Logan Vadivelu Presented at IBM Business Connect event in Moscow, Russia in Oct 2013

2. Название презентации
Информация о докладчике
Logan Vadivelu
GMU BPM Technical Leader and SAP SME

3. Agenda
• The Process Imperative for SAP Implementation
– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process
Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP
customizations
• Demo – A Day in the Life of Order to Cash

4. Agenda
• The Process Imperative for SAP Implementation
– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process
Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP
customizations
• Demo – A Day in the Life of Order to Cash

5. Evolution of Business Drivers in the Packaged Applications Space
Reduce
Custom
Coding
and related costs
Flexibility
Application
Configuration
Improved
System-Level
Collaboration
SOA and Application
Integration
Active
Business
Performance
Optimization
Orchestration and
Inline Automated
Decision Making
1980’s 1990’s 2000 - present FORWARD!

6. SAP Process Optimization Gaps
• Understand how SAP
processes are
implemented today
• Use real-time
analytics to drive
immediate business
response to threats
and opportunities
FlexibilityVisibility
Agility Control
• Enhance and change
processes and
business policy at the
speed demanded by
the business
• Enable business-led
change
• Eliminate lengthy
process change cycles
• Match process
variants to specific
business
performance
requirements
• Reroute work and
tailor running
processes to reduce
bottlenecks
• Optimize business
outcomes based on
dynamic business
conditions
• Know the status of key processes?
• Get real-time visibility into bottlenecks?
• Effectively reroute work to less
experienced workers?
How can the
average SAP
customer:
• Know which process changes are most
likely to help?
• Quickly rollout process changes?
• Quickly integrate new process workers
into your business?

7. Agenda
• The Process Imperative for SAP Implementation
– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process
Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP
customizations
• Demo – A Day in the Life of Order to Cash

8. Where ERPs fit within Business Process Hierarchy
Understanding BPH is critical to effectively manage business processes
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
Category
IncreasingGranu
Vision / Strategy
Operation
Process
Process Hierarchy is a way of modeling large and complex processes through decomposition
into lower level processes and detailed steps to show information at different granular levels.
Process Levels - APQC Process Classification Framework
(American Productivity
and Quality Center)

9. Managing Processes for Better Business Benefits
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
SAP
L6 – Sub-Transaction and
Exception Management
Category
Flexibility
Visibility
BPM
Simplicity
Optimization
Integration Automation
Agility
Consistency
ReusabilityProductivity
Record Keeping (SoR)
Data Integrity
Exception Management
Reporting
Data ReusabilityProductivity
SLA / KPI
Business Process Hierarchy
(System of
Engagement)
(System of
Record)

10. BPH Process Level – 3 and Level – 4 in BPM and ERP
BPM enables Level – 3 process modeling, and orchestration, visibility for Level-4
Level 4
Process StepVerify
Customer &
Product Info
Verify
Customer &
Product Info
Credit Limit
Exceeded ?
Yes
No Create
Delivery
Create
Delivery
Manager
Approval
Manager
Approval
Credit
Approved ?
Yes
No
Pick & Pack
Goods
Pick & Pack
Goods
Post Goods
Issue
Post Goods
Issue
Enter
Order
Data
Enter
Order
Data
Auto
Release
Block ?
Yes Release
Credit
Block
Release
Credit
Block
Review
Credit
Increase
Review
Credit
Increase
No
Hold OrderHold Order
Invoice
Customer
Invoice
Customer
Post
Payment
Post
Payment
Level – 3 Process - - Order-to-Cash
Level – 3 Process - - Debit / Credit Memo
Authorize
Returns
Authorize
Returns
Submit
Returns
Request
Submit
Returns
Request
Exchange
or
Return
Return
Exchange
Create Returns with Free of
Charge Subsequent
Delivery
Create Returns with Free of
Charge Subsequent
Delivery
Create
Returns
Delivery
Create
Returns
Delivery
Post Goods
Receipt for
the Return
Post Goods
Receipt for
the Return
Create
Credit
Memo
Create
Credit
Memo
Require
Approval ?
Yes
Issue
Credit
Memo
Issue
Credit
Memo
Obtain
Approval
Obtain
Approval
No
Post Goods
Issue for the
Delivery
Post Goods
Issue for the
Delivery
Obtain
Customer
Confirmation
Obtain
Customer
Confirmation
Level 4
Process Step

11. Combining the ‘best of the both’ Worlds ….
• The premiere integrated business application
platform
• Robust and complete transactional capabilities
 The premiere BPM platform, providing a formal
and complete process management paradigm
 Simple process configuration and SAP
transaction tailoring
 Flexible, highly productive user interface
 The right amount of process differentiation,
driven by business need – not time and cost
Transactional Layer
Process Layer

12. Surround SAP With a Highly Flexible Process Layer
Transaction Orchestration
End to End Orchestration
Sub-Transaction
Orchestration + Visibility
Orchestrated Exception
Processes
Real-Time Monitoring and
Operational Insight
Orchestrated Value
Management Processes
Forensic Process
Discovery
Empirical Process
Characterization
Iterative Business
Blueprinting
IBM BPM for SAP introduces a radically superior process paradigm for SAP

