Evaluation of SAP Services Providers in the UK

158 Pages·1997·9.8 MB·English

19
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SAP
Evaluation of Services
UK
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EVALUATION OF SAP SERVICES PROVIDERS IN THE UK INPUT
Abstract
SAP continues to enjoy success with its enterprise-wide business
UK
applications products. In 1996, its revenues grew to £58.8 million,
growing 34% from the previous year.
However, the provision of services that enable users to successfully
implement and enjoy the full benefits of their SAP investment is key to
the continued success of SAP.
In order to deliver an extensive array of services to all of its customers,
SAP has chosen to establish a partner programme.
This report analyses the market for SAP services in the UK and
describes:
• The environments in which SAP products typically run and the
implementation of SAP products
• User requirements from SAP and its partners
• The dynamics affecting the SAP services market and its likely
development
• The competition faced by SAP and its services partners.
96B2 © 1997 by INPUT Reproduction Prohibited
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Evaluation ofSAP Services Providers in
UK
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Copyright © 1997 by INPUT. All rights reserved.
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without prior written consent of INPUT.
INPUT exercises its best efforts in preparation of the
information provided in this report and believes the
information contained herein to be accurate.
However, INPUT shall have no liability for any loss or
expense that may result from incompleteness or
inaccuracy ofthe information provided.
SAP* 1997
EVALUATION OF SAP SERVICES PROVIDERS IN THE UK INPUT
Table Contents
of
Introduction
I 1
A. Objectives and Scope 1
B. Research Methodology 2
C. Report Structure 4
D. Related INPUT Reports 5
Summary
II Executive 7
A. SAP UK Revenues Up by 34% in 1996 7
B. Smaller Organisation Require Faster Implementation Times
and Fixed Price Contracts 8
C. Skills Shortages Frustrate Users 10
D. Services Vendors Must Offer Expertise in Products that Inter-
operate with SAP Products 13
E. Services Vendors Must Develop Expertise in Products that
Compete with SAP and Target Offerings at Smaller Businesses 17
III SAP Implementation 21
A. Hardware Platforms 21
B. Database Platforms 25
C. SAP Implementation 26
D. User of Modules 35
IV User Needs 39
A. User Satisfaction with SAP Products 39
B. Objectives Behind SAP Implementation 42
C. User Satisfaction with SAP Services Delivered by External Vendors 50
D. Use ofTools and Methodologies 53
E. Areas for Improvement 56
96B2 ©1997 by INPUT. Reproduction Prohibited.
EVALUATION OF SAP SERVICES PROVIDERS IN THE UK INPUT
V Market Development
61
A. Market Growth 61
B. Use of External Vendors 67
C. Vendor Selection/Decision Criteria 72
D. Contract Types 75
VI Industry and Competition 77
A. SAP Partnering 77
B. User Perceptions of Partners 80
C. SAP’s Competition 83
A A
Appendix
89
A. Andersen Consulting 89
CGS
B. 90
C. Coopers and Lybrand 90
CMG
D. 91
CSC
E. 91
F. Data General 92
DEC
G. 92
H. Druid 93
EDS
93
I.
