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Case Study: McKinsey & Company achieves stronger ERP value validation with SAP
A SAP Case Study
Rewiring value creation with Value Finder and SAP
McKinsey & Company supported a major chemicals/agriculture client facing a challenge to validate and refresh the business case for a $200m SAP S/4HANA greenfield transformation after a 40%+ sales decline and shifting market conditions made the original 2022 assumptions outdated. Using SAP, including SAP S/4HANA, SAP Ariba, SAP Fieldglass, and SAP Signavio with McKinsey’s Value Finder, the team re-baselined the program just before go-live and defined new metrics to prove value to executives and the board.
McKinsey & Company and SAP implemented a 4-week re-baselining effort that used latest financial data and process measurements to pinpoint value opportunities and reduce go-live risk. The results included a projected ~$20-50m increase in recurring EBITDA value, ~$30m in working capital improvement, ~$10-40m in cumulative ERP value, and $50-90m in additional opportunities identified, along with 21 automation rates benchmarked and 11 go-live risk-mitigation recommendations.
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