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Application Value Management

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Better outcomes with application value maintenance.

OVERVIEW

We have witnessed increasing business involvement in IT-related decisions across enterprises. In Application Value Management (AVM), businesses are demanding:

  • Business outcomes with business KPIs taking priority over IT/Services SLAs
  • Near-seamless vendor scenarios with end-to-end governance in multi-vendor scenarios
  • Synergy across services (L0, L1, L1.5, L2, L3 levels)
  • Flexible, on-demand pricing
  • Transformation co-delivered
  • Innovation

With these drivers for change, we revised our strategy and focused on strengthening our capabilities along Transformative AVM—Cognizant’s philosophy of managing SAP’s impact on the business through a series of carefully structured, continuous improvement and transformation interventions.

SERVICE OFFERINGS

Our AVM service offerings are driven by key elements of transformation delivered through the SAP OneAVM factory, including managed support and maintenance and agile development.

Business outcomes-based delivery for SAP

  • Business outcomes are driven by domain expertise, enabled by Self Contained Automation Process Apparatus (ScAPa) tools/accelerators (part of the Cognizant AVM Plus framework) and governed by robust program management
  • SAP Transformation Office, comprised of:
    • SAP Consulting and Solutions group to drive element of transformation within AVM engagements
    • SAP Technology Office to drive element of automation within AVM engagements
  • Output-based pricing catalogue for
    application-based support services
  • Cognizant’s proprietary BondIT framework to capture, measure and report outcome-based delivery on SAP projects

Integrated SAP delivery framework

  • End-to-end SAP service offerings integrated across infrastructure and designed to accommodate applications and multi-service, multi-location,
    multi-tower and multi-vendor scenarios
  • Seamless SAP delivery organization leading to synergies in complex SAP landscapes

Innovation for business and operational improvements

  • Innovation is a mandatory element for each engagement across services governed by the SAP Idea Framework
  • Innovations are driven by SAP Idea Champions identified for each project
  • Results achieved : $19M-plus cost savings for our SAP clients in 2014; $2,461 value of innovation per SAP associate

New pay-per-use type of models for SAP

  • SAP System Identification (SID) based service models
  • Catalog-based service pricing for application-based support

HEAR FROM OUR CUSTOMERS

“The Cognizant team was the linchpin for the successful integration of the three system providers. It would not have been possible, within the timeframe, to have implemented this program successfully in our operations, without them. This program is a game-changer for our business.”- Vice President, Supply Chain, Global Packaging Solutions Company

RESULTS

Outcome-based application support for a global electronics manufacturer

Challenge

A €21-billion global electronics manufacturer wanted a hands-free environment in the applications landscape with operational stability, service-level fulfillment, business continuity and reduced costs.

Solution

We took end-to-end ownership in a multi-vendor environment and provided 24/7 outcome-based application support across North America, Latin America, Europe Middle East and Africa and Asia Pacific regions. The support services included price points per service (full service, freeze mode, archive mode).

Impact

14% year-on-year (YOY)

reduction in number of incidents

8% YOY

productivity gains

Cost optimization

due to priority based pricing model

Improved incident

SLA/OLA from 93% to 98%

Faster and accurate

changes by leveraging Service Request factory

High Customer

satisfaction score: 9 out of 10 consistently

Innovations yielded

$925,000 in cost savings

RESULTS

Transforming from service SLAs to business outcomes-based delivery for an American manufacturer of food, chemical and consumer products

Challenge

A $1.3-billion manufacturer of food, chemical and consumer products was struggling with a lack of transparency on application state and performance issues that impacted operations. The firm wanted a single support vendor with a scalable and flexible global delivery model.

Solution

We were selected as the end-to-end application maintenance support service provider and required to meet business-based SLAs in terms of system availability, performance, capacity and compliance.

Impact

Improved line of sight across IT

to deliver to a specific business service

100% accuracy

in month and quarter end finance close cycles

28% reduction

in incident ticket volume

Improved

first call resolution from 59% to 72%

System refresh down time

reduced from 15 days to 8 hours using Cognizant tools

We were selected as the end-to-end application maintenance support service provider and required to meet business-based SLAs in terms of system availability, performance, capacity and compliance.

