By engaging JNC in a managed services contract, clients unlock a multitude of benefits. *Luxurity, a prominent retailer, exemplifies how this partnership in comprehensive IT management can yield significant advantages. The retailer was seeking expert support to manage its intricate SAP estate, aiming to ensure compliance, optimize costs, and handle various SAP-related complexities. Luxurity’s specific requirements included:

  • Audit support
  • Regular Effective License Position (ELP) reports
  • The handling of ad-hoc queries
  • Reviewing business changes and their impact on licensing
  • Assisting with S/4HANA transformation

Challenges

The retailer was facing numerous challenges in effectively managing their SAP estate:

  1. License Compliance: Understanding and navigating their license environment, ensuring, and maintaining compliance.
  2. Impact of Business Changes: Assessing the impact of business and technology changes on SAP licensing, especially vigilantly monitoring and mitigating risks associated with SAP’s Indirect Access policies.
  3. Cost Optimization: Ensuring competitive pricing for license purchases amidst evolving business needs to optimize costs and benchmarking.
  4. S/4HANA Transformation: strategically preparing and assessing the cost for significant technology transitions like migrating to S/4HANA.
  5. Audit Preparedness: Support during audits to ensure smooth processes and defending the need for any license purchases.
    all while maintaining operational efficiency and staying abreast of market developments.

These multifaceted challenges underscored the critical need for expert support and proactive management of their SAP environment.

The Solution

Recognizing JNC’s status as a premier, specialist SAP license advisory company, Luxurity engaged them five years ago requesting the following focus :

  1. Regular Licensing Reviews:
    o JNC provides regular licensing positions and reports on changes, enabling the retailer to monitor impacts and maintain compliance effortlessly.
    o Changes are investigated quickly, leveraging JNC’s familiarity with the organization to minimize the customer’s time investment.
  2. Risk Management:
    o Regular compliance updates are ensured, risks promptly identified and risks resolved.
    o JNC has supported in assessing the impact of business changes on SAP licensing, particularly Indirect Access, resulting in substantial cost savings.
  3. Cost Optimization and Benchmarking:
    o License purchases are reviewed and benchmarked to secure market-competitive deals, offering commercial SAP expertise.
    o Advice is provided on timing and costs for significant projects like the transition to S/4HANA.
  4. Audit Support:
    o The licensing position is continuously reviewed, ensuring smooth audit processes.
    o JNC supports on defense arguments and necessary purchases during audits, based on genuine needs.
    As a result Luxurity has strategically maintained this mutually beneficial relationship of comprehensive SAP management.

Conclusion

Through JNC’s comprehensive support, Luxurity has achieved significant savings and maintained a robust SAP estate management strategy. Key successes included:

  • • Indirect Access Risk Management:
    o Quickly identified and quantified risks, resulting in a £1M saving by opting for Indirect Access over Digital Access.
    o Provided negotiation support to secure the best prices.
  • Contract Termination Savings:
    o Identified underutilized software, leading to the termination of a £500k annual contract and substantial cost savings.
  • Support Fee Negotiation:
    o Argued successfully against unjustified annual support fee increases, saving £140k annually, with savings accumulating each year.

JNC’s evolving expertise and regular communication ensured that the retailer remained well-informed and effectively managed their SAP estate, resulting in optimized costs and streamlined operations.

*Protecting our clients’ confidence is of utmost importance at JNC. While our case studies are based on true projects, we have used fictitious names and removed or changed other identifiable details

Author: Katie Sweny
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