Value based management presentation at SAPPHIRE 2010

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Value based management presentation at SAPPHIRE 2010

  1. 1. Value-Based Management A SAP Framework for Creating, Realizing and Measuring Value ] by Prof. Dr. Mark von Rosing Henrik von Scheel[ ED HUDAK [ STEVE RUGGIERO ASUG INSTALLATION MEMBER ASUG INSTALLATION MEMBER MEMBER SINCE: 1998 MEMBER SINCE: 2000 [ SHERRYANNE MEYER ASUG INSTALLATION MEMBER MEMBER SINCE: 1999
  2. 2. [ The new ASAP Methodology support the 4 lifecycle ASAP Methodology including BPM Technology – BPM, SOA and Value perspective To Be Des ign Process Owner CIO Project Manager Business Unit Owner Process Management Performance Management Value Management Process/Perfor Gov. IT Gov. Project/Prog Gov. Business Governance Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  3. 3. [ Real-World BPM in an SAP Environment Applying Real-World BPM in an SAP Environment  Learn what BPM is and how to get started within and SAP context  Benefit from a comprehensive compilation of use- cases from early adopters  Discover SAP technology, methodology, performance metrics and governance Managing your business processes wisely is key to stay ahead of your competitors! This book is your guide to implementing Business Process Management in all its aspects in your SAPcentric business and IT: It explains how BPM and standard software work together, how to prepare your company for the project, and how to put technology, governance, and the philosophy behind it in action. Extensive use cases from well known SAP customers including technical and process details make this book a true real-world experience! Available end of September 2010 www.sappress.com Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel © SAP 2009 /
  4. 4. [ Learning Points  Learn how to apply a business value management road map from SAP  Discover how a company can create, realize, and measure business value  Explore a value-based management approach that can create the needed value companies are looking for todayReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel 4
  5. 5. [ Value planning – Value identificationReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  6. 6. [ Value planning, value identification and value creationReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  7. 7. [ Value planning, value identification, value creation, and value realization - Competing on standardsReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  8. 8. [ Value planning, value identification, value creation, and value realization - Competing on differentiationReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  9. 9. [ Competences and Value Creation?Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  10. 10. [ Competences and Value Creation?Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  11. 11. [ Competences and Value Creation?Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  12. 12. [ Competences and Value Creation?Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  13. 13. [ Competences and Value Creation?Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  14. 14. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  15. 15. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  16. 16. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  17. 17. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  18. 18. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  19. 19. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  20. 20. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  21. 21. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  22. 22. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  23. 23. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  24. 24. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  25. 25. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  26. 26. [ Value Planning, Creation and Realization - competenciesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  27. 27. [ The ASAP 7.0 - Competency Based Subject approachSubjects approach with more business focus Subjects approach with more IT focus• Business Model competencies • IT – End-user Focus competencies• Value Management competencies • IT - Software competencies• Performance competencies Business Process competencies • Master Data competencies• Business Governance competencies • IT - System competencies• Service Orientation competencies • Enterprise Architecture competencies Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  28. 28. [ The Competency Based Subject approach Example: Business ProcessesThe Competency Based Subject approach stepsStep 1. Competency scanAsses As-Is competency stage (level 1 to 5)Step 2. Business Process ScanAsses Business parametersStep 3. Identify Core Competitive and CoreDifferentiated competenciesStep 4. All Competencies are both rated withtheir Revenue and Cost: High, Medium orLowStep 5. Value spots/drivers are identifiedStep 6. Define “To-Be” competency stageStep 7. Apply SAP BPM methodStep 8. Apply SAP BPM GovernanceProcess Management Life-Cycle (PML) Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  29. 29. [ Business Process Scanning ASAP Add-onDescription Business Process Scanning ASAP Add-on enables organizations to derive & prioritize process improvement projects in their companies with a clear link to their corporate strategies. The Business Process Scanning include 2 phases: Calibration: The objective of the Calibration phase is to reach agreement on a list of processes that are to be analyzed and optimized in the next phases. The first task is to understand the business and IT strategy of the company. This is a basic requirement for optimizing the processes and ensuring that optimization projects adhere to the overall strategy. The second step is to focus on the processes that are considered to have significant optimization and innovation potential. Based on the understanding of the process landscape and the related business success factors, processes can be evaluated and prioritized. AS-IS Analysis: After agreement is reached on the processes that are to be optimized, the objective of this phase is to understand the as-is situation of the selected processes and the IT landscape, and to identify weaknesses, pain points and as-is process performance measurements (PPI´s) in respect to cost, cycle time and cost . Having selected the relevant parameters (roles, costs, time, data and so on) for the process analysis, it is necessary to classify the processes based on their optimization potential to eliminate identified weaknesses. The as-is situation of the processes is documented in detail and all weaknesses identified are clustered in order to identify those with the greatest impact on the business.Real Experience. Real Advantage.
