SAP BPM Strategy for Process Improvement

SAP Enterprise Modeling Applications (ARIS):
The first step in your BPM strategy for SAP
•Sarah White, SAP Quality and Risk Management
•Solution Engineer

Today’s Dynamic Business Environments
Demand a New Approach to Managing Business Processes
Business changes Businesses forming Closer Business and
more rapidly global networks IT alignment is imperative

Business & IT
Speed of change! Global Networks! alignment!

…requiring processes to span …requiring tools that foster the
…requiring processes that can across organizational and collaboration between LOB who
easily be adapted geographical boundaries defines processes and IT who
implements processes

Get There Faster.

CIO’s Prio 1: Business Process Improvement
According to 2010 Gartner Survey among 1,600 CIOs worldwide

# Business Priorities
1 Business process improvement

2 Reducing enterprise costs

3 Increasing the use of information/analytics

4 Improving enterprise workforce effectiveness

5 Attracting and retaining new customers

6 Managing change initiatives

7 Creating new products or services (innovation)

8 Targeting customers and markets more effectively

9 Consolidating business operations

10 Expanding current customer relationships

Source: Source: Gartner EXP (January 2010)
Get There Faster.

Obstacles to Change Existing Business Applications
Agile processes need more functionality
Business Process Agility is becoming a standard requirement for IT and
“ business .” Gartner (G00138195)

Considering your existing enterprise app implementations,
how important are the following business problems?
(percent answering “important” or “very important”)
Inflexibility limits process changes 77 %

Lack of visibility into process results 77 %

Poor cross-functional processes 76 %

Business requirements vs. apps mismatch 76 %

Poor internal/external collaboration tools 65 %

Can’t extend processes to external partners 53 %

Poor industry-specific functionality 47 %

Source: Forrester Research, Inc. September 2007, Base: 75 Business and IT decision-makers
Get There Faster.

What is Business Process Management?

Business Process Management (BPM)
Business Process Management (BPM) refers to the integrated and continuous analysis,
design, implementation, execution, measurement and monitoring of business processes in
order to increase effectiveness and efficiency with respect to the corporate strategy.

BPM also covers the process-related environment, such as organizational structures, people,
and technology. In particular it deals with cross-functional and inter-organizational business
activities.

Process Management Lifecycle (PML)
PML is SAP's BPM model. It covers the
whole lifecycle of a business process and
can therefore be used within process
projects. PML can also be used during the
execution and monitoring of existing
business processes.

Get There Faster.

Why Customers Care?
It's a Matter of Survival: Use BPM Business expectations for IT focus on improving
to drive out costs current operations and performance
BPM gives companies visibility into

“ processes that are key to cost management.
BPM is a lifeline in this troubled economy. It
helps companies find and avoid hidden costs
— to keep companies in business.

Discover expenses that can be avoided
Bring visibility to hidden costs and take action
Reduce costs and errors associated with
compliance requirements
*Source: Gartner Executive Programs - Meeting the Challenge: The 2009 CIO Agenda
Source: Gartner, March 2009

Companies in a broad range of industries
are reporting measurable paybacks from
BPM
30-45% reduction in process operating costs
50-75% reduction in end-to-end process
completion time
60-90% reduction in time to change
business requirements
75-90% reduction in manual operations
errors
Source: Gartner Get There Faster.

The Value of BPM: The Link Between a Focus on Process
Excellence & Higher Market Valuations

Get There Faster.

SAP Enterprise Business Process Management Life Cycle
Analyze: Design:
SAP Business Process
SAP Enterprise Modeling by IDS
Optimization by IDS Scheer
Scheer
Identify process weak points and
Analyze and optimize existing processes
bottlenecks
Design processes on a conceptual level
Determine utilization of resources
Achieve process governance and assign
Analyze KPIs to enable sound process ownership
justification of suggested process
improvements

Monitor:
Implement:
SAP Process Performance
Management by IDS Scheer SAP Enterprise Modeling by IDS
Measure performance of existing Scheer with integration to
processes Solution Manager
Visualize, document and analyze the Accelerate Implementation via pre-
actual performed processes prepared content
Increase visibility via full integration of all
Business Process and Enterprise
Run: Architecture components and
SAP NetWeaver BPM advanced reporting

SAP Enterprise Modeling
Integration with SAP ESR

Get There Faster.

