The Coca-Cola Company: BPM in the Context of Global ERP (Enterprise Resource Planning) Implementations


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Innovation World 2013 presentation

Get introduced to BPM in the context of ERP, implemented globally at Coca-Cola Bottling companies using SAP® and other solutions. Business process standardization and the implementation of best-practice processes are the company's key guiding principles. Topics covered in this presentation include an overview of the Coca-Cola System and the Bottler Services Group, the BPM life cycle for Coke One (process strategy, process design, process implementation and process controlling) and an assessment of where this initiative is headed next.

Petra Burgstaller
BPM & Enabling Lead, The Coca-Cola Company

Published in: Technology, Business

The Coca-Cola Company: BPM in the Context of Global ERP (Enterprise Resource Planning) Implementations

  1. 1. ©2013 Software AG. All rights reserved.©2013 Software AG. All rights reserved. Petra Burgstaller, BPM & Enabling Services Lead – The Coca-Cola Company October 10th, 2013 BPM in the context of global ERP Implementations Click to add Innovation World subtitle
  2. 2. ©2013 Software AG. All rights reserved. For internal use only2 | Content •  Introduction to The Coca-Cola System •  Bottler Services Group & Coke One Introduction •  Business Process Management in Coke One •  Summary and Outlook
  3. 3. ©2013 Software AG. All rights reserved. For internal use only3 | Our Mission: At The Coca-Cola Company we strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference
  4. 4. We  Have  the  World’s  Strongest  System    200+   Brands  in   Countries   250  Bo<ling  Partners   23+  Outlets      Million   700+  Global  System  Employees   Thousand   Top  10  Private   Employer   Billion   Servings  Every  Day   1.8   Approximately  
  5. 5. Company-­‐Owned   &  More  to  Come! The  World’s  Greatest  Beverage  Brands  
  6. 6. ©2013 Software AG. All rights reserved. Bottler Service Group & Coke One Introduction
  7. 7. ©2013 Software AG. All rights reserved. For internal use only7 | What does it look like when we get there?
  8. 8. ©2013 Software AG. All rights reserved. For internal use only8 | To be the Coca-Cola bottlers’ trusted advisor on all process, data, and IT solution needs and a value-added service provider used to accelerate local deployment efforts leveraging global best-practice capabilities •  Focus and improve core Coke One capabilities •  Expand Coke One adoption footprint across all geographic regions •  Improve and optimize billable BSG services utilization •  Sustain ongoing KO audit compliance •  Rebuild BSG with the necessary mindset & skills for sustainable success •  Leverage partnerships across Global IT and other functions to optimize resource skill and reach •  Focus BSG efforts to deliver the right things, to the right bottler, at the right time, & with indisputable value •  Freeze/discontinue non-core capabilities/ support •  Upgrade & maintain core solution components •  Migrate infrastructure to a more cost-effective cloud-based model •  Target non-C1 bottlers of large to upper mid- range size for further expansion •  Build a clear value case for BSG service utilization STRATEGY ORGANIZATION EXECUTION Bottler Services Group Vision
  9. 9. ©2013 Software AG. All rights reserved. For internal use only9 | Amatil Australia New Zealand Indonesia FEMSATNTL Philippines Thailand Swire CCCIL Shen Mei CCW Japan China CONA USAArca-Contal Mexico Shanduka South Africa Andina Argentina Brazil Chile Hindustan India CCI Turkey CCEAG Germany CC Singapore Singapore Malaysia CCB Malaysia Coke One Deployment
  10. 10. ©2013 Software AG. All rights reserved. For internal use only10 | •  Plan & Integration •  Make & Maintain •  Warehouse & Delivery •  Procurement •  Market-to- Order •  Order-to-Cash •  FSV / CAM / MAM •  Customer Integration •  Mobile Solutions •  Controlling & BPS •  Finance & Shared Services •  Business Controls •  SAP Application Development •  3rd party application integration •  Test & Quality Management •  EA & Landscape Management •  Infrastructure Services •  BPM Governance •  Master Data Management •  End user Training / Coke One Academy •  Toolkit & Change Management Bottler Services Group – Organization structure Commercial Supply Chain Finance Template & Solution BPM & Enabling Services General Manager •  Business and master planning •  Process & Solution integration •  Release Management •  Delivery Management Planning, delivery and integration
  11. 11. ©2013 Software AG. All rights reserved. For internal use only11 | Vision 2020 – Our Roadmap For Winning Together
