smarter processes - ibm business connect qatar

Accelerating SAP Value with IBM BPM

Logan Vadivelu

BPM Technical Leader and SAP SME

3

Topics

• The Process Imperative for SAP Implementation

– Business challenges faced by customers due to silo-ed systems and broken processes

• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape

• Introducing IBM BPM Capability for SAP

– Enables business flexibility without complex and costly SAP customizations

• Demo – A Day in the Life of Order to Cash

4

Topics







5

Evolution of Business Drivers in the Packaged Applications Space

Reduce

Custom

Coding

and related costs

Flexibility

Application

Configuration

Improved

System-Level

Collaboration

SOA and Application

Integration

Active

Business

Performance

Optimization

Orchestration and

Inline Automated

Decision Making 1980’s 1990’s 2000 - present FORWARD!

6

SAP Process Optimization Gaps

• Not clear what the currently running processes really are

• Limited real-time operational visibility

Flexibility Visibility

Agility Control

SAP configuration and customization typically deployed at major release boundaries

Slow to respond to change “at the pace of business”

Achieved through complex configuration and customization of SAP today

Proliferation of customized SAP transactions

Limited process compliance and operational cost control capability

Unnecessary or counterproductive tasks are often performed

Know the status of key processes?

Get real-time visibility into bottlenecks?

Effectively reroute work to less experienced workers?

How can the average SAP

customer:

Know which process changes are most likely to help?

Quickly rollout process changes?

Quickly integrate new process workers into your business?

7

Top SAP Challenges

• Informal and incomplete process management paradigm

• Complex configuration and transaction tailoring

• Frustrating user interface and other usability issues

Inadequate operational visibility,

flexibility, agility and control

A transaction-centric business

driven by custom reports and

informal compensation

Best business optimization options

not clear

Over-differentiation resulting in excessive customization

Over-differentiation resulting in excessive functional extension

Under-differentiation that negatively impacts business performance

SAP Issues Business Challenges

Design Tensions

8

Topics







9

Managing Processes for Better Business Benefits Varying Capabilities Required across process levels to address Business Challenges

L6 – Sub-Transaction and Exception Management

Record Keeping (SoR)

Data Integrity

Exception Management

Reporting

Data Reusability Productivity

L1

L2 - Group

L3 - Process

L4 - Activity

L5 – SAP Transactions

SAP

Category

Business Process Hierarchy

(System of Engagement)

(System of Record) BPM

Flexibility

Visibility

Simplicity Optimization

Automation Mobile access

Agility

Consistency

Reusability Productivity SLA / KPI

Collaboration

L6 – Sub-Transaction and Exception Management

Record Keeping (SoR)

Data Integrity

Exception Management

Reporting

Data Reusability Productivity

L1

L2 - Group

L3 - Process

L4 - Activity


SAP

Category


(System of Engagement)

(System of Record) BPM

Flexibility

Visibility

Simplicity Optimization

Automation Mobile access

Agility

Consistency

Reusability Productivity SLA / KPI

Collaboration

L1

L2 - Group

L3 - Process

L4 - Activity


Category


L1

L2 - Group

L3 - Process

L4 - Activity


Category Business Strategy

Operation

Process

10

An Example of applying BPM to manage ERP BPM enables Level – 3 process modeling, orchestration of Level-4s and provide visibility

Level 4 Process Step

Verify Customer & Product Info

Credit Limit Exceeded ?

Yes

No Create Delivery

Manager Approval

Credit Approved ?

Yes

No

Pick & Pack Goods

Post Goods Issue

Enter Order Data

Auto Release Block ?

Yes Release Credit Block

Review Credit

Increase

No Hold Order

Invoice Customer

Post Payment

Level – 3 Process - - Order-to-Cash

11

BPM helps Extend SAP Processes Across the Enterprise For Wider Reuse to Increase ROI

Web Order Capture Process

B2B Order Capture Process

CSR Order Capture Process

Mobile Order (Sales Rep)

Capture Process

Activity

Flo

w

Level – 3 Processes

In BPM

Level – 2 Process Group

In BPM

Level - 4 in SAP and below in BPM

BPM enables, supports and manages higher level

processes (Level 1 – 3)

SAP + BPM typically support Level-4 and

lower processes

Business Users

ERP CRM ERP

12

Combining the ‘best of the both’ Worlds ….

• The premiere integrated business application platform

• Robust and complete transactional capabilities

The premiere BPM platform, providing a formal

and complete process management paradigm

Simple process configuration and SAP

transaction tailoring

Flexible, highly productive user interface

The right amount of process differentiation,

driven by business need – not time and cost

Transactional Layer

Process Layer

13

Manage Your Business at the Process Level While minimizing SAP complexity, configuration and customization

• Optimize business processes by providing visibility, agility and control for all processes

• Simplify work content, business processes and the management approach

• Increase efficiency and control with consolidated task management across all your applications

• Empower the business with real-time analytics and optimized decision making

• Reduce SAP customization and configuration through business-user-focused capabilities

• Enable continuous process improvement

Move your business to a

process-driven paradigm with

integrated modeling,

orchestration, monitoring and

optimization.

