Organisations are constantly changing and this poses both major challenges and opportunities for SAP licensing.

SAP Enterprise licensing Strategy is about evaluating the needs of the business and identifying the licensing solution that best serves the needs of the business both now and with a view to planned and anticipated change.

In fact, business change often presents significant opportunities to improve your licensing position both from a simplicity and cost point of view.

JNC’s SAP Enterprise License Strategy consulting services involve looking at both the present and future state of a business and identifying the contract and licensing models that will deliver the greatest value to the business, typically resulting in significant measurable commercial benefits.

Methodology

Fundamentally Enterprise Licensing Strategy is about looking and what you have, what you need and how you will get from A to B, and in doing so delivering the most operationally efficient and cost-effective contract and licensing solution for your business.

Years of mergers, acquisitions and divestments across multiple business verticals and global regions can result in a complex picture of contracts, entitlement and license assets. It’s an equally complex task consolidating that into a new streamlined cost-effective licensing model. At a high level here is how we do it:

Contract & Entitlement Review

Gather a picture of all effective contracts. Map contract architecture. Establish entitlement for each contract. Establish SAP Bill-of-materials for each contract. Review terms and conditions for inclusions and exclusions that make provision for or restrict the intended process. Establish applicable contractual and legal principles.

Document As-is State

Aggregate all contacts and license assets into one whole as-is view of entitlement, i.e, what do we currently have and what do we have to work with.

Document Target Model

Involves the analysis and documentation of target or new organisational structure, target contract structure, target systems landscape, target user numbers, SAP user role requirements, engine licensing requirements and named-user licensing requirements.

Perform Gap Analysis

Gap analysis is performed between the to-be state, what we have, and the to-be state, what we need. This will result in both surplus and shortfall documentation across engines and all named-user license categories. What do we have that we don’t need? What do we need that we don’t have.

Develop Negotiation Strategy

Getting from A to B can involve a number of techniques and approaches including trading, transferring, cancelling, consolidating, procurement and negotiation. The end product will be the new software agreement that reflects your target outcome or the most effective compromise.

Our Services

Business Consolidation

Typically refers to the consolidation of multiple group organisations onto one or more common SAP instances providing improved business operations, financial reporting and supply chain integration.

SAP licensing can be simplified and aligned with the new SAP landscape and organisational structure by evaluating the optimal future-to-be licensing model and roadmapping the business transition from the current as-is state.

Similarly, groups who continue to operate each subsidiary with their own SAP system can move onto an enterprise licensing agreement where each businesses software entitlement is covered by one contract.

Mergers

Following the legal and operational merger of two organisations into one there are the various contract and licensing challenges. The new organisation will operate as one with a single business systems solutions.

Relying on SAP to negotiate the new contract and licensing deal is not likely to earn you the best value or the solution that meets your needs. JNC can lend expert help in evaluating the existing SAP assets and what assets are required to cover the new state.

Often the combined assets of two merging SAP organisations exceeds the new entitlement required. Surplus can be traded against future strategic license purchases or catalogued accurately as a pool of new usable and manageable surplus.

Acquisitions

An organisation acquires a new business. Typically acquired businesses operate separately whilst either being owned directly by a parent organisation or operate as part of a group company. Acquired business may continue to operate on their own SAP system, may be migrated onto an existing company system, or indeed their system might be rolled out to the company that acquired it.

In all scenarios either the landscape changes or the extent of the user changes. The as-is and to-be licensing requirements are typically different. JNC can accurately resolve these scenarios to ensure consolidating assets, cataloguing surplus and identifying licensing gaps where new procurements are required.

Divestments

The sale of a business arm or subsidiary, often to re-align core business strategies, to cash in on a matured investment, off-load a poor performing business or raise capital for new alternative investments.

In any case, if the business has its own system the license assets owned by that business will go with it. However, where that businesses usage was covered by an umbrella enterprise licensing agreement a deal to separate license assets will be required.

SAP may not be so willing to accommodate this perhaps seeing the opportunity to sell new licensing to the divested business. We establish both the contractual and legal principles that facilitate a licensing deal that benefits the customer operationally and commercially.

Roll-Outs

When separate businesses or regions with common processes move onto one single SAP instance as opposed to separate instances. It is common for similar business verticals to operate regionally with region-specific SAP systems. A global template moves all global regions onto one global SAP instance.

A global template implementation also typically incorporates new processes, best practices and the latest technologies, perhaps expanding the template into new business solutions. The new system will be used differently and will involve a changed systems landscape. This requires consideration to what licensing is required to satisfy users of the new system at a global level and what assets were previously held.

JNC define the as-is and to-be states and perform licensing gap analysis to identify what you have that you won’t need, and what you need that you don’t have.

So long as SAP stand to gain through the transaction, the opportunity can be used to trade surplus or redundant assets against any licensing procurement being made.

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