Case Study: Centrica - TCO comparison

Total cost of ownership review for ERP systems

As a result of acquisitions, the Division of Centrica which supplies gas and electricity to UK businesses wished to compare the capital and operating costs of two competing software solutions; SAP and an industry vertical solution already operating within one operating company within the Division.

The challenge was to determine whether the vertical solution could deliver the breadth of functionality required by other Divisional operating companies, and a significant cost reduction compared to the original SAP solution estimate.

We managed the process of business requirements scope finalisation for the different businesses, and evaluation of the vendor solution proposals and costings for the vertical solution. We enabled Centrica to fully evaluate the cost reduction opportunity and risks associated with both products, to support their final Board level decision.