J. Ernst & Young 94
K. Group Bull 94
L. Hewlett-Packard 95
M.IBM 95
N. ICL 96
O. Interim 96
KPMG
P. 97
Q. Logica 97
R. Olivetti 98
S. Origin 98
PA
T. Consulting 99
U. Price Waterhouse 99
V. Sema Group 100
W.SNI 100
X. Sun 101
Y. Unisys 101
Z. 121 Consulting 102
B UK SAP User Questionnaire 103
C UK Non-SAP User Questionnaire 123
© 1997by INPUT. Reproduction Prohibited. 96B2
EVALUATION OF SAP SERVICES PROVIDERS IN THE UK INPUT
List of Exhibits
-1 Non SAP User Sample Split by Vertical Industry 3
-2 Non SAP User Sample Split by Company Size 4
II
-1 R/3 User Satisfaction with Services Delivered by External
Vendors 9
-2 User Satisfaction with On-Going Support Provided by
External Vendors 11
-3 User Satisfaction with Training/Skills Transfer Provided by
External Vendors 11
-4 Major Weaknesses with SAP Products 12
-5 Hardware Platforms Underlying R/3 14
-6 Databases Underlying R/3 15
-7 Future Plans (next 2 years) with R/3 17
-8 Business Applications Vendors Considered by Non SAP
—
Enterprise Users Top 5 18
-9 Non SAP Enterprise User’s Perspectives ofthe Capabilities
—
of Business Applications Vendors Top 5 19
III
-1 Hardware Platforms Underlying SAP Products 22
-2 Hardware Vendors Considered for Future SAP Projects 23
-3 Underlying Operating Systems 24
-4 Underlying Database Platforms 25
-5 Cost of SAP Implementation 26
-6 Cost of R/2 Implementation by Category 27
-7 Cost of R/3 Implementation by Category 28
-8 Implementation Categories as a Proportion of the Total Cost
of R/2 Implementation 29
-9 Implementation Categories as a Proportion ofthe Total Cost
ofR/3 Implementation 30
-10 R/2 Implementation Approach 31
-11 R/3 Implementation Approach 31
-12 R/2 Implementation Times 32
-13 R/3 Implementation Times 33
-14 Expected Payback Periods for R/2 34
-15 Expected Payback Period for R/3 35
-16 Implementation of R/3 Modules 36
-17 Likely Implementation by Potential SAP Users 37
-18 Likely Modules to be Implemented by Potential SAP Users 38
96B2 ©1997 by INPUT. Reproduction Prohibited. II!
EVALUATION OF SAP SERVICES PROVIDERS IN THE UK INPUT
IV
-1 User Satisfaction with R/2 40
-2 User Satisfaction with R/3 41
-3 Major Objectives Behind R/3 Implementation 42
-4 Major Objectives Behind R/2 Implementation 43
-5 Major Objectives of SAP Implementation for Potential Users 45
-6 Meeting Objectives with R/2 Implementation 47
-7 Meeting Objectives with R/3 Implementation 48
-8 R/2 User Satisfaction with Services Delivered by External
Vendors 50
-9 R/3 User Satisfaction with Services Delivered by External
Vendors 52
-10 Use ofTools & Methodologies 53
-11 User Satisfaction with Formal Implementation Methodologies 54
-12 User Satisfaction with Proprietary Implementation Tools 54
-13 User Satisfaction with Business Modelling Tools 55
W
-14 User Satisfaction with SAP’s BE 55
-15 Proportion of Users Encountering Significant Problems with
their Systems 56
-16 Common Problems with SAP Systems 57
-17 Areas in which Further Investment would Improve Usage of
SAP Systems 58
-18 Proportion ofUsers with Unmet Requirements from the
Implementation Process 59
-19 Proportion ofUsers who Believe that Alternative Services
Providers Can Meet their Unfulfilled Requirements 60
V
UK
-1 Market for SAP-Related Services, 1995-2000 62
-2 Would Users Purchase Packaged Business Application
Software for Large-Scale Development or Integration Projects? 63
-3 Would Enterprises Use External Services Vendors to Assist
Application Development or SI Initiatives? 64
-4 Choice of Services Vendor by Vendor Type 65
-5 Priorities of External IT Spend for Potential Users of SAP
Products 66
-6 Who Did Users Approach to Purchase SAP Products? 67
-7 Who Would Potential SAP Users Approach to Purchase SAP
Products? 68
-8 Major Reasons for Choosing External Assistance 69
-9 Importance of Logo Partner Accreditation in Services Vendor
Selection 70
-10 Importance to be Logo Partner Accreditation to Potential SAP
Users 70
-11 Exposure of Services Vendors 71
-12 Most Important Criteria for R/2 Services Vendor Selection 72
-13 Most Important Criteria for R/3 Services Vendor Selection 73
iv © 1997by INPUT. Reproduction Prohibited. 96B2