SAP Enterprise Value Plan
A New Managed Services Model
for SAP Customers
IT organizations that own and manage SAP software face many unique challenges in terms of supporting the multitude of SAP applications and the variety of skill sets that it takes to do so. Gone are the days that you owned only R/3 and only had to worry about which module to support. Even in those days, you would still have to support various modules (requiring different functional expertise), in addition to development, security, and of course, basis administration.
Nowadays, in a typical IT organization that owns SAP software, you will find more than just core ECC, you may have a slew of other SAP applications such as BW, SRM, CRM, APO, etc. The list is long and getting longer all the time. This requires the IT organization to grow larger to support the growing number of SAP applications as well as the skill sets required to support those applications. As one might imagine, the cost of support rises very rapidly in this case.
IT organizations supporting SAP applications face major cost increases as they try to cope with growing number of expertise required to support the various SAP applications in-house. While it is true that managed services might be a good solution to this problem, it also comes with its own unique challenges:
- SAP support is offered in silos. Typically, you pick which area you need support in, and you are limited to that particular area.
- Support is limited to certain types of activities, i.e. routine repetitive tasks as outlined in the support agreement.
- Limitations in terms of amount of support. Past a certain stage, and you are paying premium consulting fees.
Solution: SAP Managed Services: EVP
EVP is a pre-paid (Mix and Match) resource program that provides SAP and Management Consulting expertise in various areas of an IT organization. The programs are offered in separate stand-alone modules in the following areas:
- CIO Leadership
- Program Management
- Organizational Change Management
- SAP Technical
- SAP Functional
The idea behind the plan is that customers pay for a certain level of support (measured in # of hours per month) which they pre-purchase across the areas listed above. They can then use these hours as they see fit. So, the hours can be used towards back-fill for a production support role, or to provide additional help for new initiatives. Any hours which are not used within a given month, will roll over into the new cycle.
For example, if a client signs up for category 4 (SAP Technical) Gold level, they are entitled to 60 hours of resources’ time per month. These hours can be split among several resources whether it be ABAP development, SAP Basis, or BW reporting.
There are many benefits to the EVP program which set it apart as the first SAP Managed Services Program of its kind:
- Pre-paid hours offer discounted rates making them a cost effective alternative (more pre-paid hours include deeper discounts).
- Unused plan hours rollover into a vault where they may be redeemed in the future in increments or all at once.
- Resources are full-time W2 employees of IMPRIVA, so continuity in support can be assured.
- Plan hours may be split across various disciplines within their respected categories (i.e. SAP technical, CIO leadership, etc.).
- Plan offers a blended rate so the right expertise is utilized for the specific tasks (so an SME is not utilized for routine tasks).
- Six month to one-year commitment.
- Customized plans to meet clients’ needs.
- Named resources can be allocated to clients’ account (for customized support).
- If you exceed your plan hours, you can purchase additional hours at the same rate as your plan hours, OR you can upgrade to the next higher tier plan to enjoy even more reduced rates.
These benefits are particularly more pronounced for small to mid-size companies where the IT organization may have some size or skill set constraints.