The document discusses SAP Enterprise Modeling Applications (ARIS) and how it can help with business process management strategies for SAP. It covers the business process management lifecycle from analysis and design to implementation and monitoring. Key points include how the tool can help design flexible processes, close the gap between business and IT, and accelerate implementation projects.

1. SAP Enterprise Modeling Applications (ARIS):
The first step in your BPM strategy for SAP
•Sarah White, SAP Quality and Risk Management
•Solution Engineer

2. Today’s Dynamic Business Environments
Demand a New Approach to Managing Business Processes
Business changes Businesses forming Closer Business and
more rapidly global networks IT alignment is imperative
Business & IT
Speed of change! Global Networks! alignment!
…requiring processes to span …requiring tools that foster the
…requiring processes that can across organizational and collaboration between LOB who
easily be adapted geographical boundaries defines processes and IT who
implements processes
Get There Faster.

3. CIO’s Prio 1: Business Process Improvement
According to 2010 Gartner Survey among 1,600 CIOs worldwide
# Business Priorities
1 Business process improvement
2 Reducing enterprise costs
3 Increasing the use of information/analytics
4 Improving enterprise workforce effectiveness
5 Attracting and retaining new customers
6 Managing change initiatives
7 Creating new products or services (innovation)
8 Targeting customers and markets more effectively
9 Consolidating business operations
10 Expanding current customer relationships
Source: Source: Gartner EXP (January 2010)
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4. Obstacles to Change Existing Business Applications
Agile processes need more functionality
Business Process Agility is becoming a standard requirement for IT and
“ business .” Gartner (G00138195)
Considering your existing enterprise app implementations,
how important are the following business problems?
(percent answering “important” or “very important”)
Inflexibility limits process changes 77 %
Lack of visibility into process results 77 %
Poor cross-functional processes 76 %
Business requirements vs. apps mismatch 76 %
Poor internal/external collaboration tools 65 %
Can’t extend processes to external partners 53 %
Poor industry-specific functionality 47 %
Source: Forrester Research, Inc. September 2007, Base: 75 Business and IT decision-makers
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5. What is Business Process Management?
Business Process Management (BPM)
Business Process Management (BPM) refers to the integrated and continuous analysis,
design, implementation, execution, measurement and monitoring of business processes in
order to increase effectiveness and efficiency with respect to the corporate strategy.
BPM also covers the process-related environment, such as organizational structures, people,
and technology. In particular it deals with cross-functional and inter-organizational business
activities.
Process Management Lifecycle (PML)
PML is SAP's BPM model. It covers the
whole lifecycle of a business process and
can therefore be used within process
projects. PML can also be used during the
execution and monitoring of existing
business processes.
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6. Why Customers Care?
It's a Matter of Survival: Use BPM Business expectations for IT focus on improving
to drive out costs current operations and performance
BPM gives companies visibility into
“ processes that are key to cost management.
BPM is a lifeline in this troubled economy. It
helps companies find and avoid hidden costs
— to keep companies in business.
Discover expenses that can be avoided
Bring visibility to hidden costs and take action
Reduce costs and errors associated with
compliance requirements
*Source: Gartner Executive Programs - Meeting the Challenge: The 2009 CIO Agenda
Source: Gartner, March 2009
Companies in a broad range of industries
are reporting measurable paybacks from
BPM
30-45% reduction in process operating costs
50-75% reduction in end-to-end process
completion time
60-90% reduction in time to change
business requirements
75-90% reduction in manual operations
errors
Source: Gartner Get There Faster.

7. The Value of BPM: The Link Between a Focus on Process
Excellence & Higher Market Valuations
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8. SAP Enterprise Business Process Management Life Cycle
Analyze: Design:
SAP Business Process
SAP Enterprise Modeling by IDS
Optimization by IDS Scheer
Scheer
Identify process weak points and
Analyze and optimize existing processes
bottlenecks
Design processes on a conceptual level
Determine utilization of resources
Achieve process governance and assign
Analyze KPIs to enable sound process ownership
justification of suggested process
improvements
Monitor:
Implement:
SAP Process Performance
Management by IDS Scheer SAP Enterprise Modeling by IDS
Measure performance of existing Scheer with integration to
processes Solution Manager
Visualize, document and analyze the Accelerate Implementation via pre-
actual performed processes prepared content
Increase visibility via full integration of all
Business Process and Enterprise
Run: Architecture components and
SAP NetWeaver BPM advanced reporting
SAP Enterprise Modeling
Integration with SAP ESR
Get There Faster.

