The document discusses how digital transformation is impacting organizations, particularly in SAP environments, highlighting the shift towards hybrid cloud solutions. It emphasizes the need for integration, cognitive services, and automation to enhance agility, collaboration, and responsiveness in business processes. Additionally, it outlines barriers to transformation and proposes best practices to overcome them while leveraging cloud technologies for improved enterprise performance.

1. © 2016 IBM Corporation
Accelerating Digital Transformation in SAP
Environment using Cloud and Cognitive
Tien Nguyen, IBM Distinguished Engineer, IBM Cloud, tienng@us.ibm.com
Logan Vadivelu, Executive IT Architect, IBM Cloud, logan.vadivelu1@ibm.com
Nov 28, 2017

2. © 2016 IBM Corporation2
Agenda
§ The Need for and Drivers of Digital Transformation
§ Enterprise Clients Shift toward Hybrid Cloud / Hybrid IT in SAP environment
§ How Cloud can help accelerate Digital Transformation
- Hybrid Integration Scenario
- Intelligent Process Automation Scenario
- App Performance Management Scenario
§ Infusing Cognitive into Process Automation - an example scenario
§ Hybrid Integration Pattern, Architecture diagram for SAP integration
§ Q/A

3. © 2016 IBM Corporation3
Disruptors are reinventing business operating models and leading
their industries with digital transformation
32%
Focus on disruptive
innovation
more
58%
44%
Market Follower CEOs
Torchbearer CEOs
41%
more
83%
59%
Market Follower CEOs
Torchbearer CEOs
Revenue Model
Adoption
70%
Be First-to-market
more
80%
47%
Market Follower CEOs
Torchbearer CEOs
Source: IBM Institute for Business Value Survey of 818
CEOs from more than 70 countries

4. © 2016 IBM Corporation4
Organizations are moving from the Traditional to the Everyone-to-
Everyone economy
Digital Transformation: “The pervasive use of digital technology in products, services
and value networks, fundamentally transforming traditional business outcomes”
Differentiation based
on product/service
Individualized market
segmentation based
on outside-in listening
Emphasis on design
and marketing
Differentiation based
on ecosystem value
Dynamic customer
understanding based on
constant collaboration
Emphasis on rapid
recomposition

5. © 2016 IBM Corporation5
Growing Need for Digital Transformation
§ Digital Transformation is driven not just by technology, but also by the evolution of customer behavior.
Front-line decision making
Digital Apps moved decision-
making power to the point and
moment of interaction
Cloud
Empowers businesses to introduce
new application capability at a faster
pace and much lowered Total Cost of
Ownership (TCO) for business agility
Insight-driven processes
Non-traditional data creates new
business moments and opportunities
API Economy
Application Programming Interface is
no longer a developer’s interest; It is a
competitive business asset. A key
channel for brand engagement and
driving revenue
Factors driving digital transformation:

6. © 2016 IBM Corporation6
Benefits to Organizations from adopting digital transformation
Digital transformation allows organizations to build an
agile workplaces that are...
Dynamic - Adjust to rapidly
changing business conditions
Collaborative - Bring people and
information together to share
insights and solve problems
Connected - Access data and insights regardless
of time, distance and organizational silos
§ Easily identify and engage people and
skills to address current needs and
situations
§ Create & build interdisciplinary skills to be
able to address the dynamics of business
today
§ Facilitate discussions across the
organization to drive insight and promote
greater productivity
§ Engage people outside of your business
boundaries
§ Allow people to work productively regardless of location, time or device
of CEOs expect to attribute more than half of
their revenue to digital transformation within
the next 5 years

7. © 2016 IBM Corporation7
Barriers to Digital Transformation and How to Overcome Them
§ To achieve digital transformation, an organization needs to adopt a comprehensive approach that covers
its “People,” “Process” and “Technology” along with best practices to overcome the associated barriers.
Organization Barriers for digital transformation Best practices to overcome them
PEOPLE
Organizational inertia
Appoint digital torchbearers to ensure buy-in and
prioritization of digital initiatives
Expertise gaps
Embrace digital natives to channel insights and ideas
from digital innovators to the C-Suite
IT/LoB siloes
Foster collaboration like never before to align IT and LoB
priorities and execute as one team
PROCESS
Risk tolerance
Enable continuous innovation to support investment in digital
initiatives that meet risk/return goals
Slow data gathering Turbocharge insights to match the pace of digital business
Inflexible processes
Transform processes to be adaptable to new demands and
composable across ecosystems
TECHNOLOGY Inflexible IT
Leverage adaptable IT to that enables action across
ecosystems at the pace of digital business

8. © 2016 IBM Corporation8
Enterprises using SAP are moving toward Hybrid Cloud / IT
§ Clients recognize that they are moving towards ‘Hybrid IT’ / ‘Hybrid Cloud’ as they
adopt Cloud for ERP workloads for agility and flexibility
§ Clients understand the need for an architecture strategy to benefit from Cloud
economics and for driving digital business transformation
Cloud (IaaS)
CRM /
Mobile
EP Portal
NW AS
MES / LIMS
Backend
DB, DW, etc.
On Premises Workloads
Legacy
System
Edge IT /
Non-SAP
ECC / ERP
Cloud
(SaaS)
HANA
Business
Users
Business
Partners
Cloud (PaaS)
Analytics, AI/Cognitive,
Blockchain, Cloud-native,
etc.

