SAP Enterprise Modeling Applications (ARIS)

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  • 1. SAP Enterprise Modeling Applications (ARIS):The first step in your BPM strategy for SAP•Sarah White, SAP Quality and Risk Management•Solution Engineer
  • 2. Today’s Dynamic Business EnvironmentsDemand 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.
  • 3. CIO’s Prio 1: Business Process ImprovementAccording 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.
  • 4. Obstacles to Change Existing Business ApplicationsAgile 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.
  • 5. 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 SAPs 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.
  • 6. Why Customers Care? Its 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 2009Companies in a broad range of industriesare 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.
  • 7. The Value of BPM: The Link Between a Focus on ProcessExcellence & Higher Market Valuations Get There Faster.
  • 8. SAP Enterprise Business Process Management Life CycleAnalyze: Design:SAP Business Process SAP Enterprise Modeling by IDSOptimization by IDS Scheer ScheerIdentify process weak points and Analyze and optimize existing processesbottlenecks Design processes on a conceptual levelDetermine utilization of resources Achieve process governance and assignAnalyze KPIs to enable sound process ownershipjustification of suggested processimprovementsMonitor: Implement:SAP Process PerformanceManagement by IDS Scheer SAP Enterprise Modeling by IDSMeasure performance of existing Scheer with integration toprocesses Solution ManagerVisualize, document and analyze the Accelerate Implementation via pre-actual performed processes prepared content Increase visibility via full integration of all Business Process and EnterpriseRun: Architecture components andSAP NetWeaver BPM advanced reportingSAP Enterprise ModelingIntegration with SAP ESR Get There Faster.
  • 9. SAP Enterprise Business Process ManagementLife Cycle - Design Design: SAP Enterprise Modeling by IDS 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
  • 10. 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 ITarchitectures. Get There Faster.
  • 11. 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.
  • 12. 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.
  • 13. Modeling and Analysis: Roles and Tools Involve the Business Users SAP Enterprise Modeling by IDS Scheer SAP Enterprise Modeling by IDS Scheer Process Manager IT Architecture Manager Business Architects IT Development Planner Write WriteSAP Business Designer by IDSSAP 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.
  • 14. 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 Enterprise Modeling by IDS Scheer SAP Enterprise Modeling 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.
  • 15. SAP Enterprise Business Process ManagementLife Cycle - Implementation Implement: SAP Enterprise Modeling by IDS 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. 29 June 2010 | ProcessWorld 2010 | 15
  • 16. Implementation… Key Building BlocksUtilizing 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.
  • 17. SAP Solution Manager and SAP Enterprise ModelingSynchronization: Structure SAP Solution Manager SAP Enterprise Modeling Synchronize Project Scenario Process Process Step/Transaction Get There Faster.
  • 18. SAP Solution Manager and SAP Enterprise ModelingSynchronization: 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.
  • 19. SAP Solution Manager and SAP Enterprise ModelingSynchronization: Model Build Out Example Original Built Out Example Event Driven Process Chain (EPC) Get There Faster.
  • 20. Documentation and Training embedded inBusiness Process Architecture Documentation Call Transaction Call Get There Faster.
  • 21. SAP Solution Manager and SAP Enterprise ModelingSynchronization: Updating SAP Synchronized Objects Original Updates Solution Manager Blueprint Structure and Configuration EPC with SAP object added in SAP EM Get There Faster.
  • 22. Process Oriented Configuration from SAP Enterprise Modelingto Solution Manager Solution Manager ERP - IMG Get There Faster.
  • 23. 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.
  • 24. SAP Enterprise Business Process ManagementLife Cycle - Run Run: SAP NetWeaver BPM SAP Enterprise Modeling Integration with SAP ESR Get There Faster. 29 June 2010 | ProcessWorld 2010 | 24
  • 25. Enterprise Multilevel End to End Concept: Top-Down Approachin 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.
  • 26. Automating non-standard processes can be challengingBecause 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.
  • 27. Business Process Management covers both automated and manual perspectiveBusiness 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.
  • 28. 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 SAP Enterprise Modeling Business Process applications Management SOA Design Governance Process Process Process Composer Desk Desk Process Server Get There Faster.
  • 29. Enterprise Modeling From Conceptual Planning to Technical BlueprintsConceptually describe the business Developing processes forSupport 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.
  • 30. Enabling SOA Service DiscoveryEngineering & ArchitectureSAP 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 Architecturebased on ARIS ES Repository Integrationbased on ARIS ES Repository Integration Get There Faster.
  • 31. Benefits of SAP Enterprise Modeling – EnterpriseServices Repository IntegrationSAP Enterprise Modeling by IDS Scheer with Enterprise Services Repositoryintegration 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.
  • 32. Business Process Modeling Notation 2.0Improve 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.
  • 33. 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.
  • 34. Sweet Spots for BPMBased on Beta Program and Design Partner Council customers Business Composite ExtendedUse Case Process Applications Processes Improvement Build a new module Extend ERP Implement BPM as or process not approval process part of businessDescription 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 LifecyclePrimary Platform Applications Consulting Driver BetaReference Detailed caseGet Therein wiki studies Faster.
  • 35. SAP Enterprise Business Process ManagementLife 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. 29 June 2010 | ProcessWorld 2010 | 35
  • 36. Continuous Improvement ofBusiness 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.
  • 37. SAP Enterprise Business Process ManagementLife 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. 29 June 2010 | ProcessWorld 2010 | 37
  • 38. SAP Business Process Optimizationby IDS Scheer Enhance SAP Enterprise Modeling for conceptual business process simulationand optimization Dynamically analyze business processes Use simulated KPIs to evaluate a range of alternatives Determine optimal procedures Get There Faster.
  • 39. SAP Enterprise Business Process Management Life CycleAnalyze: Design:SAP Business Process SAP Enterprise Modeling by IDSOptimization by IDS Scheer ScheerIdentify process weak points and Analyze and optimize existing processesbottlenecks Design processes on a conceptual levelDetermine utilization of resources Achieve process governance and assignAnalyze KPIs to enable sound process ownershipjustification of suggested processimprovementsMonitor: Implement:SAP Process PerformanceManagement by IDS Scheer SAP Enterprise Modeling by IDSMeasure performance of existing Scheer with integration toprocesses Solution ManagerVisualize, document and analyze the Accelerate Implementation via pre-actual performed processes prepared content Increase visibility via full integration of all Business Process and EnterpriseRun: Architecture components andSAP NetWeaver BPM advanced reportingSAP Enterprise ModelingIntegration with SAP ESR Get There Faster.
  • 40. 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.
  • 41. Thank you!Sarah White, Solution EngineerSAP Quality and Risk Management