Smarter processes - IBM Business Connect Qatar
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Smarter processes - IBM Business Connect Qatar Presentation Transcript

  • 1. Accelerating SAP Value with IBM BPM Logan Vadivelu BPM Technical Leader and SAP SME
  • 2. 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
  • 3. 4 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. 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!
  • 5. 6 SAP Process Optimization Gaps • Not clear what the currently running processes really are • Limited real-time operational visibility FlexibilityVisibility 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?
  • 6. 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
  • 7. 8 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
  • 8. 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 ReusabilityProductivity 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 ReusabilityProductivity SLA / KPI Collaboration L6 – Sub-Transaction and Exception Management Record Keeping (SoR) Data Integrity Exception Management Reporting Data ReusabilityProductivity 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 ReusabilityProductivity SLA / KPI Collaboration L1 L2 - Group L3 - Process L4 - Activity L5 – SAP Transactions Category Business Process Hierarchy L1 L2 - Group L3 - Process L4 - Activity L5 – SAP Transactions CategoryBusiness Strategy Operation Process
  • 9. 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
  • 10. 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 Flow 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 ERPCRM ERP
  • 11. 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
  • 12. 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.
  • 13. 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
  • 14. 15 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
  • 15. 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
  • 16. 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
  • 17. 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 23
  • 18. 19 Generate Guided Workflow for Imported Process Configure SAP server and run default guided workflow
  • 19. 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.
  • 20. 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
  • 21. 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 information9. 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
  • 22. 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
  • 23. 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
  • 24. 25 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
  • 25. 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. StableSAP Implementation
  • 26. 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
  • 27. 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
  • 28. 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
  • 29. 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
  • 30. 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*
  • 31. 32 IBM Confidential 32 32 Questions + = Enables Innovative Business Model