turn

SAP’s decisionto delay price increases to its Enterprise Support marks a historic breakthrough, according to Alan Bowling, chairman of the UK and Ireland SAP User Group.

Bowling, together with user group leaders in SUGEN, the SAP user group executive network, has spent the last 10 months arguing with SAP about the terms and conditions of its proposed price hike for Enterprise Support.

The outcome, announced today, marks a “win-win” for both the software company and its customers, said Bowling.

“This is a major leap forward for user groups. It demonstrates that by working together, and working intelligently with vendor, things can change.

“There is still a price rise,” said Bowling, “but it is over longer period and the process is being measured against KPIs.”

The KPIs are grouped into four categories and represent key customer business value-drivers, which were defined after discussions with customers.

The main KPIs in each category are:

Business Continuity:

  • Increased business solution availability.
  • Reduced amount of work related to all SAP incidents.

Business Process Performance:

  • Reduced number of emergency changes.
  • Reduced amount of work for post-go-live stabilization and optimization.
  • Reduced number of failed changes, which must be backed out of business solutions in productive use.

Protection of Investment:

  • Deployment of the latest innovation for application and technology stacks.
  • Reduced maintenance costs by elimination of unnecessary modifications.

Total Cost of Operations:

  • Decreased hardware costs (e.g. CPU).
  • Reduced total work of deploying support and enhancement packages.
  • Reduced total work of deploying support and enhancement packages.

There will not be a price rise unless the user group agree with SAP that there has been demonstrable improvement on these measures.

“This is ground breaking,” said Bowling. “Other vendors should be worried, that they will be challenged to match this.”

UK and Ireland SAP User Group Annual Conference23 and 24 November, Manchester, More details available here

Copyright © 2009 IDG Communications, Inc.

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