Case Study: SAP Audit Defense for a Multinational Swiss Company
Challenge
A leading multinational Swiss company with over 100,000 employees and operations in more than 50 countries faced an SAP compliance audit alleging significant non-compliance issues. SAP’s audit report highlighted discrepancies in indirect access, licensing misalignments, and unreported usage across the company’s global operations. The initial financial exposure was estimated at CHF 25 million. Given SAP’s critical role in supporting the company’s supply chain, finance, and human resources, the stakes were high. The company engaged Redress Compliance to:
- Assess the validity of SAP’s audit findings.
- Identify areas of over-licensing and potential misconfiguration.
- Negotiate a resolution with SAP to mitigate financial exposure.
- Implement long-term strategies to prevent future compliance risks.
The Process
- Audit Review and Analysis: • Conducted a comprehensive review of SAP’s audit report and identified overestimations in user counts and indirect access claims. • Evaluated license usage across all global operations to map actual usage against entitlements. • Reviewed historical contracts and agreements to ensure SAP’s claims aligned with the contractual terms.
- Usage Validation and Optimization: • Validated indirect access scenarios to challenge inflated usage claims. • Identified underutilized licenses and recommended reallocations to align with operational needs. • Discovered opportunities to reduce license requirements through consolidation and process optimization.
- Strategic Negotiations with SAP: • Presented a corrected usage report to SAP, demonstrating discrepancies in the original findings. • Highlighted the company’s proactive compliance measures and long-standing partnership with SAP. • Negotiated a significantly reduced settlement, including additional value through new license agreements tailored to future needs.
- Implementation of Governance Practices: • Developed an internal compliance framework, including automated tools to monitor SAP license usage in real time. • Delivered training sessions for IT and procurement teams to improve understanding of SAP’s licensing models. • Established periodic internal audits to ensure ongoing compliance and prevent future disputes.
Results
- Financial Outcome: • Reduced the financial exposure from CHF 25 million to CHF 1.5 million, achieving a 94% reduction. • Negotiated a forward-looking agreement that provided additional licensing value and flexibility.
- Operational Improvements: • Reallocated underutilized licenses, ensuring optimal resource utilization. • Implemented real-time monitoring tools to track SAP usage and prevent future non-compliance.
- Strategic Outcomes: • Strengthened governance processes to enhance compliance transparency. • Improved SAP license utilization across global operations. • Secured a collaborative relationship with SAP, minimizing risks of future audits.
Quote from the CIO:
“Redress Compliance’s expertise in SAP audit defense was transformative. Their strategic approach reduced our financial exposure and strengthened our internal processes. They were a trusted partner throughout this challenging experience.”
Key Results:
- Initial Financial Exposure: CHF 25 million.
- Final Settlement: CHF 1.5 million (94% reduction).
- Compliance Enhanced: Real-time monitoring and governance framework implemented.
- Operational Efficiency: Optimized SAP license allocation and usage.
This case underscores Redress Compliance’s ability to deliver significant financial and operational benefits, ensuring compliance, cost reduction, and long-term risk mitigation for global organizations facing SAP audits.
