The company engaged with ISG to help it source the work packages (build, data migration and deployment) to suppliers for a S/4HANA project. Its goal is to standardize, simplify and digitize core enterprise platforms via empowered teams. It wants to increase speed and efficiency through consistent platform management and common and simple interfaces across business and IT teams. As part of the transformation, it will partner with the various business units across the company to work on SAP projects. It asked ISG to evaluate the sourcing options based on technical and commercial capabilities.
Imagining IT Differently
ISG was tasked with helping the company define its needs for the upcoming S/4HANA request for proposals (RFP). Using our expertise in SAP, sourcing and pricing models, ISG executed a sourcing program following our standard RFP process. This resulted in both savings and process efficiencies. We held Collaboration Alignment Session (CAS) workshops with the client and suppliers to learn details about the phases, activities and deliverables of all the work packages. For each work package, the metrics for evaluation were:
- operating and governance models,
- methodology and deliverables,
- roles and skills,
- system landscape and architecture,
- technical solution, and pricing.
Accordingly, we scored based on capability, credentials, deviation management, pricing, seniority mix and location strategy. ISG also carried out a deep commercial analysis by creating a baseline for all the work packages to compare the cost benefits. We also provided a detailed RACI (responsible, accountable, consulted and informed) report along with a comparison report of location strategy and seniority mix.
Future Made Possible
- Four suppliers were included in the RFP process and the company picked the best for each work package according to the overall scores.
- Based on the qualitative and quantitative scoring mechanism, the company chose vendors on technical and commercial capabilities.
- Work package one and work package two each account for less than 20 percent of the total cost, with work package three being the largest (over 70 percent).
- ISG provided market intelligence and extensive data analysis to enable successful completion of project.
- For each work package, the winner was best in overall assessment.
- Other parameters of evaluation for extra weightage include client build factory, the familiarity of data migration team proposed by supplier known to the program team and its proven capabilities, aggressive pricing and interesting delivery model.