SAP business process analysis as a service to boost bottom line profit

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With SAP Business Process Analysis as a Service, companies get immediate bottom line results. SAP has developed unique services to analyse your end to end business processes on your runtime SAP ERP System. Resulting in immediate financial benefits for the CFO. With SAP BPA as a service your CFO will be proud of his SAP Operational IT Team, as they started to measure what happens in your inbound and your Outbound Business. This service is available at no extra cost for SAP Enterprise Support Customer.

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SAP business process analysis as a service to boost bottom line profit

  1. 1. This article appeared in the Oct Nov Dec 2012 issue of SAPinsider (http://sapinsider.wispubs.com) and appears here with permission from the publisher, WIS Publishing. n n COLUMN Maximizing the Value of Maintenance Tune Your Business Processes and Boost Your Bottom Line How SAP Enterprise Support Helps You Maximize Process Improvements with Minimum Effort by Dr. Samuel Jesgarz and Marcel Jung, SAP The health of your business processes plays a act as the adjusting screws, influencing the flow critical role in whether or not your company of the process through the process framework. remains competitive. Stuck processes or back- While influencing process flows is necessary to logs can translate directly into lost revenue, respond quickly to changing business require- while delays or inaccuracies in financial report- ments and stay on the leading edge of innovation, ing can have adverse effects on auditing and the over time this can lead to increasingly complex ability to detect fraud. So, how can you ensure processes that are at risk for inefficiencies, dead that your processes support your organization ends, and disruptions. by executing efficiently, accurately, and depend- To minimize risks and ensure healthy pro- ably — preferably without enduring a painstak- cesses, the BPI methodology helps business ing, resource-consuming evaluation of every last process operations teams optimize their organi- process detail? zations’ processes. This methodology is based on You could, of course, start from scratch, but the concept of “neuralgic points,” which are pro- nobody wants to reinvent the wheel, and with cess steps that exist regardless of the details of a the business process improvement (BPI) meth- particular process scenario. For example, while odology from SAP Enterprise Support, you don’t the details of the order-to-cash process may have to. By identifying problem areas in the pro- vary among different organizations, every order- cesses you already have, SAP Enterprise Support to-cash process involves creating a sales order helps you gain: and an invoice. Thus, the business process steps ■■ Quick, easy wins, including global transpar- “create sales order” and “create invoice” are Dr. Samuel Jesgarz (samuel. jesgarz@sap.com) joined SAP in 2004 and now serves as an Engineering Architect in the SAP Active Global Support organization. He is the owner of the Business Process Improvement Campaign. neuralgic points. ency across your processes Through its business process analysis service, ■■ Time and cost savings the SAP Enterprise Support team identifies the ■■ Increased customer satisfaction relevant neuralgic points and suitable key per- ■■ Faster revenue streams formance indicators (KPIs) for your individual customer scenario. It also provides the tools ■■ Better planning and experience necessary to embed these KPIs ■■ More accurate business reporting into your processes, measure them, analyze the results, and identify areas for improvement. A Simple Methodology for Business Process Improvement Using neuralgic points for these measurements Imagine a system of water pipes equipped with ogy to your processes remotely and seamlessly, screws at the various pipe intersections to adjust without having to know every detail of the pro- the flow of the water running through the sys- cess. This means you get results in a very short tem. In a business process scenario, end users time and with very little effort on your part. enables the team at SAP to apply the methodol- Subscribe today. Visit sapinsider.wispubs.com. Marcel Jung (marcel.jung@ sap.com) joined SAP in 1998. As Head of SAP Enterprise Support Operations EMEA within the SAP Active Global Support organization, he is responsible for securing the service delivery, supporting the embedded support office, and establishing a back office.
  2. 2. The Measurements That Drive Business Process Improvement to have the team at SAP analyze, evaluate, and To identify areas for improvement in your indi- the findings in a management summary. vidual business processes, the BPI methodology focuses on measuring areas where your processes become stuck or do not run optimally, including: rate the output of these key figures and present Let’s take a look at how measurements can be applied to process steps using an example process scenario. Then we’ll examine how the measure- ■■ Throughput, which measures the number of ments are analyzed, and how the analysis can be objects created per unit of time (for instance, presented in the optional management summary. the created sales order items per day). ■■ Backlogs, which are generally related to overdue business documents. In the order-to-cash Measurement Points in the Order-to-Cash Process process, for example, this could be a sales Using measurements at the neuralgic points order in which the requested delivery date has in the order-to-cash process, experts from SAP passed without delivery of the requested mate- Enterprise Support can analyze each key step in rials or services. the process for inefficiencies. These steps are: ■■ Dead ends, which occur when process steps 1. reate sales order. Once a customer places C are not executed as designed. For example, if an order, the end user creates a sales order in the end user does not set the final delivery flag the SAP system. For this step, measurements for a completed sales order, the order remains can be used to analyze sales orders with over- open in the system indefinitely, leaving the due deliveries. The BPI methodology focuses on measuring order-to-cash process at a standstill. ■■ Loops, which take place when steps are processed repeatedly. For example, when a credit areas where your memo is created, if the invoice is corrected or processes become reprocessed, it can cause such a loop. stuck or do not run optimally. Applying the BPI Methodology with the Business Process Analysis Service The business process analysis service offered by SAP Enterprise Support is an assessment service that enables experts from SAP Enterprise Support to apply the BPI methodology to your processes to identify areas for improvement. Here’s how it works: 1. xperts from SAP Enterprise Support log on E remotely to your back-end SAP ERP system and scan the system to determine which business documents are in use. 2. ased on this information, the team at SAP can B 2. reate outbound delivery. Here, measureC ments can be used to determine if any deliveries are overdue. 