Proven Value in Facts and Figures: SAP BTP with SAP S/4HANA Cloud

In an era where technology is not just an enabler but a critical component for business success, the SAP Business Technology Platform (BTP) with SAP S/4HANA Cloud stands out as a game-changer. But how effective is it really? Can it deliver tangible benefits that impact the bottom line? The purpose of this article is to answer these questions by presenting key facts and figures that demonstrate the effectiveness and utility of the SAP BTP with SAP S/4HANA Cloud.

Before diving into the details: You are interested in the methodology behind the compelling facts and figures? We’re providing insights into how these significant results were calculated.

One of the most compelling ways to evaluate the effectiveness of a technology solution is to look at its financial impact. According to the Business Value White Paper, organizations using the SAP BTP experience significant financial gains across various categories.

Unplanned Downtime and Revenue Gains

Downtime is a costly affair. According to the study, organizations using SAP Business Technology Platform with SAP S/4HANA Cloud managed to avoid an average of $1.70 million in lost revenue per year. This figure assumes a 15% margin, which means that not only are businesses avoiding losses, but they’re also safeguarding their profit margins. Imagine the competitive advantage this could give you over rivals who are still grappling with downtime issues.

Higher Line-of-Business Team Productivity

Productivity gains are often the unsung heroes of technological investment. The study found a 10% average increase in productivity among Line-of-Business (LOB) teams. This translates to a 14.8 Full-Time Equivalent (FTE) gain. In monetary terms, that’s a salary savings of $865,400 based on an average salary of $70,000. These aren’t just numbers, they represent the human capital that can be redeployed to other critical projects, thereby accelerating innovation and growth.

Operational Cost Savings

Operational efficiency is a key performance indicator for any organization. SAP BTP contributed to an average annual operational cost savings of $200,000. When adjusted for a 15% margin, this amounts to $166,800. These savings could be reinvested in other areas of the business, such as R&D or marketing, providing a multiplier effect on the organization’s overall performance.

Higher Net Revenue and Business Enablement

Finally, let’s talk about revenue. The study found that organizations experienced an average of $7.44 million in higher total revenue, assuming a 15% margin. In a business where every dollar counts, these gains are not just incremental, they can be transformative. This additional revenue can be the difference between maintaining the status quo and scaling to new heights.

Productivity isn’t just about doing more with less; it’s about optimizing resources for maximum output. In the context of SAP BTP, productivity gains are realized in multiple dimensions, from IT staff to business operations.

IT Staff Productivity benefits

According to the study, organizations experienced an average annual benefit of $126,800 per 100 users in IT staff productivity. This isn’t merely a cost-saving measure. Enhanced IT staff productivity means quicker response times, faster issue resolution, and more time for strategic initiatives. In a world where IT is the backbone of business operations, these productivity gains are invaluable.

Business Productivity and Risk Mitigation Benefits

The product also contributes significantly to business productivity and risk mitigation, with an average annual benefit of $519,700 per 100 users. This goes beyond just numbers, it impacts the very way businesses operate. Enhanced productivity means faster decision-making, better risk management, and ultimately, a more agile and resilient organization.

Both benefits are a testament to the platform’s comprehensive approach to enhancing organizational productivity.

In business, time is often equated with money, but it’s also a critical factor in agility, innovation, and competitiveness. The SAP Business Technology Platform has proven to be a significant accelerator in these aspects, as evidenced by the study’s findings.

Project Completion Time

One of the most telling metrics is the average time to complete projects. The study found that organizations using the product reduced the average time to complete a project from 16.8 weeks to just 10.6 weeks. This 37% reduction is not just a time-saver, it’s an enabler for quicker market entry and responsiveness to business challenges.

Time to Innovate

When it comes to launching and completing innovative projects, SAP BTP also shines. The average time was reduced from 21.3 weeks to 13.8 weeks, a 35% decrease. This faster time-to-market for innovations can be a game-changer, allowing organizations to stay ahead of the competition and respond to market needs more effectively.

ROI serves as the ultimate yardstick for success in the world of technology investments. It quantifies the financial returns you can expect from your investment, providing a clear picture of its value. SAP BTP has undergone rigorous ROI analysis, and the results are compelling.

ROI Calculations

According to the IDC study, the 3-year ROI calculation was by 514%. The calcuclations were based on a depreciated cash flow analysis conducted over a three-year period. The ROI is calculated as the ratio of the net present value (NPV) to the discounted investment. This provides a comprehensive view of the financial returns, taking into account both the costs and the benefits.

Payback Period

Another critical metric is the payback period, which is the time it takes for the benefits to equal the initial investment. A shorter payback period indicates quicker returns, and according to the study, organizations using the platform expected a 8 month payback period.