in collaboration with

A Clear View on Cutting the

Total Cost of Ownership of
your SAP System
How to Add Business Value and Benefit
from Immediate Cost Savings
Reduce the TCO of your
SAP System Through Upgrades
Adding Business Value
and Reducing the
Have you upgraded your SAP system
yet? SAP Business Suite 7 has been
available since May 2009 and if you
‘‘
Lifetime Cost of your haven’t already upgraded, then we can
help make the case.
SAP System
There are many compelling reasons
why you should upgrade your
SAP system. In today’s challenging
economic climate even those
organisations that have successfully
weathered the storm recognise the
need to derive maximum value from
their investments. And, as newer ERP
versions are released, the older ones
become more costly to maintain and
to extend.
Get it right and the latest SAP upgrade
will help you to reduce the total cost
of ownership (TCO) of your system
with standard software, more cost-
effective hardware and a platform that
has the flexibility to meet the needs of
the business.
When you see results like
clients saving over £10m in
a single year, or reducing five-
year hardware costs by 55%,
or cutting the time to deliver
new SAP services from six to
two months, you realise how
rare it is that an opportunity like
this comes along – a chance
to consider not just the
efficiency of the SAP system
itself, but also to target
the costs associated with
the complete SAP lifecycle
– databases, hardware,
implementation, support...
That’s why I believe that it
is so important to seize the
opportunity with both hands.
It’s also why I believe that
Capgemini is uniquely placed
to help your business share in
the benefits that upgrading
’’
SAP should bring.
David Lowson
Head of SAP,
Capgemini Technology Services
3
Total Cost of Ownership
SAP as an organisation has publicly
positioned TCO as one of the main
issues to tackle in helping customers
improve the efficiency of their IT
systems and solutions. However, TCO
isn’t just about the efficiency of your
SAP system. It concerns the total
costs that occur during the lifecycle
of a deployed technology solution.
These range from your hardware
and software investments to the
implementation of your solution, the
ongoing operational costs, continuous
improvement costs and your
investment in upgrade projects.
4
The message is clear: to achieve
a lower TCO you need to look at
your SAP ERP system at every level.
Your SAP upgrade presents you
with the ideal opportunity to adopt
this more holistic approach as you
seek to reduce the TCO of your
technology environment.
Making the Case
The TCO argument makes a strong
case for change. At Capgemini we
recognise that many organisations
need this compelling business case
in order to counter the negative
perceptions that are preventing
SAP customers from upgrading.
These all too familiar barriers to
change include:
■■ The potential for business
disruption caused by an upgrade
and the amount of customisation
that will be required to meet
specific business need;
■■ The IT department being seen as an
overhead, not a business enabler;
■■ A lack of defined upgrade strategy
so SAP is viewed as out of date;
■■ Upgrades are seen as highly
expensive at a time when budgets
are being squeezed.
However, with TCO as your starting
point, you can address these
challenges. Furthermore, it is not
the only argument for change. An
upgrade is also about achieving
functional excellence and assuring
maintenance and compliance
throughout the system lifetime –
all vital for a top performing IT
organisation. In addition, delaying an
upgrade increases the risk of falling
behind competitors in functionality
and agility.
As one of the four largest global
SAP System Integrators, Capgemini
works in partnership with both
SAP and hardware vendors, such
as IBM, to ensure these barriers to
change are removed. We reduce the
cost of your SAP upgrade and ensure
every implementation we support
allows our clients to reduce total cost
of ownership.