  30. 30. Business Process Scanning ASAP Add-on[ Process ParametersPurpose & Goal 5 1 Business Rules 8 2 KPIs (Key Performance Indicators)6 3Why is the Ultimate reason for the existence of Which rules Description of the operational How is the Definition of measurable indicatorsprocess the process govern the characteristics of the business process to verify whether the process goalsperformed? business? performance have been achieved Example: Getting the right products Example: Prioritization guidelines, disturbances, decision processes measured? Examples: No. of created to the right person at the right time based on existing sales orders purchase orders, process cycle time 1,2,3,Objects 7 4 Process Owner 2 & 10 Which Processes result in the manipulation Who is Managers with end-to-endobjects of physical or informational objects. responsible for responsibility for individualare used, The two most important objects are the process? processesmodified, and input and output.produced? Examples: Purchase order, invoiceTechnology 9 7  Process Roles 4 5 What kind of Systems, tools, and hardware used Which roles Definition of all resources involvedtechnology Example: SAP SRM need to in performing the processenables the contribute to Examples: Hiring manager,process the process recruiter, HR Business Partnerexecution? execution?Media 10 6 Process Flow 3 8 Organizational Units 1 9By which Means of communication used Which Definition of process sequence Which Processes are performed by one ormedia do Examples: Paper, fax, e-mail processes and process interfaces, input and organizational more organizational units.processes precede and output units own the Examples: Business department,interact? follow? Example: Check availability, process HR, Controlling = As-Is = To-Be confirm delivery date execution?© SAP 2009 / Page 30 1 Where, who, what, why & how 1 Why, what, how & where Real Experience. Real Advantage.
  31. 31. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  32. 32. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  33. 33. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  34. 34. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  35. 35. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  36. 36. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  37. 37. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  38. 38. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  39. 39. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  40. 40. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  41. 41. [ Business Performance ManagementReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  42. 42. [ Performance Measurements exampleSBO = Strategic Business Objective Accelerate profitable growthBPI = Business Performance Indicator Growth +17% marketshareprofit +9%CSF = Critical Sucess Factor Increase new customer aquisition rateKPI = Key Performance Indicator 50 new customers per monthPPI = Process Performance Indicator Business transition rate = 60% The additional 5 Indicators Quality QI = Quality Indicator VI = Volume Indicator Inpu Proces Outp t s ut TI = Time Indicator EI = Efficiency Indicator Time Cost CI = Cost Indicator Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  43. 43. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  44. 44. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  45. 45. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  46. 46. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  47. 47. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  48. 48. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  49. 49. [ Alignment of Business and ITReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  50. 50. [ The Value Tree is a practical tool to help understand values Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  51. 51. [ The Value Tree is a practical tool to help understand values Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  52. 52. [ The Value Tree is a practical tool to help understand values Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  53. 53. [ Business Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  54. 54. [ Business Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  55. 55. [ The different Business Value areas – Increase Shareholder Value Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  56. 56. [ The different Business Value areas – Improve CompetitivenessReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  57. 57. [ The different Business Value areas – Lower RiskReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  58. 58. [ The different Business Value areas – Efficient OperationsReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  59. 59. [ Business Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  60. 60. [ How to understand and use the Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  61. 61. [ Business Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  62. 62. [ Business Value Tree – support Business Model imperativesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  63. 63. How the Business Model Imperatives are mapped[ to the different ValuesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  64. 64. [ Business Model Imperatives – FocusedReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  65. 