Enable process visbility: The Value Proposition for SAP customers

Shop Floor Automation and Solutions to
Enable Process Visibility and Improvement
The Value Proposition for SAP Customers

Joe Kaczmarek
Worldwide Sales Leader, IBM Business Process Management and
Operational Decision Management

Joe.kaczmarek@us.ibm.com

Session Themes

 Integrated application systems (ERP, CRM, MES, etc.) provide
core business support

 The attractiveness and pervasiveness of best practice process
adoption has raised the bar in achieving marketplace
differentiation

 The tension between standardized and differentiated
processes in the manufacturing context creates pivotal strategic
decision points

 IBM has developed approaches and solutions for achieving
process innovation and continuous improvement for
manufacturers in a packaged application environment

2
© 2012 IBM Corporation

Agenda

 Shop Floor Automation solutions
 Process challenges
 Packaged application challenges
 IBM BPM for SAP

3

Manufacturing Execution Systems (MES)
 The MES has become the translation center between
ERP and the real-time continuous data of plant
operations
 Controls vendors have developed MES offerings
– Invensys Operations Management (IOM)
– Rockwell
– Siemens
– Others…
 In recent years, ERP vendors have extended their
plant floor capabilities
– ERP vendors have touted the easy integration that their
MES provides
– Best-of-breed MES suppliers typically have greater
functionality
– SAP, Oracle and even Microsoft have enhanced their MES
offerings through R&D and acquisitions

4

Business Benefits of MES

 Capability areas:
– Automated data collection
– Material control
 Greater
– Product traceability efficiency, profitability, prod
– Quality control uctivity
– Production reporting  Respond to market
changes both quickly and
 Benefit categories: correctly and help adopt
– Data accuracy production processes – in
real-time.
– Reporting timeliness
– Manual reporting reduction

5

Key Strategic Decision Point – Single Vendor or Best of
Breed?

or

Reduced integration costs and Typically, better functionality
improved integration or functional alignment – but
more integration required

6 © 2012 IBM Corporation

Most MES Vendors Provide Some Technical Integration Capabilities

…But much technical work remains to connect the ERP environment
to the MES. An ESB is typically still required.

And Technical Integration is Only Half the Solution

Finance Executive
Process
and Ops Management Managers
Account
Administration
Risk Management
Teams

Business Integration Customer
Service

(Workflow
Management, Business
Monitoring, Process
Automation, Business
Rules, Complex Event
Processing)

Technical Integration
(ESBs, Adapters, Application
Integration, B2B)
Decision
Managers


Agenda

 IBM BPM for SAP

9

Typical Process Problems
Customer
Service Finance
Account
and Ops
Administration
• Incomplete or
Executive 6 inaccurate workflows
1 Management
3 • Lack of control
• Poor performance
visibility and insight
Invoice
Reconciliation • Inability to integrate
Teams
2 unstructured or ad
hoc tasks and
communications
(ex paper, email or
4 IM)

5

10

Process is a Priority to Clients
Make business process more efficient
56%
Introduce new IT-led products or services for our customers
Process is
40% Priority!
Get better business intelligence to more employees, faster
36%
Lower IT or business costs
36%
Improve Web operations or customer experience
34%
Improve customer service
26%
Engage customers in new ways
24% Process Improvement is the #1
Priority for CIOs - 5 years in a row
Gartner, Inc, “Leading in Times of
Transition: The 2010 CIO Agenda”
Data September 2010 Information Week 500 Survey

11

Agenda

 IBM BPM for SAP

12

Packaged ERP Applications Deliver Strong Business Value

 Improve alignment of strategies
and operations
 Improve productivity and insight
 Reduce costs through increased
flexibility
 Support changing industry
requirements
 Reduce risk
 Improve financial management and SAP customers excel by
corporate governance taking advantage of SAP’s
industry-specific
 Optimize IT spending
knowledge, best practices
 Gain higher ROI faster and standardized processes
 Retain top performers – all codified into the world’s
leading integrated
 Give employees new ways to application platform.
access the enterprise information
required for their daily activities.