SAP Enterprise Business Process Management
Life Cycle - Design

Design:

Scheer
Analyze and optimize existing
processes
Design processes on a conceptual
level
Achieve process governance and
assign process ownership

Get There Faster.
29 June 2010 | ProcessWorld 2010 | 9

Business and IT Challenges
Head of Business
Department How can I make my processes understandable and how
do I visualize and communicate them in ONE common
language?
What potential saving does establishing best practices in
my processes bring about?
How can I improve adaptation of our IT to my business
processes?

Bridge the Gap

IT Manager
Where do synergies occur in the IT environment and how can
I avoid redundancies?
What action do I need to take in the event of a system failure?

>> Company-wide, distributed design of business processes and IT
architectures.
Get There Faster.

Enterprise Architecture Environment
Branch
Branch
Manager

Branch Branch
Front Office Back Office

Relationship Service Organization
Manager Specialist

Client Relationship
Relationship Bank
Account Manager Application
Data Client product Portfolio
Master requested
Client Data Account Account
Master Management Management
Data Application
Application
Account Open
Opening new
Client Form account Card
Retail Management
Name Application
Account

Lending
Client Application
Address

Account Account
for new for existing Saving
Product Application
Data
client opended client opened

Data
Process Application

Bank Products
& Services

Retail Retail Retail Retail Retail Product/
Lending Saving Cards Payment Account
service

Get There Faster.

Adapt SAP Enterprise Modeling to Your Needs...
... by creating your own model types and methods.

Core business process

Main business process

Business process

Process step
Get There Faster.

Modeling and Analysis: Roles and Tools Involve the Business Users
SAP Enterprise Modeling by IDS Scheer
Process Manager IT Architecture Manager
Business Architects IT Development Planner

Write

Write
SAP Business Designer by IDS
SAP Business Designer by IDS SAP Business Publisher by IDS
SAP Business Publisher by IDS
Scheer
Scheer UMG Gr up

ni
o

U t ed Motors U ted Motors
ni
Scheer
Scheer
Gr u p
o G p
rou
E cuti e Board
xe v S ervsory Board
up i

Person who models
Uni e dMo o r
A
t
utomo i ve
t
t s

Engi nee r ng
i
U t ed Motors
ni
Bank
U ted Motors
ni
Car Ren a l
t
A mi i strati n &
d n o
Shared Servces
i

Readers = Technical
departments / Staff in
tc a t n oc r e m ts uC
o

Read
yr ev l e d e c i h v l i t n
i l e u

the processes
n PRO - P O-OR D E R
R
1 I ns t 2
0
Cst m r
uo e Pr o edv h l
e-wn e ic e OR DER

Write
has

P O-OR D E R
R
I ns t 1
2
r o y d er e lc i h e V
f a
yr ev i l d
e
Ve c
hi le
Cu om
st er i enfi ao
d ti c i t A -P L A N I ns t 1
ID A-PL A N
nnm er
ub

e m cl W
o e
re m t su c
o A -P L A N I ns t 2

Na e
m M eae
il g

Y rof
ea
m nu c re
a a tu
f

e l a l i v a n i- d ar
b a e T
e c i h v f i kc e hC
l e
s i l p a n i- d ar t
e p e

t n n i- d ar
o e T
elb li v
a a a
A -P L A N I ns t 3

A-PL ANIn t4
s

A-PL ANIn t5
s

A-PL ANIn t6
s
charge
T d-inpss l
rae o i eb A-PL ANIn t7
s

A u t om o t ve
i
E n g i ne e ri g
n

Ca r C ar a cc e s so ri s
e S e rvi ce s

E x e cu t i ve c a r U M G. t o p S p are p art s 24 h se rvi ce

C om p ac t c ar U MG. f a mi l y A c c es s ori e s M ai nt en an c e
& tu n n g
i an d se rvi ce

ARIS
Worldwide process design Repository
Write
SAP Business Process Optimization by IDS Scheer
SAP Business Process Optimization by IDS Scheer

Person who
analyzes the
processes

Get There Faster.

SAP Enterprise Modeling Applications by IDS Scheer

SAP Enterprise Modeling Application Product Bundles
SAP Enterprise Modeling Application Product Bundles

SAP Business Designer by IDS Scheer
SAP Business Designer by IDS Scheer


SAP Business Process Optimizer by IDS Scheer
SAP Business Process Optimizer by IDS Scheer

SAP Business Publisher by IDS Scheer
SAP Business Publisher by IDS Scheer

SAP Process Performance Management by IDS
SAP Process Performance Management by IDS
Scheer
Scheer
Get There Faster.

