Forrester: The Total Economic Impact (TEI) of SAP Integration Suite

SAP commissioned Forrester Consulting to conduct a Total Economic ImpactTM (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying SAP Integration Suite. Download the Document

A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY SAPThe Total Economic ImpactOf SAP Integration SuiteCost Savings And Business BenefitsEnabled By SAP Integration SuiteAUGUST 2024
THE TOTAL ECONOMIC IMPACT OF SAP INTEGRATION SUITETable Of ContentsExecutive Summary ................................................ 1The SAP Integration Suite Customer Journey ..... 7Key Challenges ..................................................... 7Solution Requirements .......................................... 8Composite Organization........................................ 9Analysis Of Benefits ............................................. 10Increased Integration Developer Efficiency ......... 10Improved Productivity For Self-Service Users..... 13Incremental Profit From Unlocking AdditionalRevenue Streams ............................................... 16Cost Savings From Reducing Or Retiring LegacyPlatforms ............................................................. 18Unquantified Benefits .......................................... 20Flexibility ............................................................. 20Analysis Of Costs ................................................. 22External: Cost Of SAP Integration Suite.............. 22Internal: Initial And Ongoing Training Expenses . 23Internal: Initial Deployment And Ongoing SupportExpenses ............................................................ 24Financial Summary ............................................... 26Appendix A: Total Economic Impact .................. 27Appendix B: Supplemental Material.................... 28Appendix C: Endnotes ......................................... 28Consulting Team: Erach DesaiABOUT FORRESTER CONSULTINGForrester provides independent and objective research-based consulting to help leaders deliver key outcomes. Fueled by ourcustomer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute their specific priorities using aunique engagement model that ensures lasting impact. For more information, visit forrester.com/consulting.© Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on bestavailable resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, ForresterWave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of theirrespective companies.
THE TOTAL ECONOMIC IMPACT OF SAP INTEGRATION SUITE 1Executive SummaryOrganizations adopt cloud services and SaaS applications to leverage real-timeinteractions for increased business velocity and agile collaboration with customers,suppliers, and partners. But integration development teams are challenged to integratebusiness-critical applications with business processes in heterogenous cloud and hybridIT landscapes. SAP Integration Suite is an iPaaS solution that empowers integrationdevelopers to integrate end-to-end processes and deliver 360-degree visibility.To adapt and thrive, companies need to fosterengagement and enhance productivity acrossextended business processes that connect them withtheir customers and suppliers. Business processeswith manual and repetitive tasks can negativelyimpact efficiency and productivity. Connectingfragmented business processes is critical for agilityand growth.Despite years of digital transformation initiatives,technological hurdles still stand in the way ofachieving or even approaching seamless businessprocesses. Application landscapes have only grownmore complex with many more applications somestill running on-premises each carrying outfragments of business processes. Organizationsneed to deliver personalized digital experiences totheir customers, partners, and employees. Thisrequires these enterprise applications to have accessto contextual information including customizedinternal applications, and this is precisely whereintegration comes into the picture.SAP offers an integration-platform-as-a-service(iPaaS) suite of tools that connects and automatesbusiness processes. SAP Integration Suite bringstogether comprehensive integration capabilities andbest practices to accelerate and modernizeintegration. Customers receive the tools they need toimplement seamless business processes across theirheterogeneous IT landscapes and businessnetworks.SAP commissioned Forrester Consulting to conduct aTotal Economic Impact (TEI) study and examinethe potential return on investment (ROI) enterprisesmay realize by deploying SAP Integration Suite.1 Thepurpose of this study is to provide readers with aframework to evaluate the potential financial impactof SAP Integration Suite on their organizations.To better understand the benefits, costs, and risksassociated with this investment, Forrester interviewedsix representatives with experience using SAPIntegration Suite. For the purposes of this study,Forrester aggregated the interviewees’ experiencesand combined the results into a single compositeNet savings for integrationdevelopers by Year 3Using preconfiguredinterfaces60%Processing integrationrequests30%Return on investment (ROI)345%Net present value (NPV)$3.70MKEY STATISTICS