13

But Still Far Short of Their Full Potential

What ERP/MES typically deliver
value today Where they fall short
Improve operational alignment Improve strategic alignment

Improve productivity Improve insight

Reduce costs Increase flexibility
Support changing industry
Support differentiated processes
requirements
Improve ROI Improve ROI faster
New ways to access enterprise Provide active real time business
information monitoring
Optimize IT spending Optimize business value

14

And Implementation Risks Remain…

METRIC AVERAGE

Took longer than expected 57%

Total implementation cost exceeds budget 54%

Failed to realize 50%+ of benefits 41%

Failed to realize some benefits 22%

Operational disruption at go-live 40%

Executives unsatisfied 32%

Employees unsatisfied 39%

Source: Panorama Consulting 2010 ERP Report

15

IBM BPM for SAP IBM Software Group | WebSphere software

Root Causes of SAP Implementation Issues
Most SAP
implementation
…much
documentation is
customization
static and does
is often
not reflect the
required
processes actually
being used

Most SAP
processes rely
on human …making it
compliance difficult to
with process migrate to
documentation future releases
…

s



A Typical SAP Process Today
A high level process blueprint is defined in
Powerpoint, Visio, SAP Solution Manager or
a modeling tool, including transactions:

VD03 - Display customer
master

VA01 - Create sales
order;

VOK0 - Maintain Pricing;

CK51N - Create Order
BOM Cost Estimate

IW21 - Create notification

The implementation then relies on users to
read, properly understand and comply with
documentation by entering the proper
sequence of transaction codes in SAP.



With This Approach, How Can You?....
 Quickly know the status of key
A high level process blueprint is defined in processes?
Powerpoint, Visio, SAP Solution Manager or
a modeling tool
 Ensure that the process you
master designed is the process that is being
VA01 - Create sales
executed?
order;

VOK0 - Maintain Pricing;  Get real-time visibility into where
workload or other bottlenecks are
BOM Cost Estimate
causing business issues?
 Effectively reroute work to less
experienced workers to reduce
The implementation then relies on users to
read, properly understand and comply with
bottlenecks?
documentation by entering the proper
sequence of transaction codes in SAP.  Know which process changes are
most likely to help improve business
performance?
Many SAP customers attempt  Quickly rollout SAP process
to address these issues with changes?
customization.  Quickly integrate new process
workers into your business?


Agenda

 IBM BPM for SAP

19


With IBM BPM 8.0

The picture IS your process…

Analyze. Define. Execute. Monitor. Improve.

All in one tool – analysis through execution
through improvement
s


BPM Brings Order to the Chaos
Finance Executive
Process 1.
1 Automate workflow &
and Ops Management Managers decision making
Account
Administration
Risk Management 2.
2 Reduce errors and
Customer
Teams
improve consistency
Service
3.
3 Standardize resolution
across geographies
4.
4 Leverage existing
systems and data
5
5. Monitor for business
events and initiate actions
6.
6 Real-time visibility and
process control

Customer Benefits:
• Huge Reduction in
Manual Work, Errors
• Faster, More Consistent
Issue Resolution
Decision • Easier to Manage the
Managers Business
• Consistent Case Handling

21

Two Methods Are Required to Optimize Business Processes

1. Packaged Applications 2. BPM Tools & SOA
 Improve 100‟s of processes at once  Adapt quickly
 Outpace the competition
 Sunset inflexible legacy systems
 Process visibility across core and
 Catch up to competitors other application systems
 Huge multi-year projects  Smaller, incremental projects

Natural
Tendency
Natural
Tendency
BPM
Process Optimization Process Optimization
Approach A Approach B

Non-Differentiating Differentiating
Business Processes Business Processes

Successful organizations will have a balanced
I/T Strategy of SOA/BPM and ERP Consolidation
22


IBM BPM V8 Integrates Seamlessly with SAP

SD
FI
Sales &
Financial
Distribution
Accounting

Orchestrate SAP MM
Materials CO
Services Mgmt. Controlling
AA
PP Asset
Production Accounting
Planning

SM
Service
SAP EC
Enterprise
Controlling
Mgmt.