Supporting Your Upgrade
SAP Business Suite 7 has excellent
functionality, such as the
Customer Relationship Management
(SAP CRM 7.0) application and a
much improved user interface. It is
SAP’s answer to helping companies
survive and thrive in the new
economic reality. With Capgemini as
your implementation partner, you
will ensure that your upgrade puts
you on a path where you can
enhance components of your SAP
solution cost effectively, quickly and
with confidence.
What’s more, your upgrade will be the
first step to creating the foundation
for leveraging the benefits of SAP
Business Suite 7:
Upgrading allows you to build on
■■
your existing investment, including
SAP skills, best practices and
expertise developed over the years;
Upgrading your SAP ERP system
■■
provides value for your company
by adding new functionality
to support your business,
automating business processes and
incorporating best practices;
■■ Your upgrade should include the
latest SAP Enhancement Packages
to minimise effort and maximise
benefits. You can start to upgrade
specific processes instead of doing
traditional upgrades, and continue
to increase your footprint in SAP
Business Suite 7;
in collaboration with
■■ Upgrading gives you the benefit SOA
of the simplified User Experience SAP Strategy, using latest
in SAP Business Suite, leading architecture, such as Services-
to high user productivity (more Oriented Architecture (SOA),
transactions in less time) and increases the flexibility of SAP to
higher end-user satisfaction. meet the needs of the business
today and tomorrow. SAP’s SOA
Deliver More Value provides services-based, enterprise-
to the Business scale business solutions that offer
The primary driver for your SAP increased levels of adaptability,
upgrade is to deliver more value flexibility, and openness. Based
to the business and with the latest on the SAP NetWeaver platform,
release you will achieve this in a SOA moves IT architectures step-
number of ways: by-step to dramatically higher
levels of adaptability, underpinning
Cost Savings
innovation and providing an
You will drive out costs immediately
undeniable business rationale for
through better support of business
moving to web-enabled services that
areas such as Procurement, Manager
reduce the total cost of ownership.
Self-Service, Employee Self-Service
and Supplier Portals. Support for all
Exploiting Information
these business areas can be achieved
Your upgrade offers you the
with a minimum of customisation, and
opportunity to exploit the latest
thus less cost, thanks to greater use of
features and capabilities of the SAP
standard SAP features that will make
NetWeaver Business Intelligence
your system more flexible than many
and SAP NetWeaver Master Data
older, heavily customised systems.
Management components. In addition,
SAP’s acquisition of Business Objects
Innovation
offers you the ideal opportunity to
There are more than 300 functional
scrutinise your information collateral
improvements in SAP Business
and exploit the new features within the
Suite 7. Better processes, adaptable
overall toolset. Capgemini has been
architecture and enterprise service
working closely with SAP in this area.
enablement will lead to improved
productivity through better
information working, new user
interfaces, improved role-based access
and interactive forms.
5
Save Costs in Your Upgrade
Upgrading your SAP system in
partnership with Capgemini will
ensure that you yield a rapid return
on investment and spread the risk of
change. Our extensive experience of
upgrading over a million SAP users
in multiple clients is just one way in
which we help you save costs in your
upgrade. Others include:
SAP Upgrade Factory
& Rightshore®
Our SAP offshore centre of excellence
uses the Capgemini Rightshore®
methodology, enabling us to provide
you with the optimum use of the
right resources at just the right time.
This minimises costs and risks, while
ensuring the highest project quality.
Affordable Subscription Model
You can spread the cost of your
upgrade investment and subsequent
support with one of our flexible
commercial models. Our subscription
model allows you to pay on a regular
basis, e.g. monthly or quarterly, rather
than paying for everything up front.
Delivery Assurance
Our accelerated delivery methodology
offers you the assurance of ROI in
just one year.
Reduce Your SAP
Lifetime Costs
You’ll start to accrue cost savings
straight away and these savings will
continue throughout the lifetime of
your upgraded SAP system.
6
Application Management Flexibility
from Capgemini Easier to deploy Enhancement
More effective application management Packages for SAP will make the
is possible over the system lifetime business more flexible to change going
as a result of SAP’s increased use forward. You will future-proof your
of standard features that require business as the heavily customised
less costly and resource consuming older systems are upgraded using the
customisation over time. Capgemini new standard SAP features that are
uses the latest, standardised platform more flexible as well as cheaper and
to run your SAP systems for you after easier to maintain.
your upgrade. As well as lowering the
cost of your application management, De-risk for the Future
this removes the task of internal SAP Business Suite 7 offers a different
resourcing and system responsibility. platform on which future upgrades
It also gives you the assurance that and enhancements in the long term
your SAP system is being managed by should be more straightforward. SAP
people with a deep understanding of Enhancement Packages offering the
SAP and all its functionalities, ensuring scalability required to take the risk
you gain optimum use of existing out of your IT investment.
and new features to deliver maximum
business value.
Getting results
Upgrades supported by Capgemini have enabled our clients to:
■■ Reduce bespoke objects from over 1000 to only ~35, (largely forms/financial reports);
■■ Remove previous customisations, reduce the cost of ownership and enable the
implementation of new functionality. One Capgemini client saw a return of over £10m
in savings per year;
■■ Reduce application maintenance costs by between 20-40%;
■■ Reduce time to deliver new SAP services from six months to two months.
■■ SOA allows easy incorporation of SAP services within overall SAP strategy enabling
agility and innovation;
■■ Gain control of major cost elements and change the trading model to suit the new
environment by adopting SAP Business Intelligence functionality as part of the SAP
ERP upgrade;
■■ Ensure a much more user-friendly interface and a far greater adherence to business
process as a result of the additional usability of the enterprise portal;
■■ Simplify SAP landscape reducing instances and interfaces by 50%;
■■ Increased ease of use in SAP ERP allows management of key resources in SAP after
many years of system processing and non-compliance;
■■ Five year hardware savings of 55% from SAP R/3 4.6c to SAP ERP 6.0.
 in collaboration with