9. SAP Enterprise Business Process Management
Life Cycle - Design
Design:
SAP Enterprise Modeling by IDS
Scheer
Analyze and optimize existing
processes
Design processes on a conceptual
level
Achieve process governance and
assign process ownership
Get There Faster.
29 June 2010 | ProcessWorld 2010 | 9

10. Business and IT Challenges
Head of Business
Department How can I make my processes understandable and how
do I visualize and communicate them in ONE common
language?
What potential saving does establishing best practices in
my processes bring about?
How can I improve adaptation of our IT to my business
processes?
Bridge the Gap
IT Manager
Where do synergies occur in the IT environment and how can
I avoid redundancies?
What action do I need to take in the event of a system failure?
>> Company-wide, distributed design of business processes and IT
architectures.
Get There Faster.

11. Enterprise Architecture Environment
Branch
Branch
Manager
Branch Branch
Front Office Back Office
Relationship Service Organization
Manager Specialist
Client Relationship
Relationship Bank
Account Manager Application
Data Client product Portfolio
Master requested
Client Data Account Account
Master Management Management
Data Application
Application
Account Open
Opening new
Client Form account Card
Retail Management
Name Application
Account
Lending
Client Application
Address
Account Account
for new for existing Saving
Product Application
Data
client opended client opened
Data
Process Application
Bank Products
& Services
Retail Retail Retail Retail Retail Product/
Lending Saving Cards Payment Account
service
Get There Faster.

12. Adapt SAP Enterprise Modeling to Your Needs...
... by creating your own model types and methods.
Core business process
Main business process
Business process
Process step
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13. Modeling and Analysis: Roles and Tools Involve the Business Users
SAP Enterprise Modeling by IDS Scheer
SAP Enterprise Modeling by IDS Scheer
Process Manager IT Architecture Manager
Business Architects IT Development Planner
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SAP Business Designer by IDS SAP Business Publisher by IDS
SAP Business Publisher by IDS
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ARIS
Worldwide process design Repository
Write
SAP Business Process Optimization by IDS Scheer
SAP Business Process Optimization by IDS Scheer
Person who
analyzes the
processes
Get There Faster.

14. SAP Enterprise Modeling Applications by IDS Scheer
SAP Enterprise Modeling Application Product Bundles
SAP Enterprise Modeling Application Product Bundles
SAP Business Designer by IDS Scheer
SAP Business Designer by IDS Scheer
SAP Enterprise Modeling by IDS Scheer
SAP Enterprise Modeling by IDS Scheer
SAP Business Process Optimizer by IDS Scheer
SAP Business Process Optimizer by IDS Scheer
SAP Business Publisher by IDS Scheer
SAP Business Publisher by IDS Scheer
SAP Process Performance Management by IDS
SAP Process Performance Management by IDS
Scheer
Scheer
Get There Faster.

15. SAP Enterprise Business Process Management
Life Cycle - Implementation
Implement:
SAP Enterprise Modeling by IDS
Scheer with integration to
Solution Manager
Accelerate Implementation via pre-
prepared content
Increase visibility via full integration
of all Business Process and Enterprise
Architecture components and
advanced reporting
Get There Faster.
29 June 2010 | ProcessWorld 2010 | 15

16. Implementation… Key Building Blocks
Utilizing SAP’s Business Process Close the IT / Business Gap
To accelerate your Implementation
Repository With Systematic alignment
SAP Solution Manager SAP Enterprise Modeling
Get There Faster.

17. SAP Solution Manager and SAP Enterprise Modeling
Synchronization: Structure
SAP Solution Manager SAP Enterprise Modeling
Synchronize
Project Scenario Process Process Step/Transaction
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18. SAP Solution Manager and SAP Enterprise Modeling
Synchronization: The Models
Event Driven Process Chain Value Added Chain Diagram (VACD)
(EPC)
Value Added Chain Diagram (VACD)
Functional Allocation Diagram (FAD)
Project Scenario Process Process Step/Transaction
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19. SAP Solution Manager and SAP Enterprise Modeling
Synchronization: Model Build Out Example
Original Built Out Example
Event Driven Process Chain (EPC)
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20. Documentation and Training embedded in
Business Process Architecture
Documentation Call
Transaction Call
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21. SAP Solution Manager and SAP Enterprise Modeling
Synchronization: Updating SAP Synchronized Objects
Original Updates Solution Manager Blueprint Structure and
Configuration
EPC with SAP object added in SAP EM
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22. Process Oriented Configuration from SAP Enterprise Modeling
to Solution Manager
Solution Manager
ERP - IMG
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23. SAP Enterprise Modeling Process and Project Accelerators
Process Oriented Configuration
TO-BE Processes
Blueprint
Documentation
Process Oriented Testing
Business Processes in
SAP Enterprise Modeling Process Oriented Training
Process Performance Monitoring
Use AS-IS Process
Redocumentation (Solution
Documentation Assistant, etc)
for Upgrade Preparation
Get There Faster.

