Using Accurate Technical KPIs to Optimize Business KPIs for Your SAP Landscape
Contributed by: Jim Villwock, KPI Analyzer Leader, Human Investment Advisory, Inc.
Modern ERP software sales often estimate their ROI Impact on Business KPIs. Business KPIs are metrics used to run a business. They range from companywide, to functional, to department, and to the individual performance measurements required to pursue alignment and increasing competitive results. Examples range from companywide metrics, such as Revenue and EBITDA versus competitors, to the performance of each major function. Each function then tiers down its metrics and resulting KPIs, to departments and ultimately individuals.
SAP Landscape Technical KPIs are tied into the IT Department and used to run each SAP system. They indicate your IT system performance which has a direct impact on the accuracy and optimization of all your Business KPIs. You’ve heard the phrase, “Garbage In / Garbage Out”. Your SAP system technical KPIs are made up of detailed data such as usage, users, and Tcodes included in the 6 levels of your system usage activity profile. If your SAP system KPIs are not optimized, your business KPIs may not be optimized.
Managing IT technical optimization in an ever-changing world doesn’t happen unless you are also monitoring how each system usage KPI compares to your industry competitors. How mature your systems are is frequently unknown unless you have detailed data to support the KPI analysis. This is further complicated by continuing challenges such as ongoing SAP updates (which may or may not be implemented), global threats and changes that demand additional system requirements, and IT facing the never-ending action items required just to continuously improve, monitor, and optimize their system(s) to support ongoing and changing business requirements.
Want to know how you can improve your SAP ERP Landscape KPIs? It doesn’t matter if you’re running ECC or S/4HANA. Whether you’re looking for ECC consolidations or optimization, optimizing a S/4HANA migration, or an ongoing S/4HANA optimization. You need all the updated detailed facts to understand the competitive health of your systems and how to ensure the details that make up the SAP Landscape KPIs are optimized for today and tomorrow.
Then, the performance of your SAP IT KPIs can be managed and included with IT business KPIs.
We encourage you to review with enterprise architects and value advisors to see how these recommendations can help your success.