PO4500026554

Challenge:

Credendo wants to achieve a better understanding of the current SAP license consumption, future contractual possibilities and support throughout the decision-making process:

• The current SAP Framework agreement was put in place since 2013-2014. The rollout and implementation of the existing SAP landscape took about 10 years.
• The SAP estate has the following major components:
• SAP ECC + SAP Applications, under enterprise support (~2 Million € per year in expenditure)
• CDP (Custom Developments)
• Certain applications have been custom built due to Credendo’s services as credit insurer
• Custom developments intended to go to SAP and become commercialized offerings. Ultimately these ended up at SAP Fioneer. Intellectual Property is owned by Fioneer. Support offered by SAP Fioneer (~500k € per year)

• Business Technology Platform (BTP) environment (no expenditure details)

• SAP only offers extended maintenance to ECC customers until 2030 (select products). As such, Credendo desires to prepare for the eventual contractual renegotiation/migration to more recent SAP products. Ideally, the right contractual and future-proof agreements are identified and addressed with SAP. Credendo is currently looking into the following topics:

• SAP Licensing Baseline – What is currently in use

• Future contracting possibilities & options
• Identify key contractual requirements & clauses to ensure completeness, flexibility, transparency, risk mitigation & cost optimization
• Align the future Bill-Of-Materials with the required SAP modules and functionalities in the to-be state. Newly contracted products and metrics should align to (1) the currently required features and (2) the future SAP landscape, based on Credendo’s SAP roadmap and design as indicated by Product Owners and other stakeholders.

Solution:

Apply SAP software licensing and contracting specific knowledge and insights in order to create for Credendo:

• An overall SAP license baseline which reflects the actual usage of all SAP software deployed and utilized. This baseline will be used to determine possible optimizations and risks which can be investigated and formalized.
• Next to the usage baseline, a thorough contractual analysis will take place to identify key clauses, terms and conditions that are relevant to the current SAP usage. This analysis will be leveraged towards identifying key contractual clauses that will be preferred or required in the future SAP contract.
• Provide Credendo with an overview of considerations that play a key role in SAP contracts and list associated risks and opportunities related to these. Typical considerations would be related to: Legal, Operational, Financial & Licensing
• Based on the results of the aforementioned activities and input from the Credendo stakeholders, strategize an approach to engage with SAP, i.e outline of desired SAP products & suites, key clauses to achieve, feedback on SAP proposals/communications …

Results:

With the proposed activities and reports, Credendo will have a granular overview on:

• A detailed deployment baseline & compliance overview for its strategic software vendor SAP
• Assessment of possible future contractual model
• Key clauses and considerations to take into account during future negotiations with SAP
• Strategic support and guidance during preparation and execution of discussions with SAP

Project phases:

1. SAP BASELINE CREATION

2. Perform data collection & processing

3. Perform license calculation and compliance reconciliation

4. Present results to stakeholders and management involved

5. SAP CONTRACTING INSIGHTS & CONSIDERATIONS

6. Review contractual use rights, terms & conditions

7. List key considerations and clauses
8. Key factors to take into account
9. SAP S4/HANA contract do’s, don’ts & pitfalls

10. Tailored to Credendo specifically

11. SOURCING & PROCUREMENT APPROACH

12. Overall approach to SAP discussions

13. Key factors to take into account
14. SAP S4/HANA do’s, don’ts & pitfalls

15. Tailored to Credendo specifically

16. SAP SOURCING & PROCUREMENT SUPPORT

17. Support Credendo in preparing the SAP Sourcing approach and strategy

18. Benchmarking
19. Provide feedback during negotiations