QM
Applications PS
Project
Quality
Mgmt. System
PM
Plant WF
Maintenance Workflo
w
HR IS
Human Industry
Resources Solutions

Monitor SAP
Business Events

Download processes Upload processes to Retrieve Enterprise
from Solution Manager Solution Manager Service Definitions

s



Applying IBM BPM for SAP
Modeling for Use an iterative, experiential-based approach to
Documentation accelerate traditional SAP blueprinting

Mine SAP business events to discover actual
Real-Time Monitoring
processes and act in real time to business challenges
Increasing Integration

Interactively guide end users through SAP and E2E
Guided Workflow process steps to improve productivity, visibility and
consistency

Process Integration Optimize process steps to improve cycle
and Orchestration time, manageability and visibility of key processes

Inline Decision Automate complex decision making to reduce
Automation bottlenecks and improve business outcomes

Dramatically reduce the cycle time of high volume
Process Automation
processes by reducing/removing human interaction





Interactively guide end users through process steps
Guided Workflow
to improve productivity, visibility and consistency

Process Integration Optimize process steps to improve cycle time,
and Orchestration manageability and visibility of key processes


Process Automation



How Most SAP Customers Model Their Processes Today

 Most SAP customers use
general purpose
documentation tools such
as Office or Visio
 Some leverage Aris or
another documentation-
centric modeling tool
 These tools encourage:
– A documentation-centric
approach to process
management
– A waterfall approach filled
with risk and multiple delay
points
– Lengthy „analysis paralysis‟
SAP project activities



Traditional SAP Implementation Approach
Goal Setting and Scope
Management

SAP
Process Process
Library Analysis
 Most SAP implementations follow a typical
waterfall approach
– Goal setting SAP Process Blueprinting
– Analysis (Powerpoint, Visio, Excel, Aris)
– Design
– Test
SAP Solution Manager
– Deployment
 SAP maintains their process flows in
Solution Manager, which is used to
document, but not control, the business Configure Customize
process



But with IBM BPM, SAP Processes Can Be Played Back At
Any Time - Regardless of their definition maturity

 Start by importing SAP or IBM best
practice libraries
 Playback any process from the design
environment – regardless of the level of
detail and completion
 Include real screens, mockups or
images
 Clarify roles, process steps, flow, KPIs
and reporting

Playback  Even process skeletons can be
executed
– Process execution is logged
– All process performance parameters are
visible
– KPIs are calculated and displayed in real
time



Design SAP Processes Experientially
 Playbacks allow each
stakeholder to participate
DIRECTLY in the blueprinting
process
 The ability to see, feel and
touch the process as it‟s
executing:
– Delivers a richer, superior
design experience
– Allows a broader range of
participants
– Allows stakeholders to
participate as their schedule
permits
– Encourages an iterative
approach
– Decreases the time required
to blueprint a process


Playback-Based Iterative SAP Process Blueprinting
SAP Solution Design, build and refine processes for execution in
Model Processes a single integrated tool set. Optionally store
Manager
process definitions in SAP Solution Manager
Repository.
Invoke Screens Iteratively invoke or design screens as part of the
process definition exercise

Playback Process Playback modeled processes at any time to
directly see, feel and touch the real process

Monitor Results Empirically understand how the process can
meet KPIs and SLAs

Simulate and Simulate changes without changing the current
Refine model

Deploy! Promote the new or changed process into
production

Use ‘live’ process execution to design and test SAP business
processes, then implement your SAP process inside the same tool!




Guided Workflow



Process Automation



SAP Process Documentation Is Usually Outdated by Months or Years

2008 2012
SAP process Probably
blueprints created Outdated

SAP design Probably
completed Outdated
SAP configuration
Documentation
changes Additional SAP configuration changes
Possibly Outdated
completed
SAP
Documentation
customization Additional SAP customization
Possibly Outdated
completed
Ad hoc changes to processes by end Blueprint Not
users Updated

Without insight into the ‘real’ SAP processes being used in production,
it is very difficult to initiate and build an effective process innovation
program or to migrate to a newer SAP release.