THE TOTAL ECONOMIC IMPACT OF SAP INTEGRATION SUITE 2EXECUTIVE SUMMARYorganization that is a global B2B industrialmanufacturing organization with multiple factories. Itgenerates $5 billion in annual revenue and has25,000 full-time employees.Prior to using SAP Integration Suite, most of theinterviewees’ organizations used multiple legacy on-premises integration solutions and various point toolsfor customization. Legacy tools were complex tomanage and monitor while point-to-point applicationintegrations were time-consuming to build anddifficult to maintain. These challenges hampered theorganizations’ ability to build digital ecosystems,innovate new business models, and leverage agileinitiatives for more seamless data access and usage.With SAP Integration Suite, integration developmentteams were able to readily access harmonizedbusiness object definitions and prebuilt integrationsthat allowed them to connect with and securelyexpose the functionality and data of legacyapplications using APIs. This approach also enablednew cloud-native applications to take advantage ofthe capabilities of existing systems and data.The organizations used SAP Integration Suite to builda unified data access layer that created opportunitiesfor tighter integration with their customers andprovided the foundation for scalability and flexibility.All of these capabilities and features comply with theSAP Integration Solution Advisory Methodology thatprovides a framework for optimal usage of theintegration platform.KEY FINDINGSQuantified benefits. Three-year, risk-adjustedpresent value (PV) quantified benefits for thecomposite organization include: Increase in integration developers’ efficiencyby 30% when addressing integrationrequests. The composite organization’sdevelopers speed up integration requests byleveraging SAP Integration Suite’s overallmethodology and availing themselves of thecombination of capabilities. Additionally, withSAP’s prepackaged integration flows, this teamsaves 60% of time for major application-to-application integration projects. The reduction ofthe average integration project from nine to threemonths allows business units to start using theapplication six months earlier. Over three years,the increased efficiency for the core integrationteam results in just under $1.5 million in savingsfor the composite organization.Is SAP Integration Suite worthit? Yes, because integration isthe single point of failure whentwo systems connect. Having arobust, agile, next-generationplatform that powers all types ofintegration productivity is notonly critical, but paramount forthe success of any company.”Global CIO, apparelImagine the scene if we hadn’tadopted [SAP Integration Suite]?Integration would be unwieldyand unmanageable. It was one ofthe first major initiativesundertaken by our CIO in movingthe organization onto the journeyfor cloud technologies. So, he isaware of the value of SAPIntegration Suite.Integration team lead, luxury retail
THE TOTAL ECONOMIC IMPACT OF SAP INTEGRATION SUITE 3EXECUTIVE SUMMARY Improved productivity for self-service users.In addition to providing a robust iPaaS solution,the low-code nature of SAP Integration Suiteenables the composite organization to offer thesolution to self-service users outside the coreintegration team. For business unit integrationtasks, line-of-business (LOB) developers save24% of their time by Year 3 while data engineersand analysts working with business users save12% by Year 3. Over three years, the combinedtime savings for the composite organization’sself-service users results in savings of nearly$1.8 million. Incremental profit of $984,000 by unlockingadditional revenue streams. By offering anonline catalog of products for its strategiccustomers, the composite organization realizesnew revenue of $75 million in Year 1, $85 millionin Year 2, and $100 million in Year 3. BecauseSAP Integration Suite can create applicationinterfaces for electronic data exchanges withcustomers and partners, the integrationdevelopment team creates integration flowsbetween systems that previously could not beconnected. The three-year profit generated fromthis incremental revenue is $984,000. More than $554,000 in cost savings fromretiring legacy platforms. Before switching toSAP Integration Suite, the compositeorganization used multiple third-party on-premises integration platforms and point toolsthat required large ongoing investments andextensive maintenance. Because SAP IntegrationSuite is flexible and can handle many of thecomposite’s applications some running on-premises and others on various cloud platforms the organization eliminates all costs related tolegacy integration tools, including licensingexpenses, infrastructure costs, and maintenanceservices fees.Unquantified benefits. Benefits that provide valuefor the composite organization but are not quantifiedin this study include: Creating a more rewarding and fulfilling workenvironment for integration developers andself-service users. Interviewees said that sincerolling out SAP Integration Suite, employeemorale and job satisfaction on their integrationdevelopment teams have increased along withthe organizations’ ability to recruit and retaindevelopers. Improved and efficient communications withbusiness partners. Interviewees said one of thekey capabilities of SAP Integration Suite isWithout SAP Integration Suite,you cannot survive in a modernIT infrastructure because youcant manage all thoseapplications or connect all thoseapplications without having onestrategic integration platform.”Head of applications integration,instrumentation manufacturingSAP Integration Suite provideda good return on investment. ...The initial setup cost is typicallyreturned three times in the firstyear, making it a cost-effectivesolution for our customers.”Integration solutions lead,professional services