ONE Service – Value Based Selling and Delivery

Unit: Value Management

ONE Service Enablement

Learning Objectives

At the end of this unit, you will be able to:

 Understand the importance and the benefits of Value Management
 Explain the Value Management concept and the underlying methodology
 Utilize Value Management in your One Service customer engagements

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Why is Value Management important?
Ensure Value Realization and Delivery of Expected Value

5% – 10%

Management
Poor Selection 10% – 15%

Value
and Prioritization
Inefficient Project
20% – 25%
Execution
100% Poor Absorption
and Value
Tracking
50-65%

Expected Building the Building Exploiting Realized

Value Right Things Things Right What We Built Value

Source: Corporate Executive Board - Applications Executive Council Research

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SAP’s Answer to the Value Challenge:
A disciplined Approach to Value Management in One Service

Initiate, Setup and Plan (Value

Discovery)
Identify the Business Value
 Assess the business opportunities and the
1. business case
 Align Business and IT and determine the best
solution fit
 Build the case and the road map for business
Run and Adopt (Value Optimization) Value 2. transformation

Continuous value-focused improvement Management

 Assess and optimize realized business value
 Implement a continuous value-driven
Lifecycle
improvement culture
Build and Launch (Value Realization)
Realize the Business Value
3.  Run Value Based Engagement Management
 Setup of Value Management Office
 Build and innovate along the Innovation Roadmap

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Value Management Benefits are Worth the Effort

Companies with high Value Management adoption achieve better results

Quantitative Strategic
 Increased executive sponsorship and
engagement
Projects delivering value on or ahead of time  Increased innovation and end-user adoption
 Increased alignment between business and IT
On Time On Budget On Value
Projects Delivering Projects Delivered Business Benefits
Value On or Ahead of On or Below Budget Achieved
Schedule

1.5 x – 2.0 x
Better Results with Value Management
Source: : SAP Value Management Best Practices Survey; 630+ respondents

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Value Management Approach
Value Structure

Financial By applying a cost/price or other valid financial formula to a quantifiable benefit a financial
value can be calculated.

Degree of explicitness
Quantifiable Sufficient evidence exists to forecast how much improvement/value should result from the
change.

Measurable This aspect of performance is currently being measured or an appropriate measure could be
implemented, but it is not possible to estimate by how much performance will improve when
the changes are complete.

Observable By use of agreed criteria, specific individuals/groups will decide, based on their experience or
judgment, to what extent the benefit has been realized.

Source: Business Transformation Management Methodology (BTM²)

Reproduced with permission from ‘Benefits Management: Delivering Value from IS and IT Investments’ by John Ward & Elizabeth Daniel, John Wiley & Sons, 2006

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Value Management as Part of the ONE Service Engagement
Methodology

Holistic Value
ONE Service Engagement ONE Service Engagement Methodology Management for One
Service engagements

Value Management
Components that
Component Projects Project A Project B Project C Project D … integrate into the One
Service Value
Management

Consistency
Value Management as
Methodology Foundation Common Methodology Architecture
integral part of
Methodology

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One Service Value Management

e.g. BTM²
Methodology used by
Service Business
Transformation
ONE Service Engagement
Methodology with Value Management
Services1)

ONE Service Value

Management

& methodology combines

Best Practices from
Service and Support

e.g. RI²BS
Methodology used by
Support Active Global
Support2)

1) BTM²: Business Transformation Management Methodology

2) RI²BS: Roadmap Management, Implementation Planning, Implementation Execution, Benefits Capturing, Showcase

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Service and Support Methodology
Engagement Methodology Overview
Engagement Delivery and Renewal

Initiate
Plan Build and Launch Run, Adopt and Optimize
and Setup Build and Launch Run, Adopt and Optimize

Setup Engagement

Identify Stakeholders

Advise and Determine Value

Plan Value Realization

Define Arch. Governance

Monitor and Control Engagement

Align Stakeholders

Realize Value

Manage Architecture Governance

Legend:
Engagement Management Drive Solution Adoption

Value Management Optimize and Improve Value

Architecture Value Audits

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Value Management – Key Activities and Deliverables (1/2)
ONE Service Engagement Methodology
Engagement Delivery and Renewal

Initiate
Plan Build and Launch Run, Adopt and Optimize
and Setup Build and Launch Run, Adopt and Optimize

Advise and Determine Value Value & feasibility map

2.
Define Business case
Build Value Maps /
based on Strategic
Innovation Use Cases
Value Drivers

Plan Value Realization

1.
Business Case Build Value Roadmap
Value-based innovation road map
3.

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Value Management – Key Activities and Deliverables (2/2)
ONE Service Engagement Methodology
Engagement Delivery and Renewal

Initiate
Plan Build and Launch Run, Adopt and Optimize
and Setup Build and Launch Run, Adopt and Optimize

4. 5.

Realize Value

Execute Value
Build VM Scorecard
Realization

Value Audits
6. Review and Evaluate Results

Optimize and Improve Value

7. Establish Potential for further Benefits

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One Team Approach to deliver Business Value

Service & Support Customer

Lead

ICC OCC MCC Mission Control Center

Business
Transformation Lead
Collaborates with Value Management experts
Value Management Office at SAP, e.g. BTS Business Research Center

Technical Architect Lead

Cloud and Support Lead

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Storage of Value Management Documents and Assets in CRM

System infrastructure available to store Value

Management documents and assets in account master
data to capture customer-related value management
activities, status and results.
Customer

SAP CRM
Scorecard WWW.

Roadmap

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Key Takeaways

You should now be able to:

 Understand the importance and the benefits of Value Management
 Explain the Value Management concept and the underlying methodology
 Utilize Value Management in your One Service customer engagements

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14