65. How the Business Model Levels[ are mapped to the different ValuesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  66. 66. How the Business Model Competencies[ are mapped to the different ValuesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  67. 67. How the Business Model Competencies[ are mapped to the different ValuesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  68. 68. [ Case study “Arla Foods “IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Modularity BU RCH RE l TU de A SI IT EC o NE EC IT S M SS TU CH ES AR SIN BU RESource: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 68 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  69. 69. [ Case study “Arla Foods “IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Modularity BU RCH RE l TU de A SI IT EC o NE EC IT S M SS TU CH ES AR SIN BU RE AP RCH A el PL IT od IC EC M AT TU s es IO RE oc N PrSource: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 69 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  70. 70. [ Case study “Arla Foods “IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Modularity BU RCH RE l TU de A SI IT EC o NE EC IT S M SS TU CH ES AR SIN BU RE AP RCH A el PL IT od IC EC M AT TU s es IO RE oc N Pr TE CH AR CH ITE RE NIC CT TU IT AL AL URE EC CH IC AR CHN TESource: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 70 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  71. 71. [ Case study “Arla Foods “IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Modularity BU RCH RE l TU de A SI IT EC o NE EC Service IT S M SS TU CH ES AR SIN BU Orientation RE AP RCH A el PL IT od IC EC M AT TU s es IO RE oc N Pr Service Oriented Architecture TE CH AR CH ITE RE NIC CT TU IT AL AL URE EC CH IC AR CHN TESource: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 71 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  72. 72. [ Case study “Arla Foods “IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Modularity BU RCH RE l TU de A SI IT EC o NE EC Service IT S M SS TU CH ES BMM AR SIN BU Orientation RE AP RCH A el PL IT od IC EC M AT TU s es IO RE oc N Pr BPM Service Oriented Architecture TE CH AR CH ITE RE NIC CT TU IT AL AL URE EC CH IC AR CHN SOA TESource: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 72 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  73. 73. [ Case study “Arla Foods IT history” and the direction outlined in the strategic IT plan for 2007-2012.” Business Model Processes IT Source: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 73 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  74. 74. [ Case study “Arla Foods IT history” and the direction outlined in the strategic IT plan for 2007-2012.” (Standardized Technology and Optimized Core) Business Model Processes IT Source: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 74 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  75. 75. [ Case study “Arla Foods IT history” and the direction outlined in the strategic IT plan for 2007-2012.” (Standardized Technology and Optimized Core) (Business Modularity) Business Model Processes IT Source: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)© SAP 2009 / Experience. Real Page 75 Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  76. 76. [The Business Model linked to SAP Solutions SAP ERP Netweawer SAP CRM SAP SCM SAP SRM SAP PLM Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  77. 77. [The Business Model linked to SAP Solutions SAP ERP Netweawer SAP CRM SAP SCM SAP SRM SAP PLM Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  78. 78. [ SAP Solutions linked to Value Drivers Critical Success Strategic Support Activities Value Points Factors Objectives General Administration Increase focus on creditworthy customer Improve Capital Increase Operational Business Administration segments Management Efficiency Analytics Corporate Differentiate credit treatment of Service customers/segments Analytics / Product and Improve and standardize credit assessment Information Project Portfo. processes Integration Management Improve collections processes Financials Corporate Service Better alignment of business planning, Reduce Sales and Increase Shareholder management & reporting functions Administration Costs Value Corporate Financials Service Better alignment of financial accounting & analysis functions Drive greater financial predictability Optimize Intelligence Lower Risk Improve monitoring and management of risk and Optimize Regulation compliance Compliance Improve/implement internal control frameworks Improve Risk Planning and policies Improve company-wide monitoring and Improve Risk management of risks Management Improve identification and assessment of risk Increase emphasis on risk identification and management Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  79. 