9. © 2016 IBM Corporation9
Leverage Cloud, Cognitive and Hybrid IT capabilities to Accelerate
Digital Transformation in SAP environments
Achieve differentiated
business model:
Cloud services - Analytics, Cognitive,
IoT, Big data, Mobile, DevOps
Scalability, Speed and Time to Market
Connect apps and data
across Cloud and
On-prem systems
Deliver applications and
services
with speed
DevOps
Hybrid Integration
Model and automate
processes and decisions that
keep your business running
End-to-end monitoring of IT
systems landscape for
comprehensive visibility
System Monitoring
Process Transformation
Extend, Innovate & Optimize

10. © 2016 IBM Corporation10
Integration in the hybrid world is critical to enable Digital Transformation
§ The Hybrid Cloud model is a key enabler of digital transformation as it enables responsive IT for a
smooth transition of customer interactions between on-premises and off-premises, different
channels for better customer experiences, and business continuity.
Expose and monetize existing services
Extend existing workloads on Cloud
Operational automation
Analytics-based visibility on progress
Cloud First assembly of services
Agile DevOps model Continuous
delivery
User first delivery model

11. © 2016 IBM Corporation11
DX Enabler 1: Hybrid Integration Scenario
API Economy / Sys of Engagement Initiatives
Connect SAP with other
SaaS / aaS Applications
RPA (Robotic Process
Automation), API, Hybrid
Integration and BPM /
Decision Management
Provide APIs to value chain partners for
rapid, secure integration
Consumers
Business
Applications
Business
Applications
On-Prem
Non-
SAP
SaaS
Mobile
Partners/
Customers
Hybrid Integration, API Gateway
Integration
Automation
Exception
Management
On Cloud (PaaS / SaaS)
On Cloud (IaaS)
Employees
Drive agility, optimize IT spend with
Hybrid Cloud for digital transformation
Process / Decisions
IoT

12. © 2016 IBM Corporation12
DX Enabler 2: Intelligent Process Automation Scenario
§ Enhance, Extend and Optimize SAP Core Processes across the Value Chain for Achieving
Business Differentiation, Flexibility and Agility
Time to Market
Business Innovation +
Differentiation
Digital Process Automation for SAP
Adoption Level
Core
Process
Steps in
KPIs, SLAs
and Perf
threshold
Alerts
Exception
Steps
Value
Realization
Activities
Escalation
Paths
Sub-
transactional
Activities
Approval
Steps
§ Improve process agility – modify the process without
extensive IT development
§ Reduce cycle times and improve productivity
§ Simplify, Streamline processes & activities
§ Improve business control, compliance and auditability
§ Provide ‘exception’ visibility of non-transactional steps that
typically impede performance

13. © 2016 IBM Corporation13
Applying BPM to manage SAP / Packaged Apps
BPM Adds Value Above and Below the SAP Core Transactions
L1
L2
Group
L3 -
Process
L4 -
Activity
L5 – SAP Transactions
Process Levels - APQC Process Classification Framework
(Source: APQC – American Productivity and Quality Center)
BPM
SAP
L6 – Sub-Transaction and Exception Management BPM + SAP
Category Record Keeping
Data Integrity
Transaction Reporting
Data ReusabilityProductivity
(System of Record)
Flexibility
Visibility
Simplicity
Optimization
Automation
Mobile / Social
Agility
Consistency
ReusabilityCompliance SLA / KPI
Collaboration
(System of Engagement – digitizing ‘access’,
‘collaboration’, ‘process’, ‘decisions’)
Process Levels - APQC Process
Classification Framework (PCF)

14. © 2016 IBM Corporation14
DX Enabler 3: App Performance Management Scenario
§ Performance issues may not cause an outage, yet it can impact the users productivity and customer
satisfaction / revenue or oppty loss. Lack of Monitoring: by far the leading cause for outages of the SAP
Production environment.
Today’s Hybrid IT Landscape
Application Performance Management can help
Resolve issues
before your
business is
impacted
Identify
performance
issues beforehand
Isolate where the
problem is
occurring
1 2 3
End users
Devices
SAP
SCM / PLM
Backend
DB, DW, etc.
Cloud Workloads
On Premises Workloads
SAP ECC /
CRM
Reducing & Preventing Outages and Slowdowns for the 24/7 Hybrid Application World
SAP EP
Portal
SAP NW AS /
HANA
Legacy
Systems
Non-SAP
Applications
SAP
HCM