Life Cycle - Implementation

Implement:

Scheer with integration to
Solution Manager
Accelerate Implementation via pre-
prepared content
Increase visibility via full integration
of all Business Process and Enterprise
Architecture components and
advanced reporting

Get There Faster.

Implementation… Key Building Blocks

Utilizing SAP’s Business Process Close the IT / Business Gap
To accelerate your Implementation
Repository With Systematic alignment

SAP Solution Manager SAP Enterprise Modeling

Get There Faster.

SAP Solution Manager and SAP Enterprise Modeling
Synchronization: Structure
SAP Solution Manager SAP Enterprise Modeling

Synchronize

Project Scenario Process Process Step/Transaction
Get There Faster.

Synchronization: The Models
Event Driven Process Chain Value Added Chain Diagram (VACD)
(EPC)

Value Added Chain Diagram (VACD)

Functional Allocation Diagram (FAD)

Project Scenario Process Process Step/Transaction
Get There Faster.

Synchronization: Model Build Out Example

Original Built Out Example
Event Driven Process Chain (EPC)

Get There Faster.

Documentation and Training embedded in
Business Process Architecture
Documentation Call

Transaction Call
Get There Faster.

Synchronization: Updating SAP Synchronized Objects

Original Updates Solution Manager Blueprint Structure and
Configuration
EPC with SAP object added in SAP EM

Get There Faster.

Process Oriented Configuration from SAP Enterprise Modeling
to Solution Manager

Solution Manager

ERP - IMG

Get There Faster.

SAP Enterprise Modeling Process and Project Accelerators
Process Oriented Configuration
TO-BE Processes
Blueprint
Documentation

Process Oriented Testing

Business Processes in
SAP Enterprise Modeling Process Oriented Training

Process Performance Monitoring

Use AS-IS Process
Redocumentation (Solution
Documentation Assistant, etc)
for Upgrade Preparation
Get There Faster.

Life Cycle - Run

Run:

SAP NetWeaver BPM

Integration with SAP ESR

Get There Faster.

Enterprise Multilevel End to End Concept: Top-Down Approach
in SAP Enterprise Modeling

Supply
Process management

area
Level 1

Inventory
management
Main process
Level 2

Goods
receipt
Process
Level 3

Send
shipping
Process Step notification

Level 4

Automatic
email with PO
Transactions/Enterprise Services confirmation

Level 5
Get There Faster.

Automating non-standard processes can be challenging
Because traditional applications are often too inflexible to change

Out-of-the-box software is well-suited to manage standard
processes
Best practices provided by standard software such as SAP Business Suite
applications, e.g.
Order processing
Sell tangible goods from stock
Procure to pay
…

But what if you want to automate non-standard processes?
To create innovative, differentiating, company-specific processes, e.g.
Specific approval processes
New product introduction
Negotiate new purchasing contracts with suppliers
Traditional applications are often too inflexible for fast-changing business
processes
Implementing new processes takes too much time and is too costly

Get There Faster.

Business Process Management covers both automated and manual
perspective
Business Process Modeling in SAP EM

Manual Activities
End to End process spans
Typically >80% manual and automated
activities

Automated Activities
Typically <20% Of the 20% of Automated
Activities

NW BPM
Typically <20%
Processes that deliver competitive
advantage and evolve regularly Differencing Activities
(SOA –Candidates)

Typically >80%

Standard Software
Standard Activities
Processes that should be as cost
effective as possible

Get There Faster.

Business Process Excellence with SAP
SAP Enterprise Modeling applications by IDS Scheer complement the
Business Process Management capabilities of SAP NetWeaver

Business to Model Model to Execution
SAP NetWeaver
Business Process
applications
Management

SOA Design
Governance

Process Process
Process
Composer Desk
Desk

Process Server

Get There Faster.

Enterprise Modeling
From Conceptual Planning to Technical Blueprints
Conceptually describe the business Developing processes for
Support implementation and gap analysis execution
SAP Enterprise Modeling Applications
by IDS Scheer

Business Architecture Information
Value Chain Diagram Architecture

Organizational Structures

Enterprise
Event-driven Process Chain Architecture

Transactions Services

Synchronization

SAP
Solution Manager Provide Enterprise SOA
content >> Consolidated view on application core
for planning and gap analysis <<

Get There Faster.

Enabling SOA Service Discovery
Engineering & Architecture
SAP Enterprise Modeling by IDS Scheer Enterprise Services Repository 7.1

Annotations
of Business Models
With Enterprise
Services or
other ES Repository
modeling objects

S
RI
o rA
ef
lu s iv
c
Ex

Seamless Integration of Business Process Architecture
Seamless Integration of Business Process Architecture
based on ARIS ES Repository Integration
based on ARIS ES Repository Integration
Get There Faster.