24. SAP Enterprise Business Process Management
Life Cycle - Run
Run:
SAP NetWeaver BPM
SAP Enterprise Modeling
Integration with SAP ESR
Get There Faster.
29 June 2010 | ProcessWorld 2010 | 24

25. Enterprise Multilevel End to End Concept: Top-Down Approach
in SAP Enterprise Modeling
Supply
Process management
area
Level 1
Inventory
management
Main process
Level 2
Goods
receipt
Process
Level 3
Send
shipping
Process Step notification
Level 4
Automatic
email with PO
Transactions/Enterprise Services confirmation
Level 5
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26. Automating non-standard processes can be challenging
Because traditional applications are often too inflexible to change
Out-of-the-box software is well-suited to manage standard
processes
Best practices provided by standard software such as SAP Business Suite
applications, e.g.
Order processing
Sell tangible goods from stock
Procure to pay
…
But what if you want to automate non-standard processes?
To create innovative, differentiating, company-specific processes, e.g.
Specific approval processes
New product introduction
Negotiate new purchasing contracts with suppliers
Traditional applications are often too inflexible for fast-changing business
processes
Implementing new processes takes too much time and is too costly
Get There Faster.

27. Business Process Management covers both automated and manual
perspective
Business Process Modeling in SAP EM
Manual Activities
End to End process spans
Typically >80% manual and automated
activities
Automated Activities
Typically <20% Of the 20% of Automated
Activities
NW BPM
Typically <20%
Processes that deliver competitive
advantage and evolve regularly Differencing Activities
(SOA –Candidates)
Typically >80%
Standard Software
Standard Activities
Processes that should be as cost
effective as possible
Get There Faster.

28. Business Process Excellence with SAP
SAP Enterprise Modeling applications by IDS Scheer complement the
Business Process Management capabilities of SAP NetWeaver
Business to Model Model to Execution
SAP NetWeaver
SAP Enterprise Modeling
Business Process
applications
Management
SOA Design
Governance
Process Process
Process
Composer Desk
Desk
Process Server
Get There Faster.

29. Enterprise Modeling
From Conceptual Planning to Technical Blueprints
Conceptually describe the business Developing processes for
Support implementation and gap analysis execution
SAP Enterprise Modeling Applications
by IDS Scheer
Business Architecture Information
Value Chain Diagram Architecture
Organizational Structures
Enterprise
Event-driven Process Chain Architecture
Transactions Services
Synchronization
SAP
Solution Manager Provide Enterprise SOA
content >> Consolidated view on application core
for planning and gap analysis <<
Get There Faster.

30. Enabling SOA Service Discovery
Engineering & Architecture
SAP Enterprise Modeling by IDS Scheer Enterprise Services Repository 7.1
Annotations
of Business Models
With Enterprise
Services or
other ES Repository
modeling objects
S
RI
o rA
ef
lu s iv
c
Ex
Seamless Integration of Business Process Architecture
Seamless Integration of Business Process Architecture
based on ARIS ES Repository Integration
based on ARIS ES Repository Integration
Get There Faster.

31. Benefits of SAP Enterprise Modeling – Enterprise
Services Repository Integration
SAP Enterprise Modeling by IDS Scheer with Enterprise Services Repository
integration supports
Process-driven requirements analysis
Alignment of business process requirements and SOA
Link of business blueprints to service realization
Reuse of existing interfaces and services
Modeling and sharing of multiple planning scenarios in SAP Enterprise Modeling before implementation
Requirements analysis can define the need for new services
Get There Faster.

