The document discusses using SAP BPM to streamline new product introduction processes. It describes challenges with current manual processes that involve coordination across multiple countries and entities. SAP BPM can help by modeling the new product process, automatically assigning tasks, integrating with SAP systems, and providing visibility and control over the end-to-end process. Key benefits of using SAP BPM include reduced cycle times, increased efficiency, improved data quality, and greater transparency.

1. Bring Velocity to Your "New Product Introductions" with SAP BPM

2. About the Presenter SOA-BPM Solution Architect Over 8 years of SAP solutions experience in PS, MM, EAM etc. Co-inventor of multiple patents in Enterprise SOA Worked on several BPM projects, including areas such as Claims Processing, Materials Mater Data and New Product Introduction Worked at SAP Labs in the past wherein was responsible for PIC Governance and Enterprise Services Repository Managed and Architected three large projects on Enterprise SOA Abhinava Pratap Singh SOA-BPM Solution Architect Incture Technologies Pvt. Ltd. [email_address]

3. About Incture Technologies Led by a strong team of ex-SAP employees with singular focus on SOA-BPM driven innovation for SAP customers. Largest BPM implementation partner in Asia – 5 major SAP NW BPM implementations in Asia Enabling BPM adoption by customers with series of BPM Workshops Thought leadership in SOA-BPM with large investments on solution and technology assets in SAP BPM Located close to SAP Labs and SAP Global Delivery Centre in Bangalore and has strong multi year collaboration (over 2000 man months) with SAP Development teams Combined advantage of deep skills and competitive cost (100+ delivery team is centred in Bangalore, IT hub of India) Member of SAP Design Partner Council – Advisor to SAP BPM, BRMS, CE, Java technology teams

4. Agenda

5. Industrial Context of NPDI Over 30.000 products introduced annually costing the industry over $60 billion a year , do not bring the expected outcome Average 15 months to launch a new product, and up to 80% of new products fail

6. Key Factors in NPDI

7. NPDI is Cross Functional NPDI is everything from conceptualizing ideas and concepts, to productizing approved concepts to commercializing the new products New Product Development & Introduction Mature Business Service Management Product Life Cycle Management Supply Chain Management Customer Relationship Management Supplier Relationship Management Life Cycle Applic. Use NPDI

8. NPDI Is a Complex Process NPDI is the process of managing all activities and resources to bring a new product to market that meets customer needs and supports the business goals. Marketing R&D Supply chain Manufacturing Marketing Designs Bills of material Customer needs Launch plans Opportunity Product External partners

9. Agenda

10. Corporate Profile Leading International firm that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products Operating companies and factories on every continent Over 163,000 employees in 100 countries Over 17,000* SAP users Challenges for the NPDI process Multiple research labs across continents Cross-country Supply Chains Complex Organization Structures Multi-vendor IT Landscape Around 800 users Case Study

11. The New Product in this case is a material (SKU) which comprises of the following Multiple Raw Materials to be sourced from multiple vendors Semi-finished Materials to be produced in-house at different plants Finished Product to be sold from multiple selling plants Packaging Material New Product

12. Co-ordinates across countries over email & phone Data entry with inadequate/vague inputs from marketing Non proficient data quality checks Product initiation runs to 3-4 weeks due to communication tossing back and forth with marketing Scenario based approvers identification is a challenge Non availablity of the approver results the entire process to halt Poor data quality Injects delay of a week or even more No escaltion mechanism to address delays Costing across countries and plants are prone to error Unsynchronized costing -- redoing costing results in a huge Cost overhead Multi-material products result in exponential cost overhead on redoing costing. confidential documents sent via e-mail -- Security risk Undocumented ,user-governed Business rules result in erroneous entries Lack of data enrichment results in plunging user efficiency Unclear accountabilty and missing SLAs induce a huge delay AS – IS – PROCESS Co-ordination across plants spread across various countries is a nightmare 3-6 months for a product completion largely due to cross border co-ordination challenges, lack of SLAs, automatic escalation and automation Countries named above are representative and not the actual names R&D team Shared Service Center SU Planner – TH SU Planner – SG SU Planner – ID SU Approval – TH SU Approval – SG SU Approval – ID Consolidation & Wait Purchasing – TH Purchasing – SG Purchasing - ID Sales Plant – TH Sales Plant – SG Sales Plant – ID Quality Mgmt – TH Quality Mgmt – SG Quality Mgmt – ID Finance– TH Finance– ID Finance – SG Warehouse – TH Warehouse – SG Warehouse – ID Sales Team – TH Sales Team– SG Review Update

