Who is Konica Minolta?
Market-leading provider of print technology and services Konica Minolta has over two million customers worldwide consuming its sought-after solutions including traditional, industrial and 3D print, robotics, imaging, and its variety of tailored content and print services. Locally, Konica Minolta Australia has about five hundred employees servicing over eight thousand customers – an impressive footprint.
Why a new SAP Support approach?
Konica Minolta was previously limited by the lack of flexibility in its [Functional and Basis] SAP Support arrangement, there was no carry forward of unused time or cross-functional use of time. Its IT leaders felt that Konica Minolta would benefit from a more flexible support model with a partner they could trust and communicate well with.
“We knew we were missing out on the benefits of a personalised SAP service experience.” – Nick Jones, CIO
Konica Minolta was also looking for an SAP partner that brought thought leadership; the capability to deliver strategic SAP technology roadmaps and ideally the implementation activity set out in those roadmaps. At this time, Konica Minolta had an ageing, on-premise, and heavily customised SAP landscape with significant technical debt. It was rethinking its foundations and planning a transformation program involving a move to S/4HANA, so selecting a customer-focused SAP partner that was experienced in S/4HANA transformations was vital.
What is the new SAP Support solution?
In January 2020, Konica Minolta entered a new, flexible SAP Support agreement with Zag, now Zag part of Accenture (Zag). With a wide range of customer engagement models and support services to choose from, the final arrangement was determined based on Konica Minolta’s requirements and business objectives and further tailored according to the makeup of its IT team (and the experience they had in supporting SAP solutions).
“We selected Zag as our SAP Support partner because they were a perfect size and fit – they have a large local resource pool and a comprehensive range of SAP service offerings, yet they are small enough to actively demonstrate they care about the quality of customer service they are providing.” – Nick Jones, CIO
The ‘Controlled Environment’ supported by Zag comprises of the Production and all other Non-Production environments of Konica Minolta’s SAP landscape, including their SAP Enterprise Resource Planning (ERP), Business Warehouse (BW), Customer Relationship Management (CRM) and Solution Manager (Solman) systems, to name only a few.
In this agreement, Zag provides the following services:
- Base Services
- Reactive Support – Incidents and Problems
- Reactive Support – Service Requests
- Proactive Support – Preventative Maintenance Management
- Proactive Support – Preventative Maintenance Execution
Konica Minolta opted for a split between fixed time and materials and Evenflow billing for three years from the SOW commencement date. Base Services, including Service Delivery Management and access to Zag’s ITSM Knowledge Base, are delivered at a fixed price while Evenflow billing is applied to both Reactive and Proactive Support services.
In an Evenflow model, the monthly invoice contains one consistent charge as agreed upon, accompanied by an activity report that outlines what work has been completed, how much of the budget had been utilised and a closing balance. The balance between billed and utilised is carried forward each month, allowing high use months to be balanced out and a bank of time to be built up.
“Zag’s Evenflow support model was really appealing to us, as we’re only paying for what we use but the costs are still evenly spread across the year.” – Nick Jones, CIO
What are the benefits experienced?
Since it entered an SAP support agreement with Zag, Konica Minolta has seen a faster resolution of issues. This is largely due to clear lines of accountability from having one point of contact; a dedicated Zag Service Delivery Manager responsible for ensuring the quality-of-service delivery to Konica Minolta and the first point of escalation for all issues related to the services provided by Zag. With less time spent on resolving issues and fighting fires, Konica Minolta’s employees can now focus on proactive projects (within their transformation program) that deliver business value.
Konica Minolta is reaping the cost benefits of Zag’s Evenflow ‘pay for what you consume’ model, and with access to Zag’s wider resource pool (on-shore and near-shore), Konica Minolta doesn’t need to hire people to cover the expertise needed for every SAP module in their environment.
“We’ve already seen a major improvement in the quality of service we’re receiving and are enjoying working with a company that shares our values and with who we have an excellent culture fit.”
– Nick Jones, CIO