It's all about efficiency and cost savings

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  • 1. « it’s all about efficiency and cost savings » BUSINESS PROCESS MANAGEMENT LIFE -CYCLE Stéphane Haelterman
  • 2. 27/04/2009 FROM BUSINESS WORKFLOW TO BUSINESS PROCESS MANAGEMENT BUSINESS PROCESS MANAGEMENT LIFE-CYCLE 10 years ago, technology was defining the boundaries of a business process Today, a business process provides the context for strategic technology Business Process Management Business Workflow We help you manage your business process (r)evolution 2
  • 3. 27/04/2009 THE BRIDGE BETWEEN INFORMATION TECHNOLOGY AND BUSINESS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE A business process is a collection of interrelated tasks, which accomplish a particular goal. Processes are critical to any organization as they generate revenue and often represent a significant proportion of costs. Business Process Management (BPM) is a method of efficiently aligning an organization with the wants and needs of clients. It is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology. BPM is currently bringing a revolution in the business by providing enterprise infrastructure that manages and automates processes that have both human and system related tasks. 3
  • 4. 27/04/2009 THE BRIDGE BETWEEN INFORMATION TECHNOLOGY AND BUSINESS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE BPM as to be seen from two viewpoints: People BPM alignment to the customer means that customer-facing staff are best suited to understand customer needs and must be empowered to make improvements. Many of these improvements can be done without the use of new technology. Technology Some see that information moves between enterprise software packages and immediately think of Service Oriented Architecture (SOA); while others believe that modeling is the only way to create the ‘perfect’. Both of these concepts go into the definition of BPM. For instance, the size and complexity of daily tasks often requires the use of technology to model efficiently. BPM is the convergenceofWorkflow,EAIand structuredorad-hoc processes. 4
  • 5. 27/04/2009 BPM LIFE-CYCLE STEPS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Design Representation of the process flow, the actors within, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms. Modeling Optimization Design Modeling takes the theoretical design and introduces combinations of variables, for instance, changes in the cost of materials or increased rent, that determine how the process might operate under different circumstances. It also involves running quot;what-if analysisquot; on the processes. Execution One way to automate processes is to implement SAP Business Workflowthat executes the required steps of the process in combination with human intervention. Automating a process Monitoring Modeling definition requires flexible and comprehensive infrastructure. Change Monitoring Management Monitoring encompasses the tracking of individual processes so that information on their state can be easily seen with statistics to measure the performance, detect discrepancies and analyze bottlenecks. Execution Optimization Process optimization includes retrieving process performance information from modeling or monitoring phase and identifying the potential or actual bottlenecks and potential rooms for cost savings or other improvements and then applying those enhancements in the design of the process thus continuing the value cycle of Business Process Management. 5
  • 6. 27/04/2009 IDENTIFYING BPM LIFE-CYCLE NEEDS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE I have customer complaints ( Call Center Activities Follow-up / Helpdesk Automation ) Customers are not paying in time ( Customer Credit Management ) I lose supplier’s discounts ( Invoice Management ) I have too many handling charges ( Invoice Management, Purchase Efficiency… ) I lose market shares ( Sales Automation / Proactive Marketing Campaigns ) I’m too late bringing a new product on the market ( Material Request ) I have stolen goods ( Purchase Efficiency ) The meter setup and reading is not done in time ( Workforce Management ) I missed an important recruitment ( Manager Self Service ) My employee spends too much money ( Travel Expense Approval ) What does my employee and where ( Time Sheet Approval ) My procedure is not integrated with my systems Six Sigma Information is not accessible at the right time and person Total Quality Management Business Process Reengineering I cannot measure the efficiency of my processes Lean Systems I have less flexibility changing my procedures Reorganization I lose process knowledge due to employee turnover 6
  • 7. 27/04/2009 BPM LIFE-CYCLE IS A SUBJECT OF INTEREST IN THE FOLLOWING CASES BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Process oriented (re)organization Process Optimization Quality Management Staff requirements planning Integrated Management System Cost reduction Transparency in organization / data Organization and systems in harmony with corporate strategy Product cost accounting Balance Scorecard / KPI’s / PPI’s 7
