⟫ Business Case
Grow with SAP — Value Driver ROI Model
18 value drivers × 4 categories × 5-year cashflow projection
Revenue
Required — drives all calculations
Finance Base
Tier 1: 1-24 — ₱23,409/user/mo
SCM Base
Tier 1: 1-24 — ₱23,409/user/mo
Operations
Self-Service
50 total users — ₱17.4K/user/month blended
Annual Benefit
Conservative
₱1.53M
0.8% of revenue
Annual Benefit
Average
₱1.87M
0.9% of revenue
Annual Cost of Inaction
Bleeding per year
₱1.53M
₱4.2K / day
5-Year Cost of Inaction
If you do nothing
₱7.66M
vs ₱69.58M investment
Year 1 Total Cost
Impl + subscription
₱27.73M
₱17.26M impl + ₱10.46M sub
Payback Period
Cashflow positive
5yr
-90% 5-year ROI
33% of total
12% of total
44% of total
11% of total
Addressable Spend
Sourcing and Procurement
Days Payable Outstanding
Sourcing and Procurement
Days Sales Outstanding
Enterprise Finance
Days in Inventory
Enterprise Analytics
Revenue Leakage
Digital Core
Marketing Cost
Sales and Marketing
Logistics Cost
Digital Core
IT Spend
Digital Core
Customer Service Cost
Customer 360
Supply Chain Planning Cost
Enterprise Analytics
What doing nothing costs this company — the number you show the CEO.
Annual Cost of Inaction
₱1.53M
₱4.2K per day
5-Year Compounded
₱7.66M
vs ₱69.58M SAP investment
Inaction vs Investment Ratio
0.1×
₱ prevented per ₱1 invested
Cost Breakdown by Pain Area (Default modules)
⏰ Total Cost of Inaction — This Company
Annual (all pain areas)
₱157.63M
5-Year Compounded
₱890.06M
For every ₱1 invested in SAP, you prevent ₱12.8 in losses
| Year | Implementation | Subscription | Total Cost | Benefits | Net Cash Flow | Cumulative |
|---|---|---|---|---|---|---|
| Year 0 | ₱17.26M | — | ₱17.26M | — | (₱17.26M) | (₱17.26M) |
| Year 1 | — | ₱10.46M | ₱10.46M | ₱765.7K | (₱9.70M) | (₱26.96M) |
| Year 2 | — | ₱10.46M | ₱10.46M | ₱1.53M | (₱8.93M) | (₱35.89M) |
| Year 3 | — | ₱10.46M | ₱10.46M | ₱1.53M | (₱8.93M) | (₱44.82M) |
| Year 4 | — | ₱10.46M | ₱10.46M | ₱1.53M | (₱8.93M) | (₱53.76M) |
| Year 5 | — | ₱10.46M | ₱10.46M | ₱1.53M | (₱8.93M) | (₱62.69M) |
Finance Base
20 users × ₱23,409/mo
SCM Base
15 users × ₱23,409/mo
Operations
10 users × ₱4,750/mo
Self-Service
5 users × ₱1,018/mo
Subscription by Year (+3.3%/yr)
Y1
₱10.46M
Y2
₱10.81M
Y3
₱11.16M
Y4
₱11.53M
Y5
₱11.91M
Hard-Dollar ROI is Challenging
Conservative ROI of -90% at this revenue size. The Cost of Inaction is still ₱1.53M/year, but the investment doesn't recover more than it costs on direct savings alone.
Consider: phased approach starting with FI/CO to reduce Year 1 cost, or reframe the business case around growth capacity rather than cost savings.
“Sir, the reason companies your size invest in SAP isn't to save ₱5M — it's because you can't grow from ₱200.00M to ₱600.00M on Excel. The system IS the growth engine.”