Benefits of SAP Enterprise Modeling – Enterprise
Services Repository Integration
SAP Enterprise Modeling by IDS Scheer with Enterprise Services Repository
integration supports
Process-driven requirements analysis
Alignment of business process requirements and SOA
Link of business blueprints to service realization
Reuse of existing interfaces and services
Modeling and sharing of multiple planning scenarios in SAP Enterprise Modeling before implementation
Requirements analysis can define the need for new services

Get There Faster.

Business Process Modeling Notation 2.0
Improve Collaboration Between Business and IT

Business IT

Business-friendly Developer-friendly
process modeling perspective implementation perspective
(in SAP SAP Enterprise Modeling or NetWeaver BPM) (in SAP NetWeaver BPM)

Si n g
Procele
M od s s
el

From modeling (no coding!) … to execution (no translation!)
Get There Faster.

Innovate New & Adapt Processes on Top of a Stable Core
Building composite processes on top of the SAP Business Suite
Process Innovation Value Proposition
Define a common business process layer
SAP BPM suite of choice for SAP customers
SAP NW SAP NW
Enterprise Extend the reach of BPM technology to enable
BPM BRM
Modeling completely new process scenarios

Composite Business Processes
Compose new business processes
Extend core business processes
Reuse service-enabled application core
processes (2,800+ ready-to-run services)
Enhancement
Packages

SOA-enabled Application Core Processes
Non-SAP
SAP Business Suite
All SAP applications on SAP NetWeaver
SAP NetWeaver Non-SAP applications integrated with
SAP NetWeaver
Process Excellence
*SAP NetWeaver Composition Environment is a model driven development environment for processes, views and business logic
Get There Faster.

Sweet Spots for BPM
Based on Beta Program and Design Partner Council customers

Business
Composite Extended
Use Case Process
Applications Processes
Improvement

Build a new module Extend ERP Implement BPM as
or process not approval process part of business
Description available from SAP (e.g. procurement). process re-
using CE, BPM and Use BRM to engineering. NW &
BRM implement rules ARIS deployed to
(e.g. price support BPM
calculation) in ERP Lifecycle

Primary
Platform Applications Consulting
Driver

Beta
Reference

Detailed caseGet Therein wiki
studies Faster.

Life Cycle - Monitor

Monitor:
SAP Process Performance
Management by IDS Scheer

Measure performance of existing
processes
Visualize, document and analyze the
actual performed processes

Get There Faster.

Continuous Improvement of
Business Process Performance
Monitor
Business What Transparent end-to-end processes
Performance

Reveal cause & effect chains
Recognize optimization potential
Analyze
Business How
Persistent, automated Performance
monitoring of
performance indicators

Analyze Structures Why
Dimensional of Processes
Analysis of and of Organization Who
Process measures

Determine patterns
in processes and Establish
organizational structures Continuous
Improvement
Get There Faster.

Life Cycle - Optimize

Optimize:
SAP Business Process
Optimization by IDS Scheer

Identify process weak points and
bottlenecks
Determine utilization of resources
Analyze KPIs to enable sound
justification of suggested process
improvements

Get There Faster.

SAP Business Process Optimization
by IDS Scheer
Enhance SAP Enterprise Modeling for conceptual business process simulation
and optimization
Dynamically analyze business processes
Use simulated KPIs to evaluate a range of alternatives
Determine optimal procedures

Get There Faster.

Why SAP?
SAP Offers a Holistic BPM Approach
Comprehensive Solution Lower TCO
State of the art, standard based Leverage best practices delivered by SAP
composition tool (no coding, no Business Suite results in faster time to
translation) value

Flexible and open technology foundation Manage full process life cycle for
to effectively extend core business continous process improvement
processes

Lower risk Proven Value
Standardized process notation fosters Customers and partners are successfully
tighter alignment between business & IT extending process automation of core
business processes for fast evolving needs
Vibrant ecosystem of partners and
community Holistic BPM approach accelerates &
guides BPM adoption (methodology,
certification, technology)

Get There Faster.

Thank you!

Sarah White, Solution Engineer
SAP Quality and Risk Management

SAP BPM Strategy for Process Improvement

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to SAP BPM Strategy for Process Improvement

Similar to SAP BPM Strategy for Process Improvement (20)

More from Palisade Corporation

More from Palisade Corporation (20)

SAP BPM Strategy for Process Improvement