How to reduce the operation and maintenance cost of SAP ERP system

Global trade disputes, global demand cooling, geopolitical crisis They have become an important impact on global economic growth, leading to the global economy entering a period of weakness. In the face of such a complex and changeable global economic situation, more and more enterprises begin to adopt the contraction strategy to reduce risks and cope with the environmental factors that are not prosperous enough. Of course, spending reduction has become an important means of self-regulation for enterprises. Even enterprises without spending reduction strive to obtain more value at the same cost. Driven by the economic tide, the high operating cost of conventional ERP system has become the next target of reducing expenditure.

How to reduce the operation and maintenance cost of ERP system? There are two most common ways: one is to reduce the cost of huge traditional ERP operation by going to the cloud; the other is to reduce the operation and maintenance cost of SAP ERP system through existing ERP, for example. Today, I want to analyze these two categories.

1. Reduce the cost of traditional ERP operation by going to the cloud
If you ask the experts who cost more than the operation of cloud ERP system, they may tell you: the former will burn more money. Because traditional ERP has a complex IT architecture, 70-80% of the annual high operation and maintenance costs are mainly used to maintain the normal operation of applications. There is a serious problem in this, which virtually absorbs the innovation power that it budget might bring, because a small part is used to meet business needs and innovation capabilities.
What is the effect of using cloud ERP system? Reduce it costs by less than 50% and increase the cost of value-added activities. In fact, there are many advantages, such as: formulating new cross department workflow and declaration process, adding new sales channels, opening up new markets, improving connectivity between internal and external systems, etc. Put more cost into the innovation of enterprises, and enhance the innovation ability and future competitiveness of enterprises. Let me tell you one thing quietly: HMD global, which is not bad for money, is also comprehensively considering whether to choose traditional ERP or cloud ERP in 2016.

Of course, we take SAP ERP system as an example. SaaS ordering will automatically update new functions, which will be managed and deployed by suppliers. In contrast, traditional ERP needs to invest a lot of human, material and financial resources every time it is updated. And all of this has been changed from the need to pay for it, to the direct responsibility of the cloud ERP supplier, which really saves a lot of money.

2. Reduce the cost of SAP ERP operation in many ways
As for the cost reduction, no matter the size of the enterprise, even the enterprises that have adopted the cloud on SAP ERP have to face this task. Based on this, let’s talk about how to reduce the operation and maintenance cost of SAP ERP system. First of all, we need to look at what is the operation and maintenance of SAP ERP system? SAP software upgrade, business data backup, report development, software error handling, business error handling, continuous improvement of business processes, etc., which are closely related to enterprise business.
How to reduce operation and maintenance costs? This also needs to be analyzed through some professional data. According to the investigation, the problems that often occur in the operation and maintenance process are only 20% in terms of technology or ERP products, 40% in terms of process errors and 40% in terms of personnel negligence.

Therefore, SAP ERP experts put forward several major directions in terms of their own system operation cost: select the right operation and maintenance mode; large enterprises are mainly concentrated and mixed, and small and medium-sized enterprises are suitable for decentralization; establish organizational structure, the key is to select the right personnel, clear responsibilities and division of labor; have clear rules and regulations, including the management system of SAP ERP system operation and maintenance In the face of end customers, it is necessary to maintain standardized operation process; build operation and maintenance management platform and good communication mechanism; ERP system operation and maintenance needs to do a good job in process control, strictly control user rights, etc.

No matter how many suggestions online experts put forward, what kind of way is more suitable for your enterprise? How to reduce the operation cost of SAP ERP? As an it operator, you must have your own ideas. For a more comprehensive understanding, consult your acloudear–SAP partner.

This article "How to reduce the operation and maintenance cost of SAP ERP system" by AcloudEAR. We focus on business applications such as cloud ERP.

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