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Author's profile photo Mona Schoeffler

SAP Benchmarking – A Helpful Tool on the Journey to the Intelligent Enterprise

Why benchmarking?

To become a digital, intelligent enterprise, organizations need to rethink existing processes and use digital technologies to establish new, more efficient practices. However, before organizations can take the first steps to optimize their own processes, they are faced with numerous strategic questions: What priorities should I set? In which process areas should I start the transformation? Which process areas benefit the most from a redesign?

To answer these questions, benchmarking is a promising solution. Benchmarking means comparing processes and performance indicators with other organizations from the same or a different industry and closing the key performance gaps compared to other, more efficient organizations. With regard to the process landscape of an organization, benchmarking analyzes current procedures and identifies potential for process optimization.

SAP Benchmarking – How does it work?

SAP provides a benchmarking tool within the SAP Value Lifecycle Manager that enables companies to evaluate their processes and key performance indicators (KPIs). The tool shows best practices which help companies find out how they can optimize their processes through the use of digital technologies.


In the tool, participants are asked about current processes and key figures and receive a personalized scorecard at the end of the survey process. This scorecard shows the maturity of the digital processes and the comparison with other companies. In addition, the tool provides concrete recommendations for process optimization based on the results. These insights help set the “right” priorities in digital transformation and target the “right” IT solutions.



Source: SAP Value Management


SAP’s benchmarking tool is a secure platform – customer data is protected, kept strictly confidential, and all portals are GDPR compliant. Company-specific profile data is not shared and is only used to create fully neutralized benchmark peer sets.

Why benchmarking is also useful and important for public administration

Benchmarking is also a useful tool for public sector organizations to become more digital and agile in their management. Here too, the question arises as to where the greatest potential for digitalization can be found and where significant added value can be generated for the employees of the administration as well as for the citizens and customers. SAP software solutions help digitize and simplify administrative processes. As a first step, SAP Benchmarking helps organizations identify specific, individual needs and helps them prioritize their digital transformation projects accordingly. Not only does this involve comparison with other organizations, but also awareness of the maturity of the processes.


Source: SAP Value Management


Top 4 reasons to use SAP Benchmarking:

  1. Identify and prioritize potential:Companies identify the key areas for process improvements.
  2. Basis for business cases:Organizations measure and evaluate different KPIs to determine the savings potential of SAP solutions.
  3. Outside and Inside Organization Benchmark:Companies can compare themselves with other institutions, or compare departments within their company.
  4. Continuous Performance Management:The SAP benchmarking tool can be used as an ongoing performance management instrument. By continuously measuring current performance and comparing it to previous performance, companies can ensure the success of their digitalization efforts.

For more information, see here.

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      Author's profile photo Kee Wong
      Kee Wong

      Hello Mona,

      This is an interesting addition to the VLM tool offered by SAP. Could you please share with us the source of the benchmarking data? It is good for us to know how we stack up against our peers/industry, but we would also like to know who we are measuring up against.

      As more companies use this feature, could you please let us know if the data entered by customers gets added into the benchmarking pool, and if so, does someone in SAP verifies and curate the information?

      Thank you


      Author's profile photo Mona Schoeffler
      Mona Schoeffler
      Blog Post Author

      Hello Kee,

      Thanks for your question.

      Benchmarks in VLM are calculated using the survey responses from the customers. There should be minimum 7 valid customer responses to get a benchmark value for a particular peerset. The data is validated by the survey owners before it is counted for benchmarking.

      Hope this helps.