  • 8. 27/04/2009 COMPLEXITY IN BPM LIFE-CYCLE PROJECTS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE People Different departmentsmay be involved in the design and modeling phases Each department has its own viewof the business process Individuals arenote used to think in term of processes Proceduresare often rigidandentrenchedin the organization The staff is often not willing to changein terms of roles & responsibilities There are often political issues The management is notalwayssponsoring and supporting the change Often part of a reorganizationproject seen as a job-killer( share service center, outsourcing ) Official responsibilities vs. work organization 8
  • 9. 27/04/2009 COMPLEXITY IN BPM LIFE-CYCLE PROJECTS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Technology Applications ( FI, CO, SD, MM, PP, …) Data interchange ( EDI, IDoc, ALE ) Business Reporting ( Business Warehouse, Business Intelligence, Business Objects ) Telephony ( CTI + SAPPhone ) Web interface ( BSP, WebDybpro, Enterprise Portal ) System and process integration ( PI / BPM for Netweaver, ccBPM ) Document Management Systems ( OpenText, IRIS, Filenet, Documentum ) Optical Character Recognition ( IRIS, TIS, Kofax, ReadSoft, ITSoft, Docutek, Captaris ) Groupware ( Microsoft, Lotus ) Visual Composer Adobe Interactive Forms Service Oriented Architecture 9
  • 10. 27/04/2009 BENEFITS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Monitoring Complete process history Used to optimize the business process Better control within compliance regulations ( SOX, IFRS, BASEL II ) Analysis of the process performance Statistics People Increase of productivity Improved usability ( push vs pull ) Various interfaces to existing functionalities Immediate access to archived documents and scanned images Better routing of tasks Work list via email, enterprise portal, web sites, and mobile devices Privacy and security Less training required 10
  • 11. 27/04/2009 ADVANTAGES BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Advantages for the user Easier and faster access to information Reduced administrative tasks Easy learning and understanding of processes Advantages for the management Better control of the information, the service levels and the process costs Flexibility to change processes, organizational structure and underlying technology Advantages for the enterprise Improvement of the productivity by the distribution of the information and workload A faster and better reaction upon errors 11
  • 12. 27/04/2009 RETURN ON INVESTMENT AFTER 6 MONTHS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Reduced worktime ( 50% to 90% ) Less people needed Less time spent Reduced Increased worktime productivity Increased productivity ( 10% to 75% ) Less errors Less penalties Reduction of Reduction of handling charges ( 20% to 40% ) Reduction of handling Less office furnitures office space charges Less communication fees Reduction of office space ( 20% to 40% ) Less rooms Less archives 12
  • 13. 27/04/2009 BUSINESS WORKFLOW IS EVERYWHERE BUSINESS PROCESS MANAGEMENT LIFE-CYCLE SAP SAP SAP SAP SAP SAP R/3 ECC CRM SRM SCM PLM SAP SAP SAP SAP SAP SAP EH&S APO GRC IS HCM SEM 13
  • 14. 27/04/2009 ACCORDING TO THE GARTNER GROUP BUSINESS PROCESS MANAGEMENT LIFE-CYCLE «Business Process Management wins the “triple crown” of saving money, saving time and adding value » «BPM is delivering both short-term return on investment (ROI) and long-term value. » «We expect process optimization to become a habit in many enterprises, driven by compliance acts and quality initiatives » «We anticipate that many enterprises will use streamlined processes as a competitive weapon in the marketplace » 14
  • 15. 27/04/2009 VALUE PROPOSITION BUSINESS PROCESS MANAGEMENT LIFE-CYCLE EBAIA helps you automate your processes in SAP by mapping them in the enterprise organization, by integrating them with your IT infrastructure, by providing you with the adequate monitoring and support you in managing your change. EBAIA has a strong experience in process automation in different industries. EBAIA propose you the best solution combining in-depth experience, powerful technology and business capabilities ( in line with the evolution of SAP products ) to improve your business processes. 15
  • 16. 27/04/2009 CUSTOMER BENEFITS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Delivery of full Business Process Management solutions Business and consulting oriented Strong track record Measured return on investment Efficiency and cost saving oriented Service and innovation Strong partnership with SAP and third-parties Aligned with the SAP Solution Map 16
  • 17. 27/04/2009 GENERAL SERVICES BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Audit for process automation Analysis of your (automated) business processes to determine bottlenecks (long throughput times, redundancy, unnecessary steps, broken links), wrong roles and responsibilities, obsolete or inefficient functionalities, and improper technology use. Prove Of Concept We reduce the scope of your Business Process Management Life-Cycle project We create a working prototype on 10 days We use it as communication medium We use it as a basis for the final solution Process Automation We help you with the design, modeling, execution, monitoring and optimization of your business process We assist you with the blueprint, realization and go-live We provide you with project management We support you managing the change We advise you on business reporting 17
