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The Value of Business Simplification Benchmarking Results and Analysis
May, 2015
© 2015 SAP AG. All rights reserved. 2PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Background
The following includes insights from an executive survey
on the “The Value of Business Simplification”
The survey was conducted at the SAPPHIRE Annual
Conference in May 2015
Survey results aggregated from 125 respondents
© 2015 SAP AG. All rights reserved. 3PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Key Findings
consider cost reduction to be the biggest benefit of
simplification 60%
expect process simplification to be the biggest
opportunity for simplification
68%
believe simplification is important for their organization
and 88% admit IT investment is important to achieve
simplification81%
agree that a clarity of strategy and management
drive is the most important driver for simplification
66%
© 2015 SAP AG. All rights reserved. 4PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Business simplification
“How important is Business Simplification in your organization today?; How important are IT investments for Simplification?”
Key Takeaway: 81% of respondents believe that business simplification is important for their organizations today; 88% of
respondents admit that IT investment is important for business simplification
46%
35%
15%
3% 1%
Need for business simplification
Top Strategic Importance Somewhat Important
Tactical Business Need Less Important
Not Important at all
52%36%
10%
2%
IT investment for simplification
Top Strategic Importance Somewhat Important
Tactical Business Need Less Important
Not Important at all
© 2015 SAP AG. All rights reserved. 5PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Drivers of simplification
“For succeeding in running simpler, how do you rate the importance of the following drivers? ”
Key Takeaway
68% respondents agree that clarity of strategy and senior management drive is the important driver for simplification
Clarity of Strategy and Senior Management Drive
To run simple you must have ..
Changing organizational processes
Changing supporting IT-systems
Changing organizational structures
6%
6%
2%
9%
9%
30.0%
15.0%
16.0%
17%
26%
21%
17%
18%
24%
28%
31%
50%
11%
32%
25%
NA 5-Not Important 4-Less important
3-Tactical Business Need 2-Somewhat Important 1-Top Strategic Importance
© 2015 SAP AG. All rights reserved. 6PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Benefits of simplification
Key Takeaway: Significant proportion of organizations believe that (1) Cost Reductions, (2) Revenue Growth, and (3)
Business Acceleration are the areas that are most benefited by the simplification
60.0%
45.0%44.0%38.0%
32.0%30.0%
Cost ReductionsRevenue GrowthBusinessAcceleration
CustomerSatisfaction/Loyalty
CompetitiveDifferentiation
Innovation
“Percentage of companies considering various areas as the top 2 areas benefited by simplification”
Source: SAP Performance Benchmarking (https://valuemanagement.sap.com)
© 2015 SAP AG. All rights reserved. 7PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Opportunities for simplification
Key Takeaway: Significant proportion of organizations believe that (1) Process simplification and (2) Decision
simplification are the biggest opportunities for simplification for them
36%38%39%
49%
66%
Product Portfoliosimplification
Go-to-Marketsimplification
Organizationalsimplification
DecisionSimplification
ProcessSimplification
“Percentage of companies considering various opportunities as the top 2 opportunities for simplification”
Source: SAP Performance Benchmarking (https://valuemanagement.sap.com)
© 2015 SAP AG. All rights reserved. 8PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Approach to simplification
Key Takeaway: 34% of organizations favor a hybrid transformation – transforming only select functions or LoBs
approach to achieve simplification while 31% and 29% favor top down driven and gradual transformation respectively.
31%
34%
29%
6%
Top-down driven transformation Hybrid transformation - transforming only select functions or LoBs
Gradual transformation across the organization Outsourced - Adopt cloud platforms andor outsourcing services
“What simplification approach do you favor for your organization?”
© 2015 SAP AG. All rights reserved. 9PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
Survey Demographics- By Industry
1%
1%
1%
1%
2%
2%
2%
2%
3%
3%
3%
3%
4%
4%
4%
4%
5%
6%
6%
7%
7%
10%
10%
10%
Mining
Sports & Entertainment
Telecommunications
Travel & Transport Hospitality
Engineering Construction & Operations
Insurance
Media
Mill Products
Aerospace and Defense
Automotive
Banking
Higher Education & Research
Chemicals
Healthcare
Public Sector
Utilities
Retail
Industrial Machinery & Components
Life Sciences
Oil & Gas
Wholesale Distribution
High Tech
Professional Services
Consumer Products
© 2015 SAP AG. All rights reserved. 10PublicSource: SAP Performance Benchmarking (https://valuemanagement.sap.com)
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