14

Surround SAP With a Highly Flexible Process Layer

Transaction Orchestration

End to End Orchestration

Sub-Transaction Orchestration + Visibility

Orchestrated Exception Processes

Real-Time Monitoring and Operational Insight

Orchestrated Value Management Processes

Forensic Process Discovery

Empirical Process Characterization

Iterative Business Blueprinting

IBM BPM for SAP introduces a radically superior process paradigm for SAP

15

Topics







16

Core IBM BPM for SAP Capabilities

• Apply the right mix of process innovation capabilities based on:

– Process characteristics

– The level of optimization desired

– Current process innovation maturity

Business Optimization Potential

Reduce blueprinting time, cost and risk

Improve process reliability, flexibility, visibility and control

Improve process efficiency and reduce business

complexity

Innovation

Iterative Business

Blueprinting

Process Integration and Orchestration

Process Automation

Process Discovery and

Monitoring

Decision Automation

Guided Workflow

Mine SAP Business Events to discover actual processes and act in real time to business challenges

Use an iterative, experiential-based approach to accelerate traditional SAP blueprinting with SAP Solution Manager

Interactively guide end users through SAP screens to improve productivity, visibility and consistency

Optimize process steps to improve cycle time, manageability and visibility of key processes

Dramatically reduce the cycle time of high volume processes by reducing/removing human interaction

Automate complex decision making to reduce bottlenecks and improve business outcomes

Transformation

17

IBM BPM Integrates Seamlessly with SAP Design-time and Run-time Integration for leveraging SAP functionality

FI Financial

Accounting

CO Controlling

PS Project System

WF Workflo

w IS

Industry Solutions

HR Human

Resources

MM Materials

Mgmt.

SD Sales &

Distribution

PP Production Planning

QM Quality Mgmt.

PM Plant

Maintenance

SM Service Mgmt.

EC Enterprise Controlling

AA Asset

Accounting

SAP

Applications

Upload processes to Solution Manager

Download processes from Solution Manager

Orchestrate SAP Processes and

Services

Retrieve Enterprise Service Definitions

Monitor SAP Business Events

s

18

IBM BPM Guided Workflow Requires Limited IT Involvement

Import the SAP Business Process Hierarchy (BPH) into

IBM BPM

Launch a new process instance or select from your inbound task list.

Complete your SAP transaction. Review the process picture, see who has worked on previous process steps, leverage previous process collaborations

1

2 3

19

Generate Guided Workflow for Imported Process Configure SAP server and run default guided workflow

20

IBM BPM Guided Workflow Enhances the User Experience The SAP GUI is Automatically Surrounded by Rich Process Tools for Every End User

Standard or ‘Z’ SAP GUI

Process Status (Diagram)

Process History

Process Collaboration

History

Process Experts

Community

Process instance data

from previously

steps can be pre-loaded

into the SAP screen

Process Launch Bar

Launch any process for which a user is authorized

See a pictorial process history and downstream steps

See a detailed stream showing all process steps completed thus far

See the complete collaboration history for the current process step

Instantly contact an identified expert in the current process step

IBM BPM Guided Workflow for SAP automatically transforms any SAP GUI into a rich process workspace,

tightly integrated into its process context.

21

Guided Workflow Enables Iterative SAP Process Blueprinting

Use ‘live’ process execution to design and test SAP business processes, then implement your SAP process using the same tool!

Model Processes

Playback Process

SAP Guided Workflow

Monitor Results

Enrich, Configure, Simulate and Refine

Test and Deploy

SAP Solution Manager, Aris,

etc.

Design, build and refine processes for execution in a single integrated tool set. Optionally store process definitions in SAP Solution Manager Repository.

Iteratively invoke or design screens as part of the process definition exercise

Playback modeled processes at any time to directly see, feel and touch the real process

Empirically understand how the process can meet KPIs and SLAs

Simulate changes without changing the current model process. Incorporate new process changes.

Promote the new or changed process into production

22

Orchestrate and Automate Complex E2E Processes

1. Order is received from the web site

3. Credit check and approval are completed

5. Required components are determined, ordered, allocated and received

4. Customer order is written and confirmed for production

6. Production order is completed and warehoused

7. Customer order is approved for shipment

8. Customer order is picked from warehouse and scheduled for shipping

2. Customer records are updated with order request information

9. Customer order is invoiced

End-to-End Process Choreography

Retrieve Customer

Master Data IBM BPM SAP

Integration Module

Create Sales Order IBM BPM SAP

Integration Module

Create Order BOM

Cost Estimate IBM BPM SAP

Integration Module

Create Notification IBM BPM SAP

Integration Module

IBM BPM Order to Ship End-To-End Process

23

Understand and Manage Any Process – Even Without Orchestration!