3. ost goods issue. At this point, measurements P can be used to see if a goods issue has been posted for deliveries — that is, if goods have been shipped to customers, but corresponding invoices have not been created for some reason. 4. reate/print billing document. Here, meaC surements can be used to check for invoices that have not been posted to accounting, which means that the corresponding accounting document was not created on time. 5. reate accounting document. Measurements C can be used at this step to look for overdue open items in accounting, which can occur when a bill is unpaid or when the corresponding payment could not be assigned to the open item from the invoice. determine which high-level business process scenarios are used in your SAP ERP system. 3. or each scenario, a subset of predefined BPI F KPIs is executed at the neuralgic points to analyze each process scenario specifically.1 4. s an additional service, customers can choose A A complete catalog of out-of-the-box key figures is available at http://service.sap.com/bpm. 1 Assessing a Process with the Business Process Analysis Service Figure 1 shows the results for the “create sales order” measurement point in the order-to-cash process, which analyzed the number of overdue sales orders. Results are displayed according to organizational unit. When analyzing sales orders, for example, the results are displayed Subscribe today. Visit sapinsider.wispubs.com.
  3. 3. Number of orders with delayed delivery FIGURE 1  The “create sales order” analysis results for the example order-to-cash process 50 45 40 35 30 25 20 15 10 5 0 Business process improvement Company best practices AT10 DE10 DE20 DE30 IT10 Internal benchmarks Business process improvement methodology provides internal benchmarks that are realistic, reliable, and comparable HU10 NL10 Business process analysis Quick assessment service to identify improvement areas Company standard Improvement area according to the different sales organizations in ■■ Supply chain your company. ■■ Period-end closing To identify improvement areas and company best-practice areas, the BPI methodology uses ■■ Interface management internal benchmarking, which compares dif- Each value category is assigned points based ferent units within the same company that are on the KPI ratings. Finally, if the customer has operating the same process, ensuring realistic, opted to add a management summary onto their reliable, and cost-effective benchmarks. External BPI engagement, the SAP team generates a sum- benchmarking, in contrast, uses processes from mary highlighting the findings and identifying other customers for the comparison, which can the areas with low, medium, and high potential be unreliable due to process differences and can for improvement (see Figure 2 on the next page). require a significant investment to achieve mean The results for the “create sales order” exam- Taking Control with the Business Process Improvement Campaign ple, for instance, shows that: The BPI methodology helps you save time and ■■ There is a best-practice organizational unit money by enabling you to improve what you ingful results. (the DE20 sales organization) that has only a small backlog of orders with delayed delivery compared to other units. ■■ A sales organization (HU10) has a significantly higher backlog than the company average — a potential candidate for improvement. already have. By applying this methodology to your processes, SAP Enterprise Support helps you gain insight into the areas with the most improvement potential, without needing to know the particular details of your processes and using your own organizational units for benchmarking comparisons. This means fast, reliable results that Using the results from the initial analysis, the you can put to use right away for tangible cost team at SAP then rates the measured KPIs, using and time savings. their experience gleaned from hundreds of service deliveries worldwide. Each KPI is rated individually, with a “red” rating (which indicates that a KPI significantly exceeds the average value), a “yellow” The BPI methodology uses internal benchmarking, which rating, or a “green” rating. Then, the expert rates compares different units within the same company that are 5-7 KPIs for each of the following categories: operating the same process, ensuring realistic, reliable, and ■■ Customer satisfaction cost-effective benchmarks. ■■ Revenue stream Subscribe today. Visit sapinsider.wispubs.com.
  4. 4. Medium Potential Low Potential summary generated from the business process analysis service High Potential FIGURE 2 u Example management Customer satisfaction Revenue stream Supply chain planning Period-end closing Interface management BPI Campaign from SAP Enterprise Support The BPI Campaign from SAP Enterprise Support not only helps you identify problem areas in your core business processes, but also guides you toward realizing the needed improvements, opening the door to even more effective time and cost savings. All activities, tools, and services related to the BPI Campaign are part of your SAP Enterprise Support engagement, and include: ■■ A set of analysis tools, including over 750 out-of-the-box key figures for enabling fast technical business process analysis ■■ A “meet-the-expert” kick-off session, where your business process operations team meets with experts from SAP ■■ The business process analysis service for assessing your core business processes and identifying improvement areas, including an executive summary meeting with experts from SAP Enterprise Support ■■ Recommendations, best practices, and the definition of next steps for improvement, including a roadmap ■■ Guidance on how to realize improvement steps (optional) ■■ Guidance on how to set up automated monitoring and alerting in SAP Solution Manager (optional) To help expand your process improvement you through the improvement steps or set up potential and enable you to take full advantage automated monitoring and alerting in your SAP of the potential benefits, SAP Enterprise Sup- Solution Manager implementation. port has also initiated the BPI Campaign, which To start realizing the benefits of the BPI Cam- is included in your SAP Enterprise Support paign in your own business processes, visit http:// engagement. By participating in the BPI Cam- service.sap.com/bpi. To learn more about the paign, in addition to the business process analy- BPI Campaign, sign up for the SAP Enterprise sis service, you gain direct, on-demand access to Support Academy’s live meet-the-expert session BPI experts at SAP, who can also optionally guide on this topic at http://bit.ly/RUgvKv. n Subscribe today. Visit sapinsider.wispubs.com.
  5. 5. www.sap.com © 2012 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc. Sybase is an SAP company. Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AG in Germany and other countries. Crossgate is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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