SAP Benchmarking FAQ

Frequently asked questions about SAP Benchmarking.

Q: When should benchmarking be done?

A: Many organisations find it beneficial to benchmark:

Prior to process reengineering or a software implementation to build a business case
After a process reengineering or a software implementation to assess value realisation and/or track performance improvement over time
In steady-state to compare divisions or regions through internal benchmarking, to manage by numbers, and/or to impress management

Q: What makes SAP benchmarking unique?

A: SAP benchmarking offers the following differentiators:

The benchmark surveys reflect SAP's unmatched knowledge of business process and technology best practices.
The large number of participants allows for a very robust benchmarking comparison.
Benchmarking reports are customised to your organisation and are designed to reflect the impact on business and strategic value.
You have an opportunity to conduct a read out with an SAP subject matter expert who will explain the survey results to you and discuss any potential opportunities for improvement.
The benchmarking program is offered on an ongoing basis and there is no participation deadline. This allows participants to identify trends and keep up with the best practices of leading companies.

Q: What type of data is needed to successfully participate and ensure meaningful information is the outcome?

A: The surveys require basic company information, as well as a quantitative baseline on key metrics and performance indicators. A qualitative assessment is included as well, where coverage and importance of best practices is covered. You will learn how the key performance indicators (KPIs) of your organisation's processes and systems compare with best-in-class KPIs.

Q: How long does the process take?

A: The abbreviated surveys take generally from one to two hours and up to one to two days (depending on availability of the information).

Q: What methodology is used in the benchmarking process?
A: Benchmarking Methodology Process:

Step 1: Key Performance Indicators
- Submitted data from the participant is used to calculate key performance indicators (KPIs).
Step 2: Gap to Q1 and Average
- The participant's KPIs are compared against the averages and the first quartiles (Q1) of the peer group(s), which is typically defined by criteria such as industry, company size, or geography.
Step 3: Best Practice Adoption
- Results for the KPIs are then supplemented with a detailed assessment of adoption of best practices, which helps to explain why a participant may excel or have a gap vis-à-vis the peer group.

Q: How can I ensure my data/information will not be shared with other competitors?

A: The benchmarking interchange is treated as confidential to the individuals and organisations involved. Organisation-specific survey responses and the resulting analysis can only be shared with the individual(s) submitting the data and cannot be shared outside of said individual(s), either internally within the individual(s)' organisation or externally outside of the SAP benchmarking organisations, without the prior consent of the individual(s) who submitted the data.

Q: How will my organisation benefit from benchmarking?

A: By participating in a benchmarking survey, you will learn how the key performance indicators (KPIs) of your organisation's processes and systems compare with best-in-class KPIs. In addition, you will also benefit from:

Benchmarking report - Receive a detailed, organisation-specific report that's completely confidential.
Read out with an experienced benchmarking consultant - Validate your data and review key insights for impacting organisational change by taking benchmarking insights and best practices back to your business.

Q: Is there a high-level overview that can be shared so I can have a better understanding of what really happens throughout the process?

A:Survey Registration and Completion Process:

Step 1: Survey Registration

Step 2: Data Validation

Validate data provided in the survey

1 week post-survey submission

Key Stakeholders: Survey Participant(s)

Engagement sponsor
Business process owner(s)
Process level IT owner(s)

Step 3: Analysis and Report Creation

- Assess KPI and best practice adoption
- Summarise key business pain points

Step 4: One-toOne Session

Present findings to process owner(s)

1 - 2 weeks post-data validation

Key Stakeholders: SAP

Engagement sponsor
VE team member(s)
VE Business process expert(s)

OVERVIEW OF AVAILABLE BENCHMARKS

SAP offers complimentary participation in SAP's benchmarking program. The deliverable of these confidential benchmarks is a detailed comparative benchmark report. For more information please see our benchmarking page
Register now to participate in benchmarking and to receive more information.