IBM Business Monitor Provides Easy to Use SAP Process
Discovery and Insight
 View SAP transactions as
processes – without process
orchestration!
 Easily create „shadow process‟
views of SAP Business Events by
associating milestones with
changes in business state
 Completely non-intrusive to SAP –
simply turn on the SAP Business
Events needed
 Automatically create a process view
of any SAP Business Event(s) to:
All without disrupting – Understand the actual SAP
your SAP environment! processes being used in production
(and no custom coding) – Prepare for process innovation
– Detect business challenges as they
happen
– Fix issues before they become
problems


IBM Business Monitor - Powerful BAM and Real-Time Reporting for SAP
Understand up-to-
minute business
Identify trends, performance by
forecast events, monitoring KPIs
make smart
choices

Detect, respond
rapidly to
change

Continuously
improve key
Customize business processes
dashboards
easily

Rebalance human
workload on the fly
Leverage
mobile
devices

34




Guided Workflow



Process Automation



IBM BPM Can Deliver Guided Workflow for SAP
Yes
VOK0 -
Maintain
Pricing

VD03 - Display VA01 -
Select New pricing
customer Create
customer Required?
master sales order

No

SAP Process Flow CK51N - Create
IW21 - Create
in IBM BPM V8 Order BOM Cost
notification
Estimate

Transactions (Native SAP
Screens) Automatically
Invoked in SAP

Invoke the correct SAP transaction sequence for each process
instance, while gaining real time insight into business performance
issues and opportunities


IBM BPM Guided Workflow Improves SAP Value
 Documented processes become
orchestrated processes
 Improve SAP process:
– Visibility
– Manageability
– Reliability
– Consistency
– Auditability
– Performance
 Detect bottlenecks
 Reroute process instances with
capacity overload
 Escalate problem processes
 Initiate and track exception
processes
 Begin continuous process
improvement




Guided Workflow



Process Automation



Use IBM BPM V8 to Orchestrate SAP Externally

Adapter

Guided Workflow Process
Management for Orchestration
SAP BAPIs and/or Automation
Process with SAP Enterprise
Orchestration Services
and/or Automation
with BAPIs

Express, Standard or Advanced Only (BPEL) Advanced Only (BPEL)
Advanced (BPMN)


IBM BPM V8 Orchestrates Complex End-to-End Processes

End-to-End Process Choreography

1. Order is 3. Credit check 4. Customer order 5. Required 8. Customer
2. Customer
received and approval is written and components order is
records are
from the web are confirmed for and capacity produced, pic
updated with
site completed production are ked from
order request
determined, warehouse
information
ordered, allo and
6. Production order cated and scheduled for
9. Customer is completed and received shipping
order is warehoused
invoiced

7. Customer order
is approved for
shipment

IBM BPM 8.0 helps improve the business performance of both simple and complex
mission-critical processes.


BPM Enhances the Value of Your SAP Investment
SAP with IBM
Benefit SAP Only
BPM
Improve alignment of strategies and operations  
Improve productivity  
Improve insight  
Reduce costs through increased flexibility  
Support changing industry requirements  
Optimize IT spending  
Reduce risk  
Improve financial management and corporate governance  
Gain higher ROI faster  
Provide immediate access to enterprise information  
Give employees new ways to access enterprise
information
 



Use IBM BPM Throughout Your SAP Life Cycle
A New SAP
Implementation

SAP Process Innovation

End-to-End Process Integration

Functional Extensions

SAP Version
Migration
s

Most SAP Implementations Benefit from IBM BPM at every life
cycle stage


Small Sample of IBM BPM SAP Customers


IBM is the proven leader in all aspects of BPM

Largest Client Base Unparalleled expertise
• 5,000 + BPM Clients & level of investment
• Gartner ranks IBM #1 in • Over 15 years of industry
BPM with 24.7% share leadership
• IDC ranks IBM #1 with • 100’s of assets
34.2% market share • Broadest, Deepest
solution portfolio & services
Strongest Ecosystem
• 1000+ Business Partners
• Global Users group

Broadest and Most Differentiated Software Capabilities
• Simplicity for fast deployment and full business user participation
• Centralized governance for repeatability and consistency
• Visibility and Control to continuously improve business operations
• Power through High Scalability, Integrity & Quality of Service
• Market Leading process, case, decision and rules capabilities
• Best in class exceptions handling and case management
44

IBM and SAP Partnership - Qualified, Awarded, Proven
 Certified Global SAP Partner
– Global Service Partner
– Global Technology Partner
– Global Cloud Service Partner

 With a record total of 20 awards, IBM has been recognized
with an SAP Pinnacle Award every year since it's inception

SAP Award of 2005 2006 2007 2008 2009 2010
Excellence for IBM 2 awards for IBM 2 awards for IBM 3 awards for IBM 3 awards for IBM 4 awards for IBM 2 awards for IBM

 IBM itself is one of the largest productive SAP users
– 40,000+ SAP production users, mixed release levels, all on IBM hardware
– Improved bookings efficiency by 40%
– Increased labor productivity by 15%
– Reduced server build cycle times by 30%
45

IBM SAP International Competency Center (ISICC)

Provide technical pre-sales solution support for SAP applications and technology
with IBM hardware and software platforms.

