Time to Shut the Dusty Conventional Manual and Reach for SAP Performance Success

For SAP users, system performance and cost management stand out as key points for successful long-term planning and future growth. For years, such performance factors as database optimization and hardware updates have served as a sturdy and proven manual of conventional approaches. However, in the current climate of innovation and a fast-paced economy, this might not be the most efficient approach anymore.

According to SAP change management solution provider REALTECH, there are more nuanced approaches that could streamline the process of achieving performance improvements. Through its benchmark analysis of over 4,200 reference systems and a minimum one-month measurement period, recent research conducted by REALTECH has identified limitations in the conventional understanding of system performance optimization and cost management and offered specific strategies that companies can follow to achieve improvement and success.

Optimizing system performance – key findings

Despite the conventional cost-saving view on data archiving, REALTECH’s study findings suggest it can actually significantly enhance organizations’ performance with a 40 percent improvement in response times after implementing proper archiving strategies.

Additionally, while batch processing may seem effective at first glance, the results of the study showed that over 80 percent of analyzed systems showed suboptimal batch job scheduling, with many systems running batch jobs during peak business hours, significantly impacting system performance.

Finally, when it comes to response time measurement, the study showed that average response times prove inadequate for real performance assessment, especially considering that user perception of system performance often differs significantly from technical measurements. According to the results of REALTECH’s research, peak-time performance analysis provides more accurate insights into user experience.

Next, cost management revelations

Similarly to system performance findings, REALTECH’s research identified limitations in the established cost management approaches in SAP environments. Among them is the process of outsourcing economics: as the results have shown, the initial cost advantages often diminish over time without proper contract structuring. With that in mind, REALTECH suggests there is a potential for an average 15 percent annual cost reduction in technology areas, which can be achieved with built-in cost reduction mechanisms, benchmark clauses after two to three years and flexible pricing models aligned with system consolidation.

Another aspect that users can consider is cloud migration: the study suggests that cloud solutions aren’t universally more cost-effective and static production systems often show better economics in traditional hosting, outlining instead that hybrid approaches can prove to be the most effective, with dynamic systems benefitting from cloud deployment.

More insight was found in terms of the impact of technology investments. According to the study, infrastructure improvements (virtualization, storage) affect only 22 percent of total operating costs, with support and maintenance constituting over 55 percent of total costs, meaning that application support remains the primary cost driver, often overlooked in optimization efforts.

So, what would be the best way to evaluate your SAP system?

To get a full and clear picture of their SAP systems, organizations need to adopt more sophisticated benchmarking approaches that consider such aspects as system complexity beyond user numbers, workload patterns and user type, industry-specific requirements and total cost of ownership across all operational aspects, REALTECH says.

This means that in each focus point, be it performance optimization, cost management or strategic planning, there are specific frameworks that should be established. For instance, to optimize performance, organizations could focus on user-perceived performance metrics, implement proper batch job scheduling and utilize archiving for performance gains. To efficiently manage costs, they can structure outsourcing contracts with built-in optimization mechanisms, implement hybrid cloud strategies based on workload patterns and focus optimization efforts on support and maintenance costs. And for long-term plans, it is important to develop comprehensive assessment frameworks and continuous improvement processes and align technical metrics with business objectives.

After all, time IS money, and no one can afford to lose either in today’s fast-paced world. So, perhaps it’s time to close the dusty manual filled with conventional wisdom and look for approaches and solutions that might offer a holistic view to balance performance, cost and user experience while maintaining operational excellence.