Executive Summary

Agilent Technologies — SAP S/4HANA Transformation Business Case — 10-Year DCF Analysis (2026–2035)

Net Present Value
$20.3M
WACC 9.5%
Internal Rate of Return
12.5%
Above hurdle rate
Total 10-Year Benefits
$437.3M
16 benefit line items
Total 10-Year Costs
$298.5M
Implementation + run
Payback Period
2032
Year 7 of program
10-Year ROI
46.5%
Total return on investment

Annual Benefits vs. Costs

Cumulative Net Cash Flow

Benefits by Category (10-Year Total)

Category 10-Year Total % of Total
Finance & Accounting Process Automation $124.6M 28.5%
Supply Chain & Manufacturing $56.0M 12.8%
Inventory Optimization $97.8M 22.4%
IT Cost Rationalization $158.9M 36.3%
Total Benefits $437.3M 100.0%

Regional Deployment Strategy

Americas

2027-Q2
Projected Go-Live
Revenue: 38% FTEs: 35%

EMEA

2028-Q1
Projected Go-Live
Revenue: 30% FTEs: 30%

APAC

2028-Q3
Projected Go-Live
Revenue: 32% FTEs: 35%

Recommendation

Board Decision Required

Proceed with SAP S/4HANA greenfield implementation via RISE with SAP (Private Edition). The 10-year business case projects $20.3M NPV at a 9.5% WACC, with an IRR of 12.5% and payback in 2032. The three-wave regional deployment (Americas → EMEA → APAC) balances risk mitigation with time-to-value. Total benefits of $437.3M are driven primarily by IT cost rationalization and supply chain optimization, against total costs of $298.5M.

Classification: Recommendation — This recommendation is based on the financial model, strategic fit analysis, and migration path assessment. All underlying assumptions are documented in the Assumptions Register.