Assumptions Register

Complete register of assumptions underpinning the business case with classification, sensitivity, and ownership

Total Assumptions
15
High Sensitivity
6
Require close monitoring
Medium Sensitivity
7
Low Sensitivity
2

Full Register

ID Area Assumption Classification Source Sensitivity Owner
A-01 Revenue Agilent revenue grows at 3.5% CAGR (2026-2035) Assumption Management guidance, analyst consensus High FP&A
A-02 WACC Discount rate of 9.5% based on Agilent's current WACC Source Treasury / Capital Markets High Treasury
A-03 Benefits Benefit realization begins 1 quarter post go-live with 25/50/75/100% ramp Expert SAP implementation benchmark data Medium PMO
A-04 Benefits Direct materials savings of 0.3% achievable via improved demand planning Assumption Industry benchmark (Hackett Group) High Supply Chain
A-05 Benefits Inventory cash release of ~1% of inventory value as one-time benefit Assumption SAP reference customers in life sciences Medium Supply Chain
A-06 Costs SI labor costs based on Tier-1 integrator rates for 3-year program Assumption KPMG / Deloitte benchmark High Procurement
A-07 Costs SAP RISE license escalation of 3.3% per annum Source SAP commercial proposal Medium IT / Vendor Mgmt
A-08 Timeline 3-wave regional deployment: Americas (2027-Q2), EMEA (2028-Q1), APAC (2028-Q3) Recommendation SI assessment and Agilent readiness High PMO
A-09 Timeline Legacy ERP fully decommissioned by end of 2029 Assumption Contractual end dates and migration plan Medium IT
A-10 Benefits Legacy ERP annual savings of $15M achievable post-migration Source Current IT run-rate analysis Low IT Finance
A-11 Organization 18-24 month change management program runs in parallel with deployment Recommendation Best practice for enterprise ERP transformation Medium HR / Change Mgmt
A-12 Benefits Tax optimization benefits assume automation of transfer pricing and indirect tax Expert Tax advisory assessment Medium Tax
A-13 Architecture Clean core strategy with <5% custom ABAP; extensions via BTP Recommendation SAP Clean Core methodology Medium Enterprise Architecture
A-14 Data Master data remediation required for material, vendor, and customer masters Expert Data quality assessment High Data Governance
A-15 Benefits No incremental AI/ML benefits quantified; treated as upside optionality Expert Conservative approach per steerco guidance Low CTO

Assumptions Governance

Recommendation

Review Cadence

  • High sensitivity: Review monthly at PMO level; escalate changes to Steering Committee
  • Medium sensitivity: Review quarterly as part of business case refresh
  • Low sensitivity: Review semi-annually or on material change

Validation Process

  • Each assumption has a named owner responsible for validation
  • Changes to high-sensitivity assumptions trigger business case re-run
  • Sensitivity analysis quantifies NPV impact of assumption variance
  • Assumptions register is a living document updated throughout program