  12. 12. ©2013 Software AG. All rights reserved. For internal use only12 | Coke One provides a platform to enable 2020 Vision across our franchise system Productivity Profit Partners ü  Design and implement the most effective and efficient business system ü  Standardize and simplify our business processes, data and IT systems ü  Create a competitive cost advantage across the entire supply chain ü  Build a continuous improvement and cost management culture HowCokeOneEnables2020Vision ü  Operate the lowest-cost manufacturing and logistics in every market, while maintaining our quality standards ü  Use our size and expertise to create economies of scale ü  Think and act like an integrated global enterprise while intensifying our local focus ü  Win at the point of sale ü  Increase people’s system knowledge and cross-system movement ü  Ensure that our products are always the “gold standards” for quality ü  Create competitive advantage by fulfilling our Live Positively commitments People, Portfolio, Planet 2020 Vision Extracts
  13. 13. ©2013 Software AG. All rights reserved. BPM – Business Process Management in Coke One
  14. 14. ©2013 Software AG. All rights reserved. For internal use only14 | FINANCE SUPPLY CHAIN COMMERCIAL Focus Areas 1.  Organize / cleanse documentation 2.  Establish integrated BPM Process, Data, solution model 3.  Enhance/leverage bottler business scenarios 4.  Update Coke One methodology, roles and responsibilities 5.  Develop Education & Training Model ARIS Coke One Tools UPK Coke One Portal (SharePoint) SharePoint Master Data Management Documentation Methodology Improve quality, access, and usability of core capabilities required to enable and accelerate the build, deployment and sustainability of the Coke One solution. BPM in Bottler Services Group
  15. 15. ©2013 Software AG. All rights reserved. For internal use only15 | Process strategy BPM in our Coke One SDLC Design Planning & Continuous improvement Build & Test •  BPM governance: BPM strategy, roles, processes •  BPM Service offering •  Distribution procedures global rollout management •  Process Design Document (PDD) – a mandatory deliverable in Coke One SDLC •  Release cycle management •  Quality assurance procedures •  Business publishing •  Solution build based on process design •  Synchronization with SAP SolMan •  Test case creation based on process (report) •  Integration tests based on E2E process definition •  PMM: Process maturity model assessment •  Scope definition via UPM (Process list) Coke One Bottler I Bottler II Bottler III … Test Continuous improvement RequirementsAnalysis
  16. 16. ©2013 Software AG. All rights reserved. For internal use only16 | Process Structure & Levels Standards, Conventions, Handbook, Guidelines Tools Procedures Roles Responsibilities Committee BPM Approach & Standards BPM Governance Structure Standardized Processes, Data, & Solutions Determine BPMDetermine BPM service offeringsservice offerings & processes& processes SpecifySpecify architecturalarchitectural standards &standards & guidelinesguidelines DefineDefine implementationimplementation planplan Define BPMDefine BPM roles &roles & responsibilitiesresponsibilities DesignDesign < Evaluate BPMEvaluate BPM maturitymaturity Identify relevantIdentify relevant stakeholdersstakeholders DefineDefine project scopeproject scope and planand plan Stipulate BPMStipulate BPM requirementsrequirements Determine BPMDetermine BPM value propositionvalue proposition StrategyStrategy Define BPMDefine BPM use cases &use cases & approachesapproaches CommunicateCommunicate BPM value &BPM value & offeringsofferings DistributeDistribute BPM tools &BPM tools & knowknow--howhow ConductConduct projects In BPMprojects In BPM use casesuse cases ImplementImplement process governanceprocess governance modelmodel ImplementationImplementation MonitorMonitor BPM adaptationBPM adaptation successsuccess Monitor BPMMonitor BPM skill developmentskill development MonitorMonitor projectproject performanceperformance ControllingControlling MonitorMonitor BPMBPM compliancecompliance Identify andIdentify and managemanage improvementsimprovements BPM Governance in Coke One
  17. 17. ©2013 Software AG. All rights reserved. For internal use only17 | Process of Process Changes Identify if rationalized requirements / demands have impact on process design: •  Change to existing processes •  New processes required BPM LeadPSL (or assigned team member) PSLsModeler Supported by ARIS Release Cycle Management Bottler Review PDD  -­‐  Process Design  Doc completion Process  design in  ARIS Standards  & Method  Check Content  review &  approval Publication  of new  Coke  One Model  Release
  18. 18. ©2013 Software AG. All rights reserved. For internal use only18 | The Coke One Model – We have built … ~1080 processes including 80 variants on 4 levels of detail 125 Risk objects with 57 automated + 449 manual controls and their relation to processes 51 KPI / 152 Process performance measures (PPMs) and their relation to Value drivers ~350 Business roles maintained and linked to process steps ~900 SAP transaction codes linked to process steps and 8 Coke One NON SAP application systems Embedded process and measure assessment tools (PMM)