13. BPM enables better Business – IT Alignment without costly,
unnecessary and complex SAP customization
• Evolvement of client’s requirement on enterprise supporting system
–Automation  Efficiency  Visibility  Agility…
• A balanced I/T strategy is required to optimize business supporting system.
Successful organizations will have a balanced
strategy of canned and differentiating processes
Process Optimization
Approach B
Process Optimization
Approach A
Differentiating
Business Processes
Non-Differentiating
Business Processes
BPM

14. Agenda
• The Process Imperative for SAP Implementation
– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process
Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP
customizations
• Demo – A Day in the Life of Order to Cash

15. Core IBM BPM for SAP Capabilities
Business Optimization Potential
Reduce blueprinting
time, cost and risk
Improve process
reliability, flexibility,
visibility and control
Improve process efficiency
and reduce business
complexity
Iterative
Business
Blueprinting
Process
Integration and
Orchestration
Process
Automation
Process
Discovery and
Monitoring
Decision
Automation
Guided
Workflow
Mine SAP
Business Events
to discover actual
processes and act
in real time to
business
challenges
Use an iterative,
experiential-based
approach to
accelerate
traditional SAP
blueprinting with
SAP Solution
Manager
Interactively guide
end users through
SAP screens to
improve productivity,
visibility and
consistency
Optimize process
steps to improve
cycle time,
manageability and
visibility of key
processes
Dramatically
reduce the cycle
time of high volume
processes by
reducing/removing
human interaction
Automate
complex
decision making
to reduce
bottlenecks and
improve
business
outcomes
Innovation Transformation
• Apply the right mix of process innovation capabilities based on:
– Process characteristics
– The level of optimization desired
– Current process innovation maturity

16. IBM BPM Integrates Seamlessly with SAP
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workflo
w
IS
Industry
Solutions
HR
Human
Resources
MM
Materials
Mgmt.
SD
Sales &
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant
Maintenance
SM
Service
Mgmt.
EC
Enterprise
Controlling
AA
Asset
Accounting
SAP
Applications
Upload processes to
Solution Manager
Download processes
from Solution Manager
Orchestrate SAP
Processes and
Services
Retrieve Enterprise
Service Definitions
Monitor SAP
Business Events
s

17. IBM BPM Enables Iterative SAP Process Blueprinting
Use ‘live’ process execution to design and test SAP business processes, then implement
your SAP process inside the same tool!
Model Processes
Playback Process
Invoke Screens
Monitor Results
Simulate and
Refine
Deploy!
SAP Solution
Manager
Design, build and refine processes for execution in a
single integrated tool set. Optionally store process
definitions in SAP Solution Manager Repository.
Iteratively invoke or design screens as part of the
process definition exercise
Playback modeled processes at any time to directly see,
feel and touch the real process
Empirically understand how the process can meet
KPIs and SLAs
Simulate changes without changing the current model.
Incorporate new process changes
Promote the new or changed process into production

18. IBM BPM for SAP – Level 3 Process
Guided Workflow – Automatically Sequence and Route SAP User Transactions
Create
Order
(VA01)
Create
Delivery
(VL01N)
Pick
Items
(VL02N)
Post
Goods
Issue
(VL02N)
Create
Invoice
(VF01)
Post
Customer
Payment
(F-28)
 Guide users to do right process step
at the right time always;
 Prioritize process tasks dynamically
to avoid ‘fire fighting’ and ‘chasing’
 Real-time visibility and intervene to
prioritize tasks
 Use process analytics to improve
processes
 Combine SAP and non-SAP process
steps to realize e2e process
orchestration
• Automatically sequence the correct SAP transactions for
the correct users at the right time, in the right execution
priority
• Easily detect and correct bottlenecks, stoppages and
other critical process issues
• Leverage process rules, rich process analytics for
performance improvement
• Leverage Collaborative capabilities to enable users work
together in real-time, reduce TAT (turn around time)
• Automatically allow end users to see all the relevant
details about a process definition and a specific process
instance

19. Guided Workflow for Exchange / Returns Process
IBM Confidential
19
Process Flow
in IBM BPM
Transactions
(Native SAP Screens)
Automatically Invoked in
SAP
Authorize
Returns
Authorize
Returns
Submit
Returns
Request
Submit
Returns
Request
Exchange
or
Refund?
Refund
Exchange
Create Returns with Free of
Charge Subsequent
Delivery
Create Returns with Free of
Charge Subsequent
Delivery
Create
Returns
Delivery
Create
Returns
Delivery
Post Goods
Receipt for
the Return
Post Goods
Receipt for
the Return
Create
Credit
Memo
Create
Credit
Memo
Require
Approval ?
Yes
Issue
Credit
Memo
Issue
Credit
Memo
Obtain
Approval
Obtain
Approval
No
Post Goods
Issue for the
Delivery
Post Goods
Issue for the
Delivery
Obtain
Customer
Confirmation
Obtain
Customer
Confirmation
BPM e-Form
BPM e-Form
VL01N
VL02N
VL02N
FB75 VF04
VA01 (SAP TCode) BPM e-Form
BPM StepBPM Step
Legend
Business RuleBusiness RuleSAP StepSAP Step
Level 3 Process
Level 4
Process Step