79. [ SAP Solutions linked to Value Drivers Critical Success Strategic Support Activities Value Points Factors Objectives General Administration Increase focus on creditworthy customer Improve Capital Increase Operational Business Administration segments Management Efficiency Analytics Corporate Differentiate credit treatment of Service customers/segments Analytics / Product and Improve and standardize credit assessment Information Project Portfo. processes Integration Management Improve collections processes Financials Corporate Service Better alignment of business planning, Reduce Sales and Increase Shareholder management & reporting functions Administration Costs Value Corporate Financials Service Better alignment of financial accounting & analysis functions Drive greater financial predictability Optimize Intelligence Lower Risk Improve monitoring and management of risk and Optimize Regulation compliance Compliance Improve/implement internal control frameworks Improve Risk Planning and policies Improve company-wide monitoring and Improve Risk management of risks Management Improve identification and assessment of risk Increase emphasis on risk identification and management Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  80. 80. [ SAP Solutions linked to Value Drivers Critical Success Strategic Support Activities Value Points Factors Objectives General Administration Improve production performance management Improve Development & Increase Operational Business Administration methods and tools Production Efficiency Analytics Corporate Improve materials performance management Service methods and tools Analytics / Product and Information Project Portfo. Improve logistics performance management Improve Logistics, Integration Management methods and tools Material & Services Corporate Improve material performance management Financials Service methods and tools Improve service performance management Corporate methods and tools Financials Service Improve procurement performance management Improve Corporate methods and tools Services Improve establishment of and adherence to service-level targets Improve HR performance management methods and tools Improve/consolidate IT performance management methods and tools Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  81. 81. [ SAP Solutions linked to Value Drivers Critical Success Strategic Support Activities Value Points Factors Objectives General Administration Improve sales performance management Improve Responsiveness Improve Business Administration methods and tools Competitiveness Analytics Corporate Improve service and support performance Service management methods and tools Analytics / Product and Improve Brand Awareness Information Project Portfo. Improve marketing and advertising performance Integration Management management methods and tools Corporate Reduce Sales and Increase Shareholder Financials Increase focus on business insight and forward- Service Administration Cost Value looking information Corporate Reduce business risk by aligning with changing Optimize Intelligence Lower Risk Financials Service market needs Reliable customer intelligence Improve identification and prediction of industry and market trends Secure use of information that is accurate and real-time Provide greater predictability in performance Improve access to information and analytical tools Improve analytical processes and tools Improve identification of opportunities and threats Better cost transparency Improve access to and distribution of performance information Improve analysis of managerial information Improve assessment and benchmarking of business process performance Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  82. 82. [ SAP Solutions linked to Value Drivers Critical Success Strategic Support Activities Value Points Factors Objectives General Administration Improve Corporate Increase Operational Business Administration Improve program management processes Services Efficiency Financials Corporate Better settings for innovation to flourish Strengthen Innovation Improve Service Competitiveness Improve project management Analytics / Product and Information Project Portfo. Improve utilization of product development Integration Management channels Financials Corporate Continuously track and manage the realization of Improve Risk Lower Risk Service project benefits Management Corporate Improve alignment of projects with program and Financials Service business objectives Improve assignment of resources to projects Improve coordination and communication across programs & projects Improve identification and management of program/project risks Structure programs/projects to deliver benefits progressively Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  83. 83. [SAP Solutions linked to Value Drivers Critical Success Strategic Primary Activities Value Points Factors Objectives Marketing, Sales & Service Improve campaign design and management Improve Customer Improve processes and tools Interaction Competitiveness Business Operations Marketing Sale & Improve sales forecasting and campaign Service execution processes and tools Improve marketing strategy Improve Brand Awareness Marketing Sales Tailor marketing approaches to customer segments Marketing Sales Develop and cultivate good will Develop and leverage strong brand Sale & Improve effectiveness of marketing and Marketing Service advertising processes Improve brand awareness/Elevate brand image Rationalize and/or refocus channel/media usage Improve brand strength and good will Optimize marketing channels Apply brand to new and unbranded products Increase emphasis on differentiated products Increase Revenue Increase Shareholder and services Through Price Value Optimization Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  84. 