 On-Site Resources  SAP Sizing Expertise
• IBM hardware and • Creation and ownership of
software brand experts worldwide sizing tools and
• Technology managers processes
• Solutions sales • Support the IBM Techline
• Project managers resources

 Technology  Technical Sales Support
• IBM and SAP projects • IBM Technical Sales
• Benchmarking/Sizing tests
• Business Partners
• Redbooks and whitepapers
• Tools
 Third level support when
• Executive briefings necessary

Founded by IBM and SAP in 1993, located at the SAP headquarters in Walldorf, Germany

46

Next Step – BPM Discovery Workshop
 A collaborative workshop between the IBM and you to:
– Determine which areas of business pain and/or opportunity are good fits for
BPM
– Identify and prioritize potential BPM pilot projects
– Select and scope a pilot project (90-120 days)
 What does the IBM team do?
– Clarify the process improvement pilot project scope
– Characterize the expected business impact and benefits
– Assess the high-level implementation effort and solution development
– Identify and assess potential risks
– Identify and rank additional projects beyond the pilot project
 How does it work?
– Delivered onsite through collaborative discovery sessions with process owners
and key stakeholders
– Pre-workshop preparation calls provide orientation and workshop planning
– Preparatory time is also spent gathering and reviewing existing customer
process documentation
 Typically 2-3 days, conducted free of charge
47

48

IBM Blueworks Live
Document and Run Processes in the Cloud

 Increase agility by documenting and refining
processes in a tool that keeps everyone informed
of important changes
 Make your organization more efficient by
automating simple processes that run today over
email - in as little as 90 seconds!
 Improve the way you work by seamlessly
collaborating across roles, teams and locations.
Sign up now for a free 30 day trial.
https://www.blueworkslive.com/signup/trial
 Escape your inbox by automating the 75% of
processes organizations currently execute as email
exchanges

Ensure your documentation keeps up with change while
maintaining oversight and governance over process improvement

49


IBM Uses IBM BPM Technology For Its SAP Implementation
Blue Harmony is IBM’s next significant step in transformation towards operating effectively as
a Globally Integrated Enterprise …

Blue Harmony incorporates
IBM BPM technology
Global Integration
Opportunity to Order
Order to Cash
Finance

.. focuses on enterprise process integration
 Integration and standardization across business units and across geographies
 A shift in culture from optimizing units to optimizing the enterprise
 Substantial improvement in ease of doing business for clients and Business Partners
 Radical transformation of process and IT environment simplifies enterprise controls

... implements a solution architecture that leverages the best of IBM
and SAP products – a showcase for IBM BPM capabilities.



IBM BPM Drives Faster and Better Blueprinting for
Your SAP Implementation
 „Live‟ playback during all phases of
process design and rollout

 Reduce blueprinting time and costs

 Deliver agile SAP business
processes that are easy to change

 Create market-differentiating SAP
processes

 Position your SAP implementation
for process orchestration and
continuous process improvement

Business users can directly
drive the SAP blueprinting
process.


Event-Based Business Monitoring Can Be Used to Uncover the
„Real‟ SAP Processes

VD03 - Display customer A list of detailed business
master events, describing what was
actually done by the user
VA01 - Create sales
order; • Customer displayed (VD03)
• Customer changed (VD04)
VOK0 - Maintain Pricing; • Sales order created (VA01)
• Sales order modified (VA02)
CK51N - Create Order • Pricing Maintained (V0K0)
BOM Cost Estimate
• Sales order modified (VA02)
• Notification previewed (IW22)
IW21 - Create notification Which could be
• Order BPM cost estimated analyzed by a data
created (CK51N)
+ analyst or process
• Sales order modified (VA02) specialist to
Ad hoc or added • Customer displayed (VD03) discovery real
process steps
process structures

