SAP Product Lifecycle Costing

Companies today are highly focused on providing innovative, customer-driven products at the most competitive prices. Being able to quickly assess costs is hereby key. With SAP Product Lifecycle Costing, companies can now quickly identify cost drivers along the product lifecycle and easily simulate and compare alternatives by using the SAP HANA-based real-time calculation engine.

To gain control of the levers of profitability, companies need to be able to integrate market requirements and cost information at an early stage of the product lifecycle. By identifying cost potentials and having transparency throughout the lifecycle, companies can better maintain product quality, drive profit margins, and mitigate risks.

Yet, what is needed in terms of visibility, insight, and precision is beyond the functional capabilities of the software widely in use today. Customers still often need to piece together data extracted from enterprise software and other software solutions, homegrown or stand-alone systems. Performing calculations using disparate data, however, has inherent problems. There is no calculation history and the data flow cannot be easily tracked and traced. It requires a great deal of manual, time-consuming effort. Plus, the data has a high potential for inconsistency and deviations.

Calculating costs faster and more reliably in real-time

Together with more than 20 co-innovation customers, we conducted numerous design thinking workshops as well as usability tests and ultimately developed a solution that allows customers to make an accurate cost calculation for a new product early on in the product lifecycle, at the engineering or quotation stage: SAP Product Lifecycle Costing. The solution uses data from the already existing enterprise software and helps to quickly build out this calculation to prepare preliminary cost estimates. Moreover, analyzing and comparing options allow for making the most favorable product costing decisions for the entire lifecycle of the specific products.

Want to learn more about this product? Then contact Jochen Rode (jochen.rode@sap.com).