  • 18. 27/04/2009 GENERAL SERVICES BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Return On Investment assessment Together, we can calculate the actual cost of the business process you would like to automate by analysing the worktime, the productivity, the handling charges, the office space, reorganization aspects and other factors. We deliver a report with detailed cost savings you can do by automating or optimizing your selected business process Solution Expertise We propose you complete tailor-made solutions to integrate your automated process with your various systems and applications SAP Business Workflow expertise, maintenance and trainings 18
  • 19. 27/04/2009 FEATURED SOLUTIONS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE We can help you automate and help you reduce the cost of the following processes Invoice Management Driven Case Management Purchase Efficiency Incoming Emails Follow-up Complaints Handling Proactive Marketing Campaigns Call Centers Activities Follow-up Helpdesk Automation Material Request Customer Quotation Customer Credit Management Sales Automation Travel Expense Approval STMS Request Approval Timesheet Approval Service Notification Processing Workforce Management … and many more 19
  • 20. 27/04/2009 FEATURED SOLUTIONS EXAMPLES & TECHNOLOGY USED BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Invoice Management Validation and approval of vendor invoices, Supplier Performance Monitoring SAP FICO, SAP VIM, SAP Business Workflow, OCR (IRIS, Dokutec, Readsoft, Kofax, ITSoft, TIS), Archiving (OpenText, IRIS, IBM), SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro, EDI, IDocs, Adobe Interactive Forms Purchase Efficiency Validation and approval purchase requisitions and purchase orders SAP MM, SAP Business Workflow, Archiving (OpenText, IRIS, IBM), SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro, Adobe Interactive Forms Complaints Handling Active Plant complaint follow-up with ISO requirements SAP QM, SAP Business Workflow, Archiving (OpenText, IRIS, IBM), SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro Call Centers Activities Follow-up Active customer enquiry follow-up within service level agreements SAP CIC, SAP Business Workflow, SAP Business Intelligence, SAP Business Objects, SAP 20 Enterprise Portal Universal Worklist, Webdynpro
  • 21. 27/04/2009 FEATURED SOLUTIONS EXAMPLES & TECHNOLOGY USED BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Material Request Collaborative collection of departments material data for costing, forecasting and production SAP MM, SAP FICO, SAP APO, SAP Business Workflow, SAP Case Management, SAP Business Rules Framework, SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro, Adobe Interactive Forms, Sinfos Customer Credit Management Customer credit approval with multi-level account blocking SAP FICO, SAP Business Workflow, SAP Case Management, SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro Workforce Management Planning of meter setup/reading by technicians with invoicing SAP IS-U, SAP FICO, SAP Business Workflow Helpdesk Automation Active follow-up of IT internal issues and change requests SAP CRM Service Tickets & Web-IC, SAP Business Workflow 21
  • 22. 27/04/2009 ACCOUNT PROFILES AND CONTACTS BUSINESS PROCESS MANAGEMENT LIFE-CYCLE All SAP Accounts Six Sigma / Total Quality Management / BPR / Lean Systems / Reorganization SOX / IFRS or Compliance Contact targets CFO or/and Financial controller COO or/and CPO CIM or/and CIO or/and SAP Manager Purchasing Manager Sales Director / Sales Manager Customer Operations Manager Marketing Manager HR Manager Plant Manager 22
  • 23. 27/04/2009 BPM KEY MESSAGES BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Executives Consider BPM as a cost saver Optimization improves efficiency and cost savings Line of business managers Monitor process efficiency for improvement Use cockpits, dashboards to challenge Business Analysts and to report to Executives Business Analysts Identify business process bottlenecks Become Business Process Manager for all business units 23
  • 24. 27/04/2009 KEY TAKE AWAY BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Think Business, Apply Technology Focus on Value Added Processes BPM Life-Cycle is Not an Extension of SAP Business Workflow SAP Business Workflow is one important Backbone for your BPM Life-Cycle BPM Life-Cycle = Cost Savings & Efficiency SAP Business Workflow is Everywhere 24
  • 25. 27/04/2009 CONTACT BUSINESS PROCESS MANAGEMENT LIFE-CYCLE Stéphane Haelterman shae@ebaia.com +32474900124 Feel free to connect with me on LinkedIn http://www.linkedin.com/in/shaelter You are welcome to join my SAP Business Workflow group on LinkedIn http://www.linkedin.com/groups?gid=1881723 25