SAP can create and publish the business events needed to discover
the actual business processes in production


But SAP‟s Business Monitoring Approach is Overly Complex

…And lots of custom coding is required to implement



SAP Solution Manager Stores SAP Process Definitions
But has no process execution capabilities
Approximately 40% of SAP customers use Solution Manager to store process definitions

Process definitions
only – cannot be
executed



Resulting in a High Amount of Costly SAP Customization
 Top reasons for SAP
customization:
– Streamline or customize the
SAP user interface
– Streamline or customize the
SAP process flow
– Add complementary functionality
– Integrate with non-SAP systems
 SAP provides tooling to
accomplish each, but not in the
same tool
 IBM BPM V8 provides all four
capabilities in a single tool,
driven by the process definition
 Reducing SAP customization
reduces cost and deployment
time, while minimizing risks to
future SAP updates



SAP Provides Services That Help Reduce Customization
public String search(){
try {
// Retrieve an instance of the configuration port
EmployeeBasicDataByEmployeeQueryResponseIn port = service
.getEmployeeBasicDataByEmployeeQueryResponse_InSoapBinding();
// specify username and password issued for you via SDN
// to authenticate to the backend as follows
javax.xml.ws.BindingProvider bp =
(javax.xml.ws.BindingProvider) port;
Map<String, Object> context = bp.getRequestContext();
context.put("javax.xml.ws.security.auth.username", "username");
context.put("javax.xml.ws.security.auth.password", "password");
// Construct the input to be applied to the service call
EmployeeID employeeID = new EmployeeID();
employeeID.setValue(this.employeeID);
EmployeeBasicDataSelectionByEmployee employeeByEmployee =
new EmployeeBasicDataSelectionByEmployee();
employeeByEmployee.setEmployeeID(employeeID);
EmployeeBasicDataByEmployeeQueryMessage input =
new EmployeeBasicDataByEmployeeQueryMessage();
input.setEmployeeBasicDataSelectionByEmployee(employeeByEmployee);
// Invoke the business methods
EmployeeBasicDataByEmployeeResponseMessage output = port
.employeeBasicDataByEmployeeQueryResponseIn(input);
Employee employee = output.getEmployee();
//Get the response
this.employeeName = employee.getCommon().getName().getGivenName();
this.employeeLastname =
employee.getCommon().getName().getFamilyName();
this.employeeBirthday = employee.getCommon().getBirthDate();
this.employeeMaritalStatus =
employee.getCommon().getMaritalStatusName().getValue();
return "ok";
} catch (Exception e) {
//Clean the object and return an error
this.employeeID = "";
this.employeeName = "";
this.employeeLastname = "";
this.employeeBirthday = null;
this.employeeMaritalStatus = "";
return "error";
}

s
…but no easy way to implement

IBM Federated Integration Architecture Strategy
Design for flexibility, agility, innovation and ROI

App-centric Integration IBM Federated Architecture
Every business strives to be
Total Cost unique, resulting in heavy Total Cost
process customization for
all but a very
SAP few, commodity processes
Customizations
Drive down
cost SAP
Customizations
Improve
responsiveness
to business
requirements
SAP SOA SAP
Achieve greater SOA
flexibility

Business Fit Business Fit
Flexibility Flexibility

Implement SAP in your company’s best interest, not SAP’s.

57

3 Life Cycles of Business Change Management
Application Changes
(Months, Years)

IT Release 1.0 Release 2.0

BPM Changes
(Weeks, Months)
Business Process
Owners Change in production

Subject Mater
Experts
Operational Decisions

Release 1.1 Release 1.2 Release 1.3 Release 2.0 Release 2.1

Business Decisions Updates
: Application up to date (Days, Weeks)




Guided Workflow



Process Automation





Guided Workflow

Process Integration Optimize process steps to improve cycle time,
and Orchestration manageability and visibility of key processes


Process Automation



The Value of IBM BPM for SAP

 Business performance  Variability
 Agility  Manageability
 Flexibility  Auditability
 Visibility  Consistency