15. © 2016 IBM Corporation15
Infusing Cognitive into Warehouse Parts management process
Infusing Watson Cognitive services into Parts Receiving Process
Cognitive
services in
Public
Cloud
Natural
Language
Processing
Text
Analytics
Machine
Learning
Image/Video
Analytics
Conversation /
Virtual
Assistant
Speech to Text /
Text to Speech
Customer
Service
Mobile
Apps
Employee
Service / IT
Desk
Business
Application
Cognitive
Apps / Bots
Business
Application
On-Prem
Non-
SAP
On Cloud (PaaS)
On Cloud (IaaS)

16. © 2016 IBM Corporation16
Integration Pattern (Synch and Asynch): SoE to SoR / Cloud-to-On-Prem
PartnersCustomers
ERP / ECC
CONNECTXFORM DELIVER COMPOSE EXPOSE
IBM INTEGRATION BUS
IBM API
Connect
Web Portal can be an
On-Prem (or) deployed
in Public Cloud
APICall
APICall
DirectAPICall(REST)
HTTP(s)
HTTP(s)
Adapter
PI
JMS /
Web Services
BAPI
*
Web Portal
B2BIntegration
IBM
DataPower
IBM
DataPower
Cloud-native, SoE
Applications
Services
ECC & S/4
HANA
SaaS
Applications
IBM App
Connect
ConnectorConnector
BAPI/OData
Internet
Cloud-native
Applications and
Cognitive / Analytics
Services
Backend
DB, etc.
Non-SAP
Applications
Internet
Employees
Cloud (PaaS)
Cloud (PaaS)
Integration Pattern:
SaaS to SoR-SoE Interaction
Integration Pattern: Asynchronous
and API-based Synchronous (SoE-
to-SoR) Interaction

17. © 2016 IBM Corporation17
Hybrid Integration Architecture for SAP and non-SAP ERP
USER EDGE
SERVICES
API ServicesCLOUD-NATIVE
APPLICATION
SAP
APPLICATION
SAP
PROCESS
INTEGRATION (PI)
WEB PORTAL
(CLOUD-ENABLED)
SECURE
CONNECTIVITY
DATABASE
Partner
Application
3
2
11
5
7
6
12
8
ENTERPRISE
MESSAGING
CLOUD
MESSAGING
SAP
APPLICATION
DATABASE
Non-SAP
APPLICATION
ENTERPRISE
INTEGRATION
SERVICES
8
9
10
8
DATABASE
4
1
DEVOPSSECURITY
PUBLIC NETWORK CLOUD PROVIDER NETWORK ENTERPRISE NETWORK
Hybrid Integration – with SAP / Packaged Application – Enterprise Integration Services
Monitoring
and Logging

18. © 2016 IBM Corporation18
Further Reading
§ IBM Cloud Architecture Center https://www.ibm.com/cloud/garage/category/architectures
§ IBM Cloud AC, Hybrid Integration https://www.ibm.com/cloud/garage/content/architecture/hybridIntegration
§ An Architectural Guide to IBM Hybrid Integration Platform http://www.redbooks.ibm.com/Redbooks.nsf/RedbookAbstracts/sg248351.html
§ IBM Cloud Integration https://www.ibm.com/cloud/integration
§ IBM Application Integration Suite http://www-03.ibm.com/software/products/en/application-integration-suite
§ IBM Digital Process Automation https://www.ibm.com/cloud/digital-process-automation
§ IBM Application Performance Management https://www.ibm.com/cloud-computing/products/it-service-management/apm/
Logan’s Blogs
§ Infusing Cognitive in Parts Management in a Manufacturing Warehouse
https://vadlogan.wordpress.com/2017/07/10/infusing-cognitive-in-parts-management-in-a-manufacturing-plant-part1/
https://vadlogan.wordpress.com/2017/07/27/infusing-cognitive-in-parts-management-in-a-manufacturing-plant-part-2/
§ Improve business outcome by applying BPM to ERP system
https://www.linkedin.com/pulse/improve-business-outcome-applying-bpm-approach-erp-system-vadivelu/
§ Improve agility, flexibility and visibility of ERP system processes
https://www.linkedin.com/pulse/improve-agility-flexibility-visibility-erp-system-logan-vadivelu/

19. © 2016 IBM Corporation19
ThankYou!
Questions?

20. © 2016 IBM Corporation20
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