AMS cost is not what you pay the vendor. It’s what the system forces you to repeat.
Attribution
Creator: Dzmitryi Kharlanau (SAP Lead).
Canonical: https://dkharlanau.github.io/datasets/ams/ams-052.json
JSON (copy / reuse)
{
"id": "ams-052",
"title": "TCO & ROI in Modern AMS: Measuring What Actually Matters",
"hook": "AMS cost is not what you pay the vendor. It’s what the system forces you to repeat.",
"idea": "Modern SAP AMS calculates Total Cost of Ownership (TCO) and Return on Investment (ROI) based on demand drivers, instability, coordination overhead, and prevented work — not ticket counts or hourly rates.",
"core_principle": "If you don’t measure avoided cost, you will never justify prevention.",
"tco_model": {
"direct_costs": [
"Vendor base fees",
"Internal AMS FTE cost",
"On-call and overtime",
"Licenses and tooling directly tied to AMS"
],
"indirect_costs": [
"Business downtime and delays",
"Manual workarounds by users",
"Rework after failed changes",
"Coordination and escalation overhead",
"Audit findings and remediation effort"
],
"hidden_costs": [
"Repeat incidents (same root cause)",
"Knowledge gaps and onboarding time",
"Emergency changes and rollbacks",
"Vendor conflict resolution time",
"Upgrade-related firefighting"
]
},
"cost_attribution": {
"dimensions": [
"Business flow (OTC, P2P, RTR, MDM)",
"Incident family / demand driver",
"Change class (standard / normal / high-risk)",
"Vendor boundary",
"System or landscape segment"
],
"rule": "Every AMS hour must be attributable to a driver — or it is waste by default."
},
"baseline_establishment": {
"why": "ROI without a baseline is storytelling.",
"baseline_window": [
"3–6 months historical data minimum",
"Incident volume and repeats",
"Average resolution time",
"Change-induced incidents",
"Manual effort per incident family"
]
},
"roi_calculation": {
"investment_types": [
"Problem elimination",
"Automation and standard changes",
"Data quality gates",
"Knowledge structuring (RAG)",
"Process and governance improvements"
],
"roi_components": [
{
"component": "Cost avoided",
"examples": [
"Repeat incidents eliminated",
"Manual steps automated",
"Coordination loops removed"
]
},
{
"component": "Risk avoided",
"examples": [
"Fewer P0/P1 incidents",
"Lower audit exposure",
"Reduced regression probability"
]
},
{
"component": "Capacity freed",
"examples": [
"Hours shifted from Run to Improve",
"Reduced onboarding time",
"Lower reliance on scarce experts"
]
}
],
"simple_formula": "ROI = (Cost Avoided + Risk Avoided + Capacity Value) / Investment Cost"
},
"effectiveness_metrics": {
"stability": [
"Repeat incident rate trend",
"Change-induced incidents",
"Error budget burn rate"
],
"efficiency": [
"Cost per resolved business impact",
"Average effort per incident family",
"Standard change ratio"
],
"learning": [
"Knowledge reuse rate",
"Automation hit rate",
"Onboarding time reduction"
],
"trust": [
"Pre-request engagement rate",
"Decision adoption rate",
"Emergency request trend"
]
},
"result_evaluation": {
"short_term": [
"Stability improvement within 1–2 quarters",
"Visibility of real cost drivers",
"Reduction in chaos and escalations"
],
"mid_term": [
"Downward TCO trend",
"More capacity for prevention",
"Fewer urgent changes"
],
"long_term": [
"Predictable AMS spend",
"Lower SAP lock-in cost",
"AMS recognized as decision partner"
]
},
"decision_support_with_numbers": {
"rules": [
"Always show do-nothing baseline cost.",
"Use ranges, not false precision.",
"Separate delivery cost from run cost delta.",
"Make assumptions explicit."
],
"example_statement": "This automation costs ~X once, reduces ~Y hours/month, pays back in ~Z months, and lowers regression risk in OTC pricing."
},
"automation": {
"copilot_moves": [
"Attribute AMS effort automatically to cost drivers.",
"Estimate avoided cost from eliminated repeats.",
"Simulate ROI scenarios for prevention vs delay.",
"Generate CFO-ready TCO/ROI summaries."
],
"outputs": [
"AMS TCO dashboard",
"ROI-by-initiative table",
"Cost avoidance trend report"
]
},
"anti_patterns_to_kill": [
"ROI based only on vendor rate reduction",
"Counting closed tickets as value",
"Ignoring cost of instability",
"One-off savings without sustainability"
],
"design_question": [
"If we stop this initiative today, which costs will immediately come back?"
],
"meta": {
"schema": "dkharlanau.dataset.byte",
"schema_version": "1.1",
"dataset": "ams",
"source_project": "cv-ai",
"source_path": "ams/ams-052.json",
"generated_at_utc": "2026-02-03T14:33:32+00:00",
"creator": {
"name": "Dzmitryi Kharlanau",
"role": "SAP Lead",
"website": "https://dkharlanau.github.io",
"linkedin": "https://www.linkedin.com/in/dkharlanau"
},
"attribution": {
"attribution_required": true,
"preferred_citation": "Dzmitryi Kharlanau (SAP Lead). Dataset bytes: https://dkharlanau.github.io"
},
"license": {
"name": "",
"spdx": "",
"url": ""
},
"links": {
"website": "https://dkharlanau.github.io",
"linkedin": "https://www.linkedin.com/in/dkharlanau"
},
"contact": {
"preferred": "linkedin",
"linkedin": "https://www.linkedin.com/in/dkharlanau"
},
"canonical_url": "https://dkharlanau.github.io/datasets/ams/ams-052.json",
"created_at_utc": "2026-02-03T14:33:32+00:00",
"updated_at_utc": "2026-02-03T15:29:02+00:00",
"provenance": {
"source_type": "chat_export_extraction",
"note": "Extracted and curated by Dzmitryi Kharlanau; enriched for attribution and crawler indexing."
},
"entity_type": "ams_byte",
"entity_subtype": "",
"summary": "AMS cost is not what you pay the vendor. It’s what the system forces you to repeat."
}
}