Sap Bus Case

8/10/2019 Sap Bus Case

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ARTHURANDERSEN

BusinessConsulting

What Is a Business Case?

• Strategic -- identifes new capabilities that a sotware-based business solution will provide to achieve

business objectives

• Operational -- requires identiying and quantiying specifc process improvement areas enabled by the

reengineering o business processes and the integration o application sotware with these processes

• Technical -- involves ide3ntiying the way the move to new application sotware and a client-server

environment supports the overall technology strategy o the company and enables signifcant

improvements in the cost and capability o the inormation technology inrastructure

• Financial -- involves determining the costs and benefts o the proposed project and quantiying those

values into business perormance measures that are meaningul to the organization

• Cultural -- helps determine i the organization has an adequate organizational inrastructure to support

the transition rom current to uture state

A business case provides justication for enterprise technologyimplementation projects along several dimensions.



ARTHURANDERSEN

BusinessConsulting

he Business Case Challenge

• Projects tend to be highly cross-unctional in nature and enterprise-wide

in scope making costs and benefts challenging to estimate

• ew application sotware oten provides companies with signifcant newcapability or which benefts can be challenging to quantiy

• !he overall challenge is to develop a balanced scorecard that includes

both strategic and economic benefts based on reasonable andquantifable estimates

Developing a business case for an integrated! enterprise"#ideinformation system poses uni$ue challenges.



ARTHURANDERSEN

BusinessConsulting

Why Develop a Business Case?

• "verall project easibility - serves as an assessment tool to ensure the

project is easible or the company to undertake• Preliminary scope - provides an initial set o boundaries or the project

• #igh-level application architecture analysis - enables the company toassess the degree o potential ft o application sotware with the desiredbusiness process capabilities o the organization

• #igh-level project plan - includes estimates o the implementation

process$ timetable$ key milestone points$ and initial timing o benefts• %esource requirements - internal and e&ternal

• 'lignment in support o the project - one o the frst steps in establishingan overall change management process to support a sotwaredevelopment process

A business case not only provides the means of establishingdirection for the project! but also determines %ey information.



ARTHURANDERSEN

BusinessConsulting

&verall 'roject (easibility

• Financial - 'ssess the project costs and whether the

benefts (including strategic) will outweigh the cost o

implementation

• Organizational and cultural - 'ssess the ability o the

organization and culture to accommodate a highly

integrated enterprise-wide system

• Technical - 'ssess the ability o the inormation

technology inrastructure to accommodate or be upgraded

* replaced by new application sotware

he business case provides a )"dimensional assessment to helpdecide if the project is feasible to underta%e.



ARTHURANDERSEN

BusinessConsulting

A Business Case Development 'rocess

%efne the processand conductteam training

+eterminestrategic businessdrivers and sotware linkages

,dentiy majorbusiness processesand key interacepoints

+etermine business$organizational$ andunctional scope

,dentiy businessprocesses andtechnology gapswith keyopportunities orimprovement

uantiy currentperormance oselected businessprocesses

+etermine strategicimpact and economicbenefts o businessprocess improvements

,dentiycomplementary orcompeting businessinitiatives

+evelop investmentrequirements

+ocument andcommunicate thebusiness case

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ARTHURANDERSEN

BusinessConsulting

Business case "" return on investmenttargets

Industry studies project potential benets related to enterprise"#ide soft#are business solutions

Business unction!otential

"ogistics # Distri$ution -reduced in%entor& le%els '()*+,

-ipro%e on-tie shipents '(.*+,

-reduce in%entor& carr&ing costs '(/*+,

-reduce a%erage deli%er& distance and tie '())+,

Finance # Adinistration -reduce 0nancial closing tie '(1*+,-reduce HR sta2ng '(/1+,

-increase pa&ent discounts $& reducing pa&ent

c&cle ties '(/)+,



ARTHURANDERSEN

BusinessConsulting

Business case "" return on investmenttargets

Industry studies project potential benets related to enterprise"#ide soft#are business solutions

Business unction!otential

Research # De%elopent -reduce tie to ar3et

-process engineering changes in a ore tiel& anner

!urchasing4%endor -reduce response tie or re5uests or 5uotation '(6*+,

-reduce supplier anageent costs '(7*+,

- reduce o%erall cost o purchasing '(/)+,

!roduction -ipro%ed a%aila$ilit& o ra8 aterials '(6*+,

-reduce indirect costs o production '(9*+,

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Sap Bus Case