A new IT system can only offer an organization added value or concrete advantages when it is able to contribute more to achieving higher level organizational objectives than the previous system(s). In this context and in view of the considerable changes in the organizational and process structure resulting from the implementation of a new IT system or from changes to an existing system, the cost efficiency analysis must entail a multi-dimensional procedure. It must provide the most comprehensive comparison possible between the new or changed IT system and the one discarded (or about to be discarded) in terms of costs and benefits. This is why we carry out a procedure for the cost efficiency analysis that includes the following analysis levels:

• process level,
• work center level,
• company level,
• cross-company level.  

This procedure makes it possible to systematically identify and analyze costs and benefits. For the analysis of the situations before and after the IT system change, data necessary for the usage analysis (process sequences, quantities, etc.) are gained through structured interviews and automated procedures using, for instance, the Reverse Business Engineering tool. The RBE tool provides you an extremely ef-ficient way of extracting data relevant for the usage analysis from the SAP system.

Depending on the point at which a cost efficiency analysis is performed, a distinction is made between analyses conducted before and after this point. Analyses con-ducted prior to this point are handled as preparatory measures taken toward mak-ing an investment decision. Analyses conducted after this point are used to evaluate the IT investments. Oftentimes the implementation of a new IT system or the mo-dification of an existing one brings about such drastic changes, that the “old” organizational structure is no longer compatible with the new processes. This often results in some concrete redeployment of time and effort, which tends to give the impression that the new IT system generates more work, although the big picture shows just the opposite. The multi-dimensional cost efficiency analysis not only provides monetary and qualitative proof of the new IT procedure’s efficiency; it also reveals the potential benefits or hindrances to cost efficiency at the above-men-tioned levels. Through targeted adjustment of the organizational and process struc-tures, these benefits can then be utilized to their full potential.