IBM BPM for SAP

David Keyes BPM Sales Executive, North America 20 February 2013

IBM BPM for SAP Enhancing the value of your SAP investment with BPM

© 2013 IBM Corporation

Governments face common challenges when improving processes
Processes reside inside applications Processes are rigid and costly to change IT changes needed lag far behind with passage of time, changes may no longer be relevant


Processes span multiple applications Any changes have implications across all applications inefficient and ineffective processes remain long after the need for change has been recognized


Undocumented manual processes No automation exists to enable on-the-fly process changes No automation exists to trigger processes based on events or patterns


Ad-hoc processes Most systems are not equipped to capture ad-hoc work Most ad-hoc processes often not tracked or monitored Costs remain hidden and ad-hoc processes remain ad-hoc

BPM Addresses These Challenges to Provide Integrated End-to-End Solutions © 2013 IBM Corporation

Process is a priority for Clients Make business process more efficient

56% Introduce new IT-led products or services for our customers

40% Get better business intelligence to more employees, faster

36%

Process is Priority!

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 © 2013 IBM Corporation

Typical process problems Customer Service

Account Administration

Finance and Ops

1.

Unstructured Tasks and Communication (ex Paper or email)

2.

Inefficient Working Environment Spans Systems

3.

Inconsistent Prioritization

4.

Incomplete or Inaccurate Data Flow Between Systems

5.

Lack of Control Over System and Business Events (Exceptions)

6.

Poor Visibility Into Process Performance

7.

Inconsistent or inefficient execution of business rules

6

Executive Management

1

3

