west trax sap kpi of the month january 2014
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West Trax SAP KPI Of The Month – January 2014
Average Daily Use Of Available Custom Code in the
Chemical Sector: 16.1%
Custom Code programs are very time-consuming and costly for organisations using SAP. They
should only be used when they enhance competitiveness or when comparable standard
functionality is not available. But the reality is that in many production systems a variety of
customised programs are only used infrequently in operations and thus rarely deliver value.
Rather, they inflate the cost of the system unnecessarily. Due to a lack of transparency a gap
exists between system functions that are implemented and those that are actually used and this
often goes unrecognised.
Against this background the KPI of the Month for January highlights the average percentage of
custom code that is frequently used in the Manufacturing industry. This currently stands at only
16.1%.
i.e. on average just 16.1% of customised programs and transactions in SAP systems in the
Chemicals sector are used on a daily basis.
This benchmark is based on 279 system analyses.
Standard software such as SAP is at its most productive when the available standard functionality
is used as optimally as possible. Custom solutions should only be resorted to when they deliver a
significant competitive advantage or when standard functionality cannot meet the requirements of
the business.
Most of the systems analysed by West Trax show significant underutilisation of major functional
components that are currently available in the systems and are incurring SAP license and
maintenance charges. Redundant or inefficiently used custom code, underutilised standard
potential and a lack of awareness of available standard functionality all inflate the already
substantial costs associated with SAP system operations and projects.
Many organisations continue to support extensively customised systems or are burdened with
substantial overheads due to redundant custom code. As a result the business advantages and
added-value expected from their strategic investments in SAP are often unrealised. The
consequences include lower productivity, increased costs, reduced profitability, compliance
exposures and customer dissatisfaction.
To find out how your SAP systems measure up against these benchmarks please email
[email protected] or visit http://www.westtrax.com/kpi-ssc.html