That’s the million dollar question – and for many SAP customers, a million dollars is in the range of what it costs to manage their SAP changes each year. Based on feedback we’ve had from our customers and prospects over the years, the cost to manage SAP changes is typically in the $100 to $250 range per change. These costs are not the development, configuration and testing costs, but the overhead cost of managing SAP changes from the initial approvals and tracking, to the change being confirmed in the SAP production system.
Cost such as the following can add up to significant amounts for SAP customers:
- SAP change/transport management coordinators
- Change approval board meetings
- Retrofitting or rekeying of changes in N+1 development systems
- Parallel development tracking
- Audit preparation and execution
- Approvals and approval tracking
- Migrations of the changes (transports) to target systems/clients
- Project cutovers
- Downtime/recovery of Production and Non-Production systems
- Re-work/fixing development and configuration issues in Quality and Production systems
To get a quick “back of the envelope” calculation for your costs, simply multiply your number of annual SAP changes (e.g. transports) by the mid-point of our average range, for example $175 per change. That will give you a rough estimate of your organization’s costs. Once you have an understanding of your costs, getting management sponsorship to look at cost reduction alternatives is typically easier.
If your organization wants to dig a little deeper into your cost profile, we’ve developed some helpful workbooks which identify the key input metrics and then calculates your costs in about a dozen cost categories.
We’re also hosting a webinar on April 5th, Calculating the Cost of Managing SAP Change, so please join us for some insight and methods for calculating your cost of managing SAP change.
Of course, if you’d like to discuss ways to reduce your costs while also greatly improving your SAP change management outcomes, please reach out to email@example.com.