13. Pain Points in NPDI Long Cycle Times NPDI takes around 3-6 months time creating a huge competitive disadvantage Poor Data Quality Overhead of a shared service centre to co-ordinate and run human eye based data quality checks Leading to 100+ material rejects every month Low visibility into the process leading to monitoring challenges Costing of materials across countries and departments lead to miscalculation Process document integration and Auditing capabilities missing Non-uniform process Different Countries follow different processes Email and telephone based co-ordination Inability to quickly adapt new business rules User having to work with monolithic MIRO SAP GUI screens and supplement them with excels, mails, calls

14. Streamline NPDI process Powered by SAP NetWeaver BPM Before Coordinating activities and capturing the information for a decision point (phase gate meeting) is mostly manual From … After Explicit process that tracks and manages decisions, task and deadlines for a decision point Project Manager Marketing R&D Finance Manufacturing To… Powered by SAP NetWeaver BPM Project Manager Marketing R&D Manufacturing Finance

15. Manage New Product Development (NPD) as a project Deal with various materials types in a consistent and coordinated way across the project Automatically assign tasks only when pre-requisite tasks are completed , thereby removing the need for individual to monitor that each pre-requisite task is completed Remove the co-ordination overhead of costing across countries and entities Assign tasks to the team or individuals that can action the item , thereby removing from the process delays associated with individuals managing task assignment Remove manual data collection Ensure that a material is available to procure, make or sell according to business requirements Objectives -1

16. Ensure that the access and authorizations are consistently applied across the ECC (ERP) and BPM platforms Impose an order on the process that conformed to the sequencing requirements of ERP material master creation Accommodate the country based diversities Provide the business with a uniform, consistent and generic view of material master creation that accommodates New product development requirements Costing orchestration - Plant level The variety of business scenarios Provide a basis for discussing and structuring the in country variability Objectives -2

17. Agenda

18. Process with SAP BPM

19. Process Flow Designed P r ocess Comprises of 5 phases Scoping – define the business requirements Material definition – turn the business requirement into a materials Costing – cost and transfer price the material Open Plant – make the material available for use in the plant Open Sales Org – make the material available to sell

20. Business Process Mapping Services UI Screens Business Rules BPMN Model Process Chart Process Flow Process Phases

21. Product Data Creation Project Initiation

22. Basic Data Flow

23. Plant Flow

24. FICO & Costing Flow

25. Warehouse Flow

26. Sales Org Flow

27. Business Rules for determining user/role to execute a process step

28. Business Rules for selecting the process variant

29. What was Achieved?

30. Why SAP NW BPM? Reference: http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/18701 (Darwin Deano, Deloitte Consulting)

31. Process Velocity. BPM tool based solution cuts down the process cycle times Efficiency . BPM tools excel at bulletproof automation of complex processes and can dramatically increase the efficiency and productivity of data management resources resulting in Process Optimization, Streamlining, increased Through put and Improved operating efficiency Repeatability . Top-notch data stewards know their data intimately and can quickly find and fix anomalies. But a downfall of manual data governance is that this person becomes unavailable or is lured to another company. BPM engines mitigate this risk and provide Improved operating consistency and quality. Auditability . The business activity monitoring component of BPM ensures that every step of every process is recorded and traceable to its original input at any time. Scalability . Increased automation and elimination of human touch points wherever suitable resulting in reduction of TCO and better scalability of business. Transparency . Because data governance processes are modeled in a BPM tool, it's easier to get sign-off from business owners. BPM makes business processes transparent, improving visibility and efficiency, ending the "trust me" risks of data governance. Process Operational Visibility & Transparency, Improved process performance measurement and reporting Change Agility & Operating flexibility for rapid and continuous change to deliver optimization Stronger User adoption and inclusion in process activities resulting in increased satisfaction in user, customer, partner, vendor and employees Main Advantages of BPM

32. Why BRMS? BRMS rules are primarily used for Tasking - Based on Country, Plant, Material Group, Key customer, MRP Type, Purchasing group, Product Hierarchy SLA Values - Based on the Workflow step and milestone Defaulting Rules - Based on the Country, Material Type, Screen name, Tab name Mandatory Rules -Based on the Country, Material Type, Screen name, Tab name UI Dependent Default rules - Based on country, screen name, tab name, attribute name MDM country team rules - Based on country, material type, P.H

33. Agenda

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