20. IBM BPM Guided Workflow Requires Limited IT Involvement
Launch a new process instance or
select from your inbound task list.
Complete your SAP transaction. Review the process
picture, see who has worked on previous process
steps, leverage previous process collaborations
1
23
Import the SAP Business
Process Hierarchy (BPH)
into IBM BPM
BPM UIBPM UI
SAP UISAP UI

21. IBM BPM Guided Workflow Enhances the User Experience
The SAP GUI is Automatically Surrounded by Rich Process Tools for Every End User
Standard or ‘Z’ SAP GUI
Process Status
(Diagram)
Process History
Process
Collaboration
History
Process
Experts
Community
Process
instance data
from
previously
steps can be
pre-loaded
into the SAP
screen
Process
Launch Bar
Launch any process
for which a user is
authorized
See a pictorial
process history and
downstream steps
See a detailed
stream showing all
process steps
completed thus far
See the complete
collaboration history
for the current
process step
Instantly contact an
identified expert in
the current process
step
IBM BPM Guided Workflow for SAP
automatically transforms any SAP GUI
into a rich process workspace, tightly
integrated into its process context.

22. Agenda
• The Process Imperative for SAP Implementation
– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process
Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP
customizations
• Demo – A Day in the Life of Order to Cash

23. How does IBM BPM enhance Traditional SAP?
Process Monitoring & Discovery - Visibility across processes in SAP & other applications
Blueprinting - integrated with SolMan, but using IBM agile BPM Playback Methodology
Guided Workflow – implementing business user screen flow w/o written code
Process Orchestration – deeper process management of transactions
Decision Management - Extending SAP Logic – using natural language, your vocabulary & simple logic
vs. code
Process Integration – across SAP and non SAP, multiple departments and manual steps
and exceptions (e.g. Order to Cash)
 Keep SAP clean – avoid bespoking e.g. for differentiating fit/gap, move
configuration complexity to the process layer
 Process automation and optimisation
 Agile business driven processes/rules
 Reduce IT TCO
 Productivity improvements
 Faster process cycle times and time to
market for process/rule changes

24. BPM Adoption – Best Practices
Start
Here
• Automate a manual process
• Provide visibility
• Faster cycle times
• Improve compliance
• Innovation
• Go to market
• Customer centricity
• Product flexibility
• Industry standards
• Economies of scale (factory
approach)
• Accelerate Time to value
• Prebuilt assets / reuse
• Standards (business + IT)
First Project
-Point solutions
-Early wins
First Project
-Point solutions
-Early wins
Program -
industrialisation
-Optimize projects
-Extend to new projects
Program -
industrialisation
-Optimize projects
-Extend to new projects
Transformation
-LoB, Enterprise focus
-Align strategy and
execution
-e.g. Globally integrated
enterprise
Transformation
-LoB, Enterprise focus
-Align strategy and
execution
-e.g. Globally integrated
enterprise
Adoption and Maturity
Note 1
Utility Co. uses SAP for billing
but can’t optimise
BPM enhances Refund Process
-62% Faster cycle time
20 FTE reduction
ROI after 14 months
 Business users directly manage the
changes to the business process
 Business users built and deployed 200
processes to production within 18 months
SAP Harmonisation
project to transform time to
market for new products
EU Utility

25. Use IBM BPM Throughout Your SAP Life Cycle
A New SAP
Implementation
SAP Version
Migration
Continuous SAP Process Optimization
End-to-end Process Integration
Functional Extensions and
Customizations
Any SAP Implementation can benefit from every IBM BPM capability at
every life cycle stage.
StableSAP
Implementation

26. IBM is the proven leader in all aspects of BPM
*Source: IBM Press Release; http://www-03.ibm.com/press/us/en/pressrelease/37376.wss
IBM was named the #1 vendor in BPMS software with a 27.1 percent share, almost triple that of
its closest competitor*
#1 in BPMS market share

27. Process Designer /
Optimizer
Integration
Designer
Process Center
Console
Process Center
Portal
Mobile App
Process Server
Core BPM Advanced Automation & Integration
BPMN BPEL AdaptorsProcess Rules
Performance
Data Warehouse
Integration
Social Collaboration
Coaches Dashboards
Network Multiple Process Centers
Server RegistryShared Assets
Versioned Assets
Express
Standard
Advanced
WAS ND 8.5
Mobile
Toolkit
IBM Business Process Manager V8.5

28. Questions
+ = Enables Innovative Business Model

29. Спасибо!