• Gain real time operational insight. Monitor total cycle time, process step cycle time, lag times between process steps, average queue size, actual queue at time of execution

• Orchestration is not necessary! Identify exception process frequency and causality

24

Benefits of SAP Business Activity Monitoring View SAP and other system

transactions as processes – without process orchestration!

Easily understand the complex network of business transactions within SAP or across systems

Empirically categorize process characteristics and performance issues

Minimally intrusive to SAP – configure the SAP Business Events needed

Minimize the time required to prepare for a new SAP implementation, a version migration or process innovation

Minimal disruption to your SAP environment

25

Topics







26

Use IBM BPM Throughout Your SAP Life Cycle A New SAP

Implementation

SAP Version Migration

Continuous SAP Process Optimization

End-to-end Process Integration

Functional Extensions and Customizations

Any SAP Implementation can benefit from every IBM BPM capability at every life cycle stage.

Sta

ble

SA

P

Imp

lem

en

tatio

n

27

IBM BPM for SAP Value

• Reduce SAP customization costs by 50% or more

• Reduce time required for SAP changes by 50% or more

• Improve business process cycle time and costs by up to 80%

• Reduce process bottlenecks by 75% or more

• Improve productivity by 250% or more

• Decrease time to market by 25% or more

• Improve process visibility, flexibility, agility and control

• Dramatically simplify your business, while providing high

process compliance

28

How does IBM BPM enhance Traditional SAP? Process Monitoring & Discovery - Visibility across processes in SAP & other applications

Blueprinting - integrated with SolMan, but using IBM agile BPM Playback Methodology

Guided Workflow – implementing business user screen flow w/o written code

Process Orchestration – deeper process management of transactions

Decision Management - Extending SAP Logic – using natural language, your vocabulary & simple logic vs.

code

Process Integration – across SAP and non SAP, multiple departments and manual steps and exceptions (e.g. Order to Cash)

Keep SAP clean – avoid bespoking e.g. for differentiating fit/gap, move configuration complexity to the process layer

Process automation and optimisation

Agile business driven processes/rules

Reduce IT TCO

Productivity improvements

Faster process cycle times and time to market for process/rule changes

29

Start Here

Example References by Maturity

• Automate a manual process

• Provide visibility

• Faster cycle times

• Improve compliance

• Innovation

• Go to market

• Customer centricity

• Product flexibility

• Industry standards

• Economies of scale (factory

approach)

• Accelerate Time to value

• Prebuilt assets / reuse

• Standards (business + IT)

First Project

- Point solutions - Early wins

Program - industrialisation

- Optimize projects - Extend to new projects

Transformation

-LoB, Enterprise focus -Align strategy and execution -e.g. Globally integrated enterprise

Adoption and Maturity

Note 1: Non SAP context

Note 1 Utility Co. uses SAP for billing

but can’t optimise

BPM enhances Refund Process

-62% Faster cycle time

20 FTE reduction

ROI after 14 months

Business users directly manage the changes to the business process

Business users built and deployed 200 processes to production within 18 months

SAP Harmonisation project to transform time to market for new products

EU Utility

30

Common IBM BPM for SAP Use Cases

• Revenue optimization - adaptive processes that modify, reduce or eliminate steps based on revenue optimization rules

• Supply chain exception handling – manage the complex web of supply chain exceptions in a systematic, yet flexible manner to decrease time to problem resolution and optimize revenue

• Design/execution integration - monitoring and orchestration to help improve collaboration and process execution reliability across PLM, ERP and B2B activities

• New product introduction - process orchestration and monitoring to reduce time to market and time to value

• Vendor sourcing – flexible processes to streamline the integration of new purchased material sources • New pricing release - process orchestration and data quality assurance to improve new pricing KPIs • New employee onboarding - reduce cycle time and costs throughout the requirements, recruiting,

hiring and onboarding processes • Replacement of traditional treatments for SAP custom development - use cases are client-specific • SAP CoEs - many clients are looking to including IBM BPM as part of their SAP and process innovation

CoE strategy and execution - use cases are client-specific

31

#1 in BPMS market share

IBM is the proven leader in all aspects of BPM

*Source: IBM Press Release; http://www-03.ibm.com/press/us/en/pressrelease/37376.wss

IBM was named the #1 vendor in BPMS software with a 27.1 percent share, almost triple that of

its closest competitor*

32 IBM Confidential 32

32

Questions

+ = Enables Innovative Business Model

smarter processes - ibm business connect qatar

Technology