The Power of Effective CapEx Management

Introducing our inaugural publication of "Spotlight on CapEx for SAP"! This regular publication will provide insights and the latest news, designed to empower you to maximize your Return on Invested Capital (ROIC) by overcoming CapEx management challenges. Stay-tuned for expert analyses, best practices, and innovative strategies to optimize your CapEx processes and unlock greater financial performance.

Microsoft’s Record CapEx to Fuel AI Dominance

Microsoft is the world’s most valuable company with a market capitalization of over US$3trn. ?Over the last 5 fiscal years Microsoft has increased CapEx from 10% to 13% of revenue. In the quarter ended March 2024, CapEx surpassed 22% of revenue. Wall Street pundits are anticipating combined CapEx by Microsoft, Amazon, Alphabet and Google to exceed US$1trn within 5 years.

Like every platform technology from railways, to telecommunications, the spoils will go to the first movers. Whether the AI hype justifies these stratospheric investments or not, the fact remains: CapEx today is essential to underpin your growth for the future. Are you spending enough, and are you optimizing your potential returns?

How Much Are Capital Project Approvals Holding You Back?

The complexities of approval workflows in capital project management often lead to bottlenecks, delays in project execution, and challenges in maintaining data accuracy and transparency throughout the decision-making process.

We deconstructed the two core components of a common approval process : Data Entry and Workflow Routing. This should give you a fresh look at their impact on the overall Capex process which ultimately affects your entire organization.

The #1 Barrier to Efficient CapEx Management is Reliance on Excel Spreadsheets

Ah, the trusty Excel spreadsheet – a staple in many financial arsenals. It has its place for sure, but accelerating approval processes and being a single source of truth aren't among them. Organizations globally are pinpointing this as a place to start improving their capex planning, budgeting and approval processes. It is clear to executives that to improve efficiency and data accuracy; Manual data entry, version control woes, and limited automation need to be addressed.

You can find more on this topic by reading Why do 85% of SAP customers rely on Spreadsheets for Capital Planning? or watch the SAUG webinar below:

Navigating the Pros and Cons of SAP Investment Management

Embarking on an upgrade journey like moving to SAP S/4HANA isn’t just about new tech—it’s a strategic shift that can redefine how you manage capital. Take a moment to re-evaluate SAP Investment Management (SAP IM) during these upgrades, especially considering two crucial factors:

1. The demand for more efficient capital expenditure management.
2. The golden opportunity presented by system upgrades.

?In the article, Pros and Cons of SAP Investment Management in S/4HANA we outline SAP IM's functionalities, benefits, limitations, and functional constraints within S/4HANA. This aims to provide you with insights to make informed decisions about implementing or improving SAP IM, ultimately optimizing your capital budgeting processes.

Unlocking the Future of Capital Budgeting: Introducing Stratex Online, Your SaaS Alternative to EPPM

Have you explored Enterprise Project Portfolio Management (EPPM) and found it too expensive or complex for your capital budgeting needs? Turn your attention to Stratex Online, IQX's innovative solution that blends our CapEx expertise, client insights, and seamless 3rd party and ERP integration. This Software as a Service (SaaS) platform is specifically designed to address large organization’s capital budgeting requirements, this video shows you how.

Thank you for joining us. We're committed to being your trusted resource for navigating capital expenditure challenges and driving greater Return on Invested Capital (ROIC).

From insightful analyses to practical strategies, we aim to empower informed decisions to optimize your CapEx returns and achieve your strategic goals sooner. Stay tuned for more valuable insights and strategies to enhance your CapEx processes.