Impact

  • Improved line of sight across IT

    to deliver to a specific business service

  • 100% accuracy

    in month and quarter end finance close cycles

  • 28% reduction

    in incident ticket volume

  • Improved

    first call resolution from 59% to 72%

We were selected as the end-to-end application maintenance support service provider and required to meet business-based SLAs in terms of system availability, performance, capacity and compliance.

Impact

  • Improved line of sight across IT

    to deliver to a specific business service

  • 100% accuracy

    in month and quarter end finance close cycles

  • 28% reduction

    in incident ticket volume

  • Improved

    first call resolution from 59% to 72%

RESULTS

End-to-end application support and application-based pricing for a leading global pharmaceutical company

Challenge

A $42.2-billion global pharmaceutical company wanted its SAP landscape consisting of more than 250 SAP systems to be supported by a vendor who could take end-to-end ownership of application support in a multi-vendor environment.

Solution

We were chosen as the single global SAP AMS provider. We re-aligned the support model, organization and teams to offer, common, standard support across SAP landscapes globally.

Impact

20% reduction

in overall cost of support by transitioning to a global managed services model

23% reduction

in ticket volume (from 4290 to 3300 tickets)

13% cumulative

committed productivity gains reflected in
year-on-year savings

17 innovations

implemented in 2014 for $1 million cost savings

Four new markets

added to the support services scope without any increase in support team size

RESULTS

Streamlining IT landscape for a leading UK-based energy and utilities company

Challenge

A £29.4-billion supplier of electricity and gas to businesses and consumers in the UK needed application support for a major SAP utilities-based module go-live along with service improvement and ticket reduction.

Solution

We partnered with the client for both implementation and support services with end-to-end ownership of application support, optimizing existing processes and driving adoption of new solutions in the utilities module across business.

Impact

30% reduction

in incident tickets from project

20% year-on-year

commitment to lower incident count and lower exception volumes

95% plus SLA

attainment since contract commencement

92% of team

offshore, resulting in lower TCO

Reduced user

errors through smoother batch runs

Cognizant

was awarded Managing Director’s special recognition award

RESULTS

Leading retailer boosts improvement, reduces costs

Challenge

A £6.3-billion pharmacy and healthcare product retailer in the UK wanted high service performance, resource optimization, a stable and well-managed landscape and to shift from a ticket-based model to managed services.

Solution

We took end-to-end ownership of all application support activities, provided around the clock in-office support for critical areas and adhered to business process-based SLAs. We scaled up and supported the introduction of new technologies such as SAP Customer Activity Repository on HANA and business warehousing on HANA.

Impact

40% reduction

in incident tickets in two years

0% year-on-year

committed productivity improvement

28% reduction

in mean time to resolution (from 6.05 hrs. to 4.32 hrs.)

250-plus

service improvements delivered

90% of the team based

offshore, resulting lower cost for support

RESULTS

Managed support services for a leading electrical equipment manufacturer in U.S.

Challenge

A $3-billion leading electrical equipment manufacturer in U.S. wanted to free its internal team from support activities and deploy them for strategic initiatives. In addition, there was a lack of expertise in niche skills and the cost of support was high.

Solution

As the managed services support partner, we took
end-to-end ownership for support services across North America, Europe and Asia/Pacific.

Impact

Improved forecast

accuracy to +/- 3 % as compared to earlier +/- 20 % by redesigning demand planning (APO-DP) processes

30% reduction

in average number of days to resolve ticket

Eliminated 3-4 hours

of downtime per week for planners through SAP APO realignment business process improvement

50% improvement

in database utilization

Quotation margin

manipulation tool improved speed and quality of strategic quotation price

Value

adds worth $1 million through innovation

RESULTS

Packaged solutions firm lowers costs, gains efficiency

Challenge

A $5.6-billion producer of packaging, specialty papers, consumer and office products wanted to free its employees from application maintenance activities and deploy them for value-added initiatives.

Solution

We partnered with the client and took end-to-end ownership of application support and set-up a cross application and geography-based Change Advisory Board for global demand and capacity management. We maintained consistent delivery of service levels and around the clock on-call support across geographies.

Impact

22% year-on-year

productivity gains over 5 years

Reduced mean time

to resolution from 11hrs. 20 minutes to 4hrs. 19 minutes

Average number of tickets

resolved per resource improved from 14 to 37 in 5 years

100%

SLA adherence

Value adds

worth $1.2 million through innovation
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