Large US Toy Company Improves SAP Supply Chain Processes to Reduce
Costs

BPM Solution
Challenge:
 Increase responsiveness with customers and • Gathers the bill-of-lading information from
collaboration with suppliers while utilizing freight forwarders and corresponding invoice
data from SAP at the right time
previous investments in core enterprise
applications • Automatically prepares and routes all
documentation required
• Automates the reconciliation process
Benefits: required for all US Customs requirements,
 Increased productivity by 250 percent updating SAP at each milestone
without additional resources being put into
play
 Reduced cycle times by 80 percent, from
12 days to only two
 Improved overall business efficiency

IBM BPM reduced dependency on phone calls, e-mails and paper faxes, while
standardizing communication between employees and vendors with increased
process visibility


Examples of IBM‟s Own BPM Projects and Benefits in 2011

Mid-Market Deal Registration – Delivered $18.5M 2012 PTI by reducing deal
registration cycle time with rules-based work-flow automation.
Supply Chain Alerts – Over $2M annual savings for timely notifications when
supply chain disruptions occur.
Pricing estimator for Cross-brand solutions – Reduced pricing proposal
implementation from 14 days to 1 day and deployment to new countries in
Business Agility
days versus weeks.
Achieved
GTS Cloud Sales Enablement – Integrated work-flow, rules and monitoring to
reduce partner “register to welcome kit” cycle-time from days to hours.
GMU Geo Location Code Assignment - Geo location code is key enabler of
GMU expansion. Eliminated manual process and enabled GMU reps to update
rules directly and reduced cycle time to update and run rules from several weeks
with many handoffs to just a week for more than 50 countries.

MTS – Increased IBM Client satisfaction through proactive notification of
exposures in clients‟ IT inventory by applying rules derived via analytics. Proof of
value delivered.
Infrastructure Optimization – Reduced cycle time by 75% to complete the
analysis required to migrate from Physical servers to Virtual servers.



IBM Pricing Estimator for Cross-brand solutions
Problem
Takes up to 14 days to create proposals for IBM cross-brand solutions. Prices are hard coded, workflow is manual
and there is dependence on IT teams for business rule changes.
Solution
Scalable web based solution using IBM BPM products (ILOG JRules and WLE 7.2) to significantly reduce cycle time
for end-to-end price quotation and approval process for IBM cross brand solutions. Deployed smart analytics pricing
estimator to 10 countries and cloud estimator to 32 countries.
Note: The solution Release cycle was only 12 weeks.
Business Agility Improvements

Before Current State
End-to-end process cycle time to create an approved price Reduced process cycle time to create an approved price quote in 1
quote took 4 to 14 days day

Deployment to new countries took 4 weeks Deployment to new countries in 1 week

Dependence on IT resources to make changes to business Reduced dependency on IT resources. Business teams can
rules with 2 weeks turn around time change business rules in hours.

Manual price updates with rigid business rules and Automatic price updates with rapid business rules and
process implementation process changes with real time KPI monitoring.

Just-in-time sales promotions were not possible Just-in-time sales promotions are possible

Built on Microsoft technology with no auditability Built with IBM BPM and ODM technologies with auditability


 BACKUP

65


So That You Can….

Orchestrate agile SAP Instead of simply
s processes documenting rigid ones



How IBM Uses BPM – Some Examples
Project Name Modeling & Monitoring Process Execution & Rules and Pre- Content & Project Status
Simulation Optimization built Collab, Case
Frameworks Manager
GBS Services Project Blueworks Live BPM 7.5 I-Log J Rule Modelling in BWL prior to
PC/PD. Agreement to
On/Off Boarding U I I 4hrs/wk with Ricardo
Olivieri (Aug-Oct)

Smart Travel Blueworks Live WLE I-Log J Rule POC, Europe
U U U
Mid Market Small Blueworks Live BPM 7.5 Current focus on
process/policy
Deals Yield I I simplifications
Enablement follows

Dubuque GDC ITD Blueworks Live BPM 7.5 I-Log J Rule J.Brayer forming team to
initiate modelling of GDF
I I I portfolio.
Current focus is Simple
Project Set-up

Contract Blueworks Live In Measure/Analyze
Simplification -R
GTS Cloud IT Blueworks Live I-Log J Rule - U Phase 1 – process design
complete.
Enablement for -R
Growth Phase 2 - proposal in
progress.
(formerly called GTS BPM –
Cloud – Buy to Use) evaluation +
custom demo
1/12
Web based Pricing WLE i-log J Rule Solution deployed for U.S
and other countries Sales
(Smart Analytics) PR PR teams.

