Integrated RISE and SI Evaluation Reduces Risk and Saves Client $21.5M

A SAP Case Study

Overview

Client embarked on a multi-faceted SAP transformation journey where they sought to migrate their ECC environment to S/4HANA.  As part of this journey, the client engaged UpperEdge to support key decisions and commercial negotiations related to the following:

  • SAP – Licensing Model evaluation (RISE v. Perpetual), selection and negotiation
  • Systems Implementation – Multi-Vendor solicitation approach and negotiation to mitigate critical risks, align RACI, and optimize commercials

Approach

UpperEdge provided guidance and market insight into an overall go-to-market strategy to assess and negotiate:

  • SAP Software (RISE & Perpetual models)
  • System Implementation (Analyze & Design Phase)
  • System Implementation (Build & Run Phase)

Leveraging negotiated transparency, deep market knowledge and a proven approach, UpperEdge enabled the client to build a detailed 10-year TCO option analysis that led to the selection and negotiation of SAP RISE to be hosted on Azure.

For the System Implementation scope, a strategic joint Sole-Source Solicitation approach was conducted to ensure the SI Vendor aligned with program scope, roles & responsibilities, and program structure.

UE provided detailed Cost & Effort templates for the client to include in the Solicitation which were utilized to evaluate the merits of each vendor’s proposal.​ UE also delivered detailed Market Benchmarks which provided transparency into overall deal competitiveness & areas of opportunity.

Negotiated Outcome

As a result of the negotiation strategy laid out, the client was able to achieve Competitive to Best-in-Class RISE and SI Services Agreements.

These agreements will provide the highest degree of program and financial accountability on behalf of the SI vendors and will ensure long-term commercial predictability and flexibility in their SAP environment.

SAP RISE Deal Highlights:

  • Achieved 12% reduction over 5-years compared to the original proposal through targeted negotiations, executive alignment, and leveraging SAP’s quarter-end
  • Significantly optimized existing maintenance base by leveraging terminations of shelfware
  • Negotiated commercial flexibility via Exchange Rights and future cloud price protections (i.e., IBP Solutions, S/4HANA Cloud, Service & Asset Manager)

Systems Integration Services Deal Highlights:

  • Optimized total SI Fees, achieving $21.5M reduction
  • Established a clear definition of Roles & Responsibilities across vendors ensuring the seams between the two vendors were appropriately managed
  • Negotiated a financial accountability structure focused on driving cost and timeline certainty along with increased fee transparency/predictability
  • Reduced overall program delivery risks and financial risk of change orders

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