84. [SAP Solutions linked to Value Drivers Critical Success Strategic Primary Activities Value Points Factors Objectives Marketing, Sales & Service Gain market share while others recover from Increase Revenue Increase Shareholder external shocks Through Volume Value Optimazation Business Operations Sale & Penetrate new markets better and faster Marketing Service Enter new segments and markets Improve account management strategies Marketing Sales Refocus and/or refine retention priorities and strategies Marketing Sales Improve cross-sell and up-sell campaigns Tailor sales approaches to customer segments Marketing Sale & Service Target new segments within current geographies Strengthen customer base Increase sales by guaranteeing 24/365/100% availability Tailor account management approaches to customer segments Increase sales to existing customers Target new geographies Expand sales and advertising channels Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  85. 85. [ Business Value TreeReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  86. 86. How the key focus areas of Business Processes[ are mapped to the different ValuesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  87. 87. [ Business Value Tree – Responsible C-level ExecutivesReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  88. 88. How the responsible C-level Executives are[ mapped to the entire informationReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  89. 89. [ From Business Model to process breakdown and the connecting to the SAP system Bottom Up Approach Top Down Approach SAP Solution Composer SAP Solution ComposerReal Experience. Real Advantage.
  90. 90. [ Performance Measurements CFO – Example: Buttom up approach Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  91. 91. [ Performance Measurements CIO – Example: Buttom up approach Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  92. 92. [ Top Down approach: example 1: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  93. 93. [ Top Down approach: example 2: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  94. 94. [ Top Down approach: example 3: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  95. 95. [ Top Down approach: example 4: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  96. 96. [ Top Down approach: example 5: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  97. 97. [ Top Down approach: example 6: "Focused" Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  98. 98. [ SAPs ASAP 7 approach summery (BPM/SOA/EA)Business Model Level 1 Overal Strategic AnchoringMain Business Model with main • Corporate Strategic Business Objectives (SBOs)Business competencies which • Company’s management modelsproduce internal and external value. • Core competencies- Business Architecture strategy • Responsible Strategic AnchoringBusiness Model Level 2 • Department Strategic Business Objectives (SBOs)Business Model with business • Critical Sucess Factors (CSFs)competency groups • Core competencies (Differentiated and Competitive)- Business Architecture alignment • Cost & Revenue Tactical AnchoringBusiness Model Level 3 • Critical Sucess Factors (CSFs)The company’s Business Model • Key Performance Indicators (KPIs)competencies desribed in more detail • Core competencies (Differentiated and Competitive) • Value opportunities- Business Architecture roll out • Identify and define service enablement needs •Define Performance and Monitoring needsProcess Level 1 Main Groups of Processes • Identify main processMain (management or support) • Document main process flowprocesses with focus on whole • Document main process relationscompany. – EA strategy • Document main process input and output (match to KPIs)Process Level 2 Core Processes • Identify different end-to-end business processesCore processes with focus for • identify Process ownership (eventually)example on department level. • Document core process input and output– EA ownership (define PPIs) Business ProcessProcess Level 3 • Document process cycles “end-to-end” withBusiness processes will be described input and output simulations (define PPIs)as a set of level 3 processes (sub • Apply the 10 process parametersprocess) and are the starting point of • Apply Netweaver BPMN process meta modelSAP process cycles (EA roll out) parametersProcess Level 4 Sub-Process • Document process activities with static and dynamicSub process needed to map To-Be simulation and optimization (define PPIs)processes to SAP Solutions • Apply SAP Composite application process(EA roll out) characteristics (including service definition) • Define monitoring and measurementsProcess Level 5 Sub-activity Process • Document sub activities with static and dynamic• Process steps needed to map To-Be simulation and optimization (define PPIs)processes to SAP Solutions • Apply SAP Composite application process characteristics (including service definition ) • Define monitoring and measurements Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  99. 99. [ Defense - Value Drivers Business opportunities Line Value Management Business Governance Management Balan- Business Core Business Process cing Management Technology Technology Automation delivery ManagementReal Experience. Real Advantage.