Total Risk i-Log J Rule In production- Aug 11
assesment-Supply PR
Chain alerts
Blue Harmony WBM 7.0 Working with BH process
owners to identify reports
R v/s real time monitor value


Your SAP Processes Deserve the Market Leader: IBM

The Forrester Wave: The Gartner Magic Quadrant:
"Comprehensive Integration Solutions" Wave “2010 Business Process Management Suites" MQ

WebSphere Process Server WebSphere Lombardi
drives IBM leadership in Edition drives IBM
Forrester Wave leadership in Gartner MQ

high performance simple to use
excellent integration fast time-to-value
superior integrity s
deep business engagement

ERP Vendors and MES

 SAP
– Acquired Lighthammer in 2005 to provide manufacturing intelligence and MES-like
functionality to its process manufacturing customers.
– Acquired Visiprise in 2008 to bolster its MES offering to discrete manufacturers.
 Oracle
– Oracle Manufacturing Execution System for Process Manufacturing as an add-on to its
Oracle Process Manufacturing System.
– Oracle Manufacturing Execution System for Discrete Manufacturing (MES for Discrete
 Even as ERP vendors are offering manufacturing support modules, they haven‟t
attempted to enter the control space.
 MES products from Oracle and SAP are getting very robust
 Third parties don‟t have all the interaction with the ERP that you get with Oracle
and SAP
 hop floor automation is the next frontier for manufacturing ERP software.

69


Modeling Solutions Like ARIS Only Help Deliver Documentation
Faster

 Better than Powerpoint, Visio or Excel
 Can be integrated with the SAP Solution Manager
process repository
 Models are optimized for analysis, not execution
 Virtually impossible to take an analysis model and use it
s
directly for execution


IBM BPM for SAP

IBM BPM Can Easily Exchange Models with SAP Solution
Manager

SAP Solution Manager IBM Process Designer
Business Process Hierarchy
Lev 0 Project Process Application
Lev 1 Business Scenario

SSI4BPM
Lev 2 Business Process Process
Lev 3 Process Step Activity, (Sub-)process,
Service
Implementation Content SAP Implementation Content
eg. Transactions, Docs

IBM BPM maps its process elements
directly to SAP Solution Manager
constructs and performs
bidirectional exchanges
s


Most SAP Implementations Have Issues Today

Late Deployments Over Budget Rigid Processes

Poor Operational
Visibility ROI Targets Not Met

s


IBM BPM – An innovative solution to a complex problem
Embrace complexity, adapt quickly and exceed expectations

Simplicity Power
Simple, easy-to-use modeling using
Industry standard BPEL orchestration
standard BPMN
Built-in ESB and integration adapters
Immediate “playback” for rapid
collaboration Transaction and Process Integrity support
Process rule engine uses ILOG WebSphere Application Server scalability
BAL language

Visibility Governance
Integrated Business Activity Single repository of all process assets
Monitoring
“Toolkits” for sharing assets
Real-time process scoreboards
Simple snapshot versioning (1-click)
“Heat maps” show bottlenecks in
process model Centralized deployment control center (1-click)


IBM BPM Overview
 BPM provides innovative tooling to capture, understand, document, collaborate, and
optimize ANY business process causing the most pain, or needing the most visibility
 BPM projects do not require disruptive multi-year investments
 Create process models that execute the process
 Easily provide business owners with real-time monitoring of any process that has been
implemented with the tooling

Finance
and Ops
Risk Management
Teams Account Executive
Management
PEOPLE Administration

Customer
Service

RULES

PROCESS

SYSTEMS

74


Workflow in the Traditional SAP Implementation
master

VA01 - Create sales
order;

VOK0 - Maintain Pricing;

BOM Cost Estimate


 Process designers create SAP documentation (paper, Word, HTML, etc.)
 Users are trained in how to use the SAP process documents
 Some users comply with the process as designed, others create their own
 Training time for new users is often lengthy
 Difficult to move users from task to task, even in the same department
 Little to no visibility of backlogs, bottlenecks, poor throughput and other
process issues

Enable process visbility: The Value Proposition for SAP customers

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