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SAP Shared Services Model

SAP Shared Services Model

The Shared Services Model is a centralized approach where SAP services are consolidated and shared across multiple departments, business units, or locations within an organization. Instead of each department managing its own SAP systems, a dedicated shared services team or center handles SAP-related tasks, such as system administration, support, and maintenance. This model promotes efficiency, standardization, and cost savings by eliminating redundancy and leveraging economies of scale.

Key Features

Centralized Management

  • A single team or center manages SAP services for the entire organization.
  • Eliminates duplication of efforts across departments or business units.

Standardization

  • Promotes standardized processes, configurations, and best practices across the organization
  • Ensures consistency in SAP system management and usage.

Cost Efficiency

  • Reduces costs by consolidating resources and eliminating redundant systems.
  • Leverages economies of scale for licensing, infrastructure, and support.

Improved Service Quality

  • Dedicated SAP experts provide high-quality support and maintenance.
  • Supports multiple departments, locations, or business units.

Scalability

  • Easily scalable to accommodate growth or changes in business needs.
  • Ideal for organizations with fluctuating workloads or growth plans.

Knowledge Sharing

  • Departments can focus on their core activities while the shared services team handles SAP operations.
  • Reduces the burden of SAP management on individual teams.

Technology Integration

  • Integrates SAP systems with other enterprise applications and tools.
  • Ensures seamless data flow and process automation.

Compliance and Security

  • Centralized control ensures compliance with industry regulations and security standards.
  • Regular audits and updates maintain system integrity.

Best For

Large Enterprises

  • Organizations with multiple departments, business units, or locations.
  • Companies looking to consolidate and standardize SAP services across the organization.

Global Organizations

  • Businesses with operations in multiple countries or regions.
  • Organizations that need centralized SAP management to ensure consistency.

Cost-Conscious Organizations

  • Companies looking to reduce costs by eliminating redundancy and leveraging economies of scale.
  • Businesses aiming to optimize IT spending.

Organizations with Complex SAP Landscapes

  • Companies with multiple SAP modules or systems that require centralized management.
  • Businesses with diverse SAP needs across departments.

Industries with Standardized Processes

  • Industries like manufacturing, retail, and logistics that benefit from standardized SAP processes.
  • Organizations with repetitive or similar workflows across departments.

Businesses Undergoing Mergers or Acquisitions

  • Companies integrating SAP systems after mergers or acquisitions.
  • Organizations looking to harmonize SAP operations across newly acquired entities.

Organizations Seeking Process Efficiency

  • Businesses aiming to improve efficiency and reduce operational complexity.
  • Companies looking to streamline SAP support and maintenance.

Benefits

Cost Savings

Reduces costs by consolidating resources and eliminating redundancy.

Cost Control

Fixed pricing and no long-term commitments.

Standardization

Ensures consistent processes and configurations across the organization.

Improved Service Quality

Dedicated teams provide high-quality support and maintenance.

Scalability

Easily adapts to organizational growth or changes.

Focus on Core Business

Allows departments to focus on strategic activities rather than SAP management.

Examples

Centralized SAP Support

A shared services team provides helpdesk support for SAP users across the organization.

System Administration:

Centralized management of SAP system configurations, updates, and maintenance.

Finance and Accounting

Shared services for SAP FI (Financial Accounting) and CO (Controlling) modules.

HR and Payroll

Centralized management of SAP HCM (Human Capital Management) or SAP SuccessFactors.

Procurement and Supply Chain

Shared services for SAP MM (Materials Management) and SAP Ariba.

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