  100. 100. [ Value Drivers Real Experience. Real Advantage.© SAP 2009 /
  101. 101. [ Value Drivers Real Experience. Real Advantage.© SAP 2009 /
  102. 102. [ Performance and Value Management Real Experience. Real Advantage.© SAP 2009 / Developed
  103. 103. [ Level 1 – Business ModelReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel © SAP 2009 /
  104. 104. [ Level 1 – Business Model with Strategic view Real Experience. Real Advantage.© SAP 2009 /
  105. 105. [ Level 3 - Defense Business Model Internal Operations external Operations Defense Financial Maintenance & Internal Production Distribution External Production Administration Management Repair Operations Analyzing defense Material and infrastruc- Operational Personnel strategy Mission capacity +10/20/30 years ture planning Strategy & Planning & Planning Analysis & Planning Corporate Planning Financial Force & material Management and Portfolio Strategy Portfolio Strategy Task Planning Planning Alliance Mgt. Planning & Planning Distribution Process Business Process Line of Defense Business Process Distribution Planning Planning Management Planning Management Government Contract Program Management Weapons Opportunity Relations Management Management Strategic Sourcing Management Business Performance Program Security Tax MRO Supplier Deployment Management Management Management Management Management External Market Systems Engineering & Assessment Risk Requirements Task Technical Data & Supplier Relationship Management Management Management Organization & Information Management Process Design Program Corporate Finance Configuration Logistics Demand Planning Warehousing Communications And Tacticals Management Scheduling & Analysis Operations Research & Advanced Parts Strategic Advanced portfolio Knowledge Management Portfolio Finance Development Inventory Mgt Procurement execution And operations Legal and Weapon & Air worthiness Regulatory Logistics Program, (weapon Certification) Field Services execution InStrategic Agency Audit (DCAA) Procurement Materials Research Force Operations e-diagnostics Project execution Real Estate, Program & Prognostics Inventory Tactical Facilities & Equip Treasury Analysis & Validation & Traceability (RFID) Process Technical Support Process Design, execution HR Administration Force production Analysis & Validation Repair & Overhaul Sub Assembly Accounting Information and GL Tool Design Force production Force deployment Technology Mgt. & Build Final Assembly & Test Copyright: Prof. Dr. Mark von Rosing = Core Competitive = Core Differentiated = Value opportunityReal Experience. Real Advantage.
  106. 106. [ Level 1 - Processes Real Experience. Real Advantage.© SAP 2009 /
  107. 107. [ Level 1 - ProcessesReal Experience. Real Advantage.
  108. 108. [ Level 2 - Processes Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Real Experience. Real Advantage.© SAP 2009 /
  109. 109. [ Lessons LearnedReal Experience. Real Advantage.
  110. 110. [ Link between Business Model and the overall Enterprise Architecture Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  111. 111. [ Link between Business Model and the overall Enterprise Architecture Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  112. 112. [ Link between Business Model and the overall Enterprise Architecture Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  113. 113. [ Link between Business Model and the overall Enterprise Architecture Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  114. 114. [ Link between Business Model and the overall Enterprise Architecture Performance Management and Business Governance Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  115. 115. [ The new ASAP Methodology support the 4 lifecycle ASAP Methodology including BPM Technology – BPM, SOA and Value perspective To Be Des ign Process Owner CIO Project Manager Business Unit Owner Process Management Performance Management Value Management Process/Perfor Gov. IT Gov. Project/Prog Gov. Business Governance Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel
  116. 116. [ Key Learnings 1. Learned how to apply a business value management road map from SAP 2. Discovered how a company can create, realize, and measure business value 3. Explored a value-based management approach that can create the needed value companies are looking for today 4. Had fun…… Questions: Mark von Rosing (mark@vonrosing.dk) Henrik von Scheel (h_scheel@yahoo.com) Real Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel 116
  117. 117. [  Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education on this area of focus, visit the Year- Round Community page at www.asug.com/yrc ] [ SESSION CODE: INSERT SESSION CODEReal Experience. Real Advantage. Author Prof Mark von Rosing and Henrik von Scheel 117

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