2. Accelerating SAP Value with IBM BPM
Logan Vadivelu
BPM Technical Leader and SAP SME

3. 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

4. 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

5. 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!

6. 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?

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. 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

17. 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

18. 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

19. 19
Generate Guided Workflow for Imported Process
Configure SAP server and run default guided workflow

20. 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.

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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*

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IBM Confidential 32
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Questions
+ = Enables Innovative Business Model