  19. 19. ©2013 Software AG. All rights reserved. For internal use only19 | …an asset with Value Coke One Model Employee enablement, knowledge transfer Source of testing, training and user documentation Compliance: risk and control management Eases mergers, acquisitions and restructurings - process standardization Efficient preparation for implementation and release upgrades Enables the efficient use of shared services 1919
  20. 20. ©2013 Software AG. All rights reserved. For internal use only20 | A published process is better.... 20
  21. 21. ©2013 Software AG. All rights reserved. For internal use only21 | Synchronization SAP relevant E2E business scenarios and respective processes transferred to SAP Solution Manager 21 PDDs (Process Design Documents) PSLs document & update Coke One processes (L4) and define E2E business scenarios as sequences of these processes via PDDs BTCs (Business process Test Cases) Upload of at least one BTC per L4 process to be tested Coke One R3.0 (ARIS database) Scale_TMP (Type: Template project) Test Project R3.0 (Type: Implementation project) Automatic creation of test plans and test packages from BTCs assigned to L4 process and the sequence of E2E business scenarios Test plans & -packages Design Phase Test Phase Test Case Repository Process design work supports testing
  22. 22. ©2013 Software AG. All rights reserved. For internal use only22 | Localization of Coke One – Distribution Concept Coke One Bottler I Bottler II Bottler III 22 Bottler localizations are done in own Bottler copy of Coke One •  Simultaneous modifications –  Modify Bottler processes and solution according to local requirements –  Further develop Coke One process and data standards template •  Comparison & update –  Compare versions of Coke One template –  Compare Coke One template with Bottler database (upon request) –  Update Bottler database with new template processes (upon request)
  23. 23. ©2013 Software AG. All rights reserved. For internal use only23 | •  Standardized process driven documentation of the Coke One Template functionality •  For one area / capability within a stream or cross stream (typically a Level 2 or 3) •  Growing with each Release, updated after template is designed and built •  Generated based on structures and information in ARIS including screen shots from SAP or other supportive concept graphics •  Stored in ARIS as ready to read documents •  Possibility to self-generate on Business Publisher •  Solution Guide does NOT include … •  requirements or future ideas •  documentation about standard SAP functionality •  technical documentation or configuration •  training for end user 23 Solution Guide – a process driven product description
  24. 24. ©2013 Software AG. All rights reserved. For internal use only24 | BPM community – leverage the size of our system
  25. 25. ©2013 Software AG. All rights reserved. For internal use only25 | 25 BPM community – Where chatting is a good thing!
  26. 26. ©2013 Software AG. All rights reserved. Summary and outlook
  27. 27. ©2013 Software AG. All rights reserved. For internal use only27 | Summary – Where are we now on our BPM journey Bottler Service Group going through a transformation – BPM will support this transformation and continue to accelerate build, deployment and sustainability of high quality Coke One solution through best practice process, tools, and methodologies –  BPM continues to be one of the building blocks of Coke One methodology –  With the Coke One Model and the Process Maturity Assessment Model we have built an asset that is recognized within the Coca-Cola System –  Bottler Services Group is recognized as the BPM service delivery partner in regards to both method and process expertise –  We have professionalized our BPM training capabilities with the set up of the Coke One Academy –  We started to establish a BPM community within the Coca-Cola system, where we are seen as a thought leader
  28. 28. ©2013 Software AG. All rights reserved. For internal use only28 | ...and where do we need to get better •  We have built great assets in regards to BPM tools some of which however only starting to be (re)used now or are still hardly used Value analysis & restructure BPM service offering •  Practice what you preach! – Internal process documentation and internal process ownership SDLC review •  BPM is a great selling point in the initial engagement phase with the bottler, but when actual deployment activities start great BPM localization plans often seem to be thrown over board BPM service offering review; collaboration with deployment partners; define mandatory deployment deliverables
  29. 29. ©2013 Software AG. All rights reserved. For internal use only29 | Questions