ISG helps a Fortune 100 agricultural cooperative in creating its agreement to migrate from ERP central component (ECC) 6.0 to S/4 HANA, saving it $14.2 million in the process.
Opportunity
A Fortune 100 agricultural cooperative engaged ISG to help it negotiate an agreement to migrate from ECC 6.0 to S/4HANA based on its deployment roadmap, approved capital and operating expenditure (CapEx and OpEx) budgets and SAP feature set requirements.
To drive a success, ISG deployed a team of SAP licensing experts and software architecture/technical auditors who worked with the company’s various stakeholders to create a S/4 negotiating strategy to align the proposed license, subscription and maintenance costs to market. ISG created a “current state” inventory of its existing SAP infrastructure based on its review of USMM, SLAW files, XI/PI/PO data extracts, order forms, cloud agreements, maintenance invoices, etc.
We conducted workshops to identify and rationalize S/4HANA sizing requirements, license unit tiering, upgrade requirements, interfaces, third-party applications and a deployment roadmap. ISG also developed a bill of materials (BOM) based on the outputs of the current state assessment and a client and deployment roadmap.
To drive a success, ISG deployed a team of SAP licensing experts and software architecture/technical auditors who worked with the company’s various stakeholders to create a S/4 negotiating strategy to align the proposed license, subscription and maintenance costs to market. ISG created a “current state” inventory of its existing SAP infrastructure based on its review of USMM, SLAW files, XI/PI/PO data extracts, order forms, cloud agreements, maintenance invoices, etc.
We conducted workshops to identify and rationalize S/4HANA sizing requirements, license unit tiering, upgrade requirements, interfaces, third-party applications and a deployment roadmap. ISG also developed a bill of materials (BOM) based on the outputs of the current state assessment and a client and deployment roadmap.
Imagining IT Differently
ISG strategically leveraged our reputation as a “deal advocate” to achieve the following deal attributes:
- Pricing: ISG advised on pricing based on the company’s invest and run costs, our deep market data, conversion credits, reduced maintenance rates, phase-in of maintenance and software-as-a-service (SaaS) subscription fees.
- Contract Flexibility: We secured value flexibility on the on-premise engines and step-in on the cloud products.
- Risk Mitigation: ISG helped it suspend compliance audits, conform digital access based on its business model, and expand territory restrictions and affiliate use.
Partnership: We obtained an upfront SAP investment to ensure a successful transition from ECC to S/4HANA and secure participation rights in SAP’s Agricultural Products Roadmap Council.