The Journey
with Capgemini

‘‘
So how do you get started? How Capgemini offers a solid mix
do you ensure your SAP journey to of technical expertise, strategy
reduced TCO and enhanced flexibility consulting, and ongoing
really does yield the anticipated results, maintenance, support, and
with lower costs, improved processes, hosting... and has the ability to

’’
refreshed hardware and a move to a deliver value for money.
more collaborative way of working?
The Forrester WaveTM
Capgemini can help. A SAP partner
SAP Implementation Providers
since 1993 and a SAP Pinnacle Awards
Q3 2009
2008 winner, we will ensure you
derive huge business benefit from your
adoption of the latest SAP release.

To find out how Capgemini can

work with you to reduce the TCO of
your SAP system, talk to us and we
will help you define your business
case and project justification – a key
Capgemini differentiator in the SAP
upgrade process – and give you a
view of the ‘art of the possible’.

In partnership with IBM

SAP’s own production and development requirements run on IBM software and IBM’s
DB2 9 is SAP’s preferred and recommended database for its current generation of
solution. Capgemini has a Global Alliance with IBM that keeps our clients ahead of the
curve with cutting-edge technology and industry-specific solutions.

With our proven expertise in implementing SAP applications on IBM infrastructure, we help to
optimise total cost of ownership by streamlining processes, infrastructure and operations.

Your SAP upgrade in partnership with Capgemini, SAP and IBM presents you with an
opportunity to renew your infrastructure, migrate to a single DB2 database platform and
benefit from:
■■ IBM’s experience and expertise as a launch partner for SAP Business Suite 7;
■■ An adaptive infrastructure with powerful management tools that gives you the agility to
change quickly with the business needs in line with the promise of SOA;
■■ Reduced business risk by migrating all SAP applications onto IBM DB2, to reduce
complexity, manage your SAP applications more efficiently and cut the cost of your
ERP environment;
■■ Refreshed hardware that provides more performance for lower cost, lower maintenance
and smaller footprint management capability to reduce TCO;
■■ High availability for mission-critical SAP.

7

About Capgemini and the
Collaborative Business Experience
Capgemini, one of the
world’s foremost providers
of consulting, technology and
outsourcing services, enables its clients
to transform and perform through
technologies. Capgemini provides its
clients with insights and capabilities
that boost their freedom to achieve
superior results through a unique way
of working, the Collaborative Business
ExperienceTM . The Group relies on
its global delivery model called
For more information about Capgemini’s SAP upgrade support service, please contact:
David Lowson
Vice President, SAP
Capgemini Technology Services
david.lowson@capgemini.com
+44 870 904 4748
Capgemini UK
76-88 Wardour Street
London
W1F 0UU
Phone +44 20 7735 0800
www.uk.capgemini.com
TM
Rightshore®, which aims to get
the right balance of the best talent
from multiple locations, working
as one team to create and deliver
the optimum solution for clients.
Present in more than 30 countries,
Capgemini reported 2009 global
revenues of EUR 8.4 billion and
employs 90,000 people worldwide.
More information is available at
www.uk.capgemini.com
Rightshore® is a trademark belonging to Capgemini
Anne Cave-Penney
SAP Alliance Director
Capgemini Technology Services
anne.cave-penney@capgemini.com
+44 870 366 0729