32. Business Process Modeling Notation 2.0
Improve Collaboration Between Business and IT
Business IT
Business-friendly Developer-friendly
process modeling perspective implementation perspective
(in SAP SAP Enterprise Modeling or NetWeaver BPM) (in SAP NetWeaver BPM)
Si n g
Procele
M od s s
el
From modeling (no coding!) … to execution (no translation!)
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33. Innovate New & Adapt Processes on Top of a Stable Core
Building composite processes on top of the SAP Business Suite
Process Innovation Value Proposition
Define a common business process layer
SAP BPM suite of choice for SAP customers
SAP NW SAP NW
Enterprise Extend the reach of BPM technology to enable
BPM BRM
Modeling completely new process scenarios
Composite Business Processes
Compose new business processes
Extend core business processes
Reuse service-enabled application core
processes (2,800+ ready-to-run services)
Enhancement
Packages
SOA-enabled Application Core Processes
Non-SAP
SAP Business Suite
All SAP applications on SAP NetWeaver
SAP NetWeaver Non-SAP applications integrated with
SAP NetWeaver
Process Excellence
*SAP NetWeaver Composition Environment is a model driven development environment for processes, views and business logic
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34. Sweet Spots for BPM
Based on Beta Program and Design Partner Council customers
Business
Composite Extended
Use Case Process
Applications Processes
Improvement
Build a new module Extend ERP Implement BPM as
or process not approval process part of business
Description available from SAP (e.g. procurement). process re-
using CE, BPM and Use BRM to engineering. NW &
BRM implement rules ARIS deployed to
(e.g. price support BPM
calculation) in ERP Lifecycle
Primary
Platform Applications Consulting
Driver
Beta
Reference
Detailed caseGet Therein wiki
studies Faster.

35. SAP Enterprise Business Process Management
Life Cycle - Monitor
Monitor:
SAP Process Performance
Management by IDS Scheer
Measure performance of existing
processes
Visualize, document and analyze the
actual performed processes
Get There Faster.
29 June 2010 | ProcessWorld 2010 | 35

36. Continuous Improvement of
Business Process Performance
Monitor
Business What Transparent end-to-end processes
Performance
Reveal cause & effect chains
Recognize optimization potential
Analyze
Business How
Persistent, automated Performance
monitoring of
performance indicators
Analyze Structures Why
Dimensional of Processes
Analysis of and of Organization Who
Process measures
Determine patterns
in processes and Establish
organizational structures Continuous
Improvement
Get There Faster.

37. SAP Enterprise Business Process Management
Life Cycle - Optimize
Optimize:
SAP Business Process
Optimization by IDS Scheer
Identify process weak points and
bottlenecks
Determine utilization of resources
Analyze KPIs to enable sound
justification of suggested process
improvements
Get There Faster.
29 June 2010 | ProcessWorld 2010 | 37

38. SAP Business Process Optimization
by IDS Scheer
Enhance SAP Enterprise Modeling for conceptual business process simulation
and optimization
Dynamically analyze business processes
Use simulated KPIs to evaluate a range of alternatives
Determine optimal procedures
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39. SAP Enterprise Business Process Management Life Cycle
Analyze: Design:
SAP Business Process
SAP Enterprise Modeling by IDS
Optimization by IDS Scheer
Scheer
Identify process weak points and
Analyze and optimize existing processes
bottlenecks
Design processes on a conceptual level
Determine utilization of resources
Achieve process governance and assign
Analyze KPIs to enable sound process ownership
justification of suggested process
improvements
Monitor:
Implement:
SAP Process Performance
Management by IDS Scheer SAP Enterprise Modeling by IDS
Measure performance of existing Scheer with integration to
processes Solution Manager
Visualize, document and analyze the Accelerate Implementation via pre-
actual performed processes prepared content
Increase visibility via full integration of all
Business Process and Enterprise
Run: Architecture components and
SAP NetWeaver BPM advanced reporting
SAP Enterprise Modeling
Integration with SAP ESR
Get There Faster.

40. Why SAP?
SAP Offers a Holistic BPM Approach
Comprehensive Solution Lower TCO
State of the art, standard based Leverage best practices delivered by SAP
composition tool (no coding, no Business Suite results in faster time to
translation) value
Flexible and open technology foundation Manage full process life cycle for
to effectively extend core business continous process improvement
processes
Lower risk Proven Value
Standardized process notation fosters Customers and partners are successfully
tighter alignment between business & IT extending process automation of core
business processes for fast evolving needs
Vibrant ecosystem of partners and
community Holistic BPM approach accelerates &
guides BPM adoption (methodology,
certification, technology)
Get There Faster.

41. Thank you!
Sarah White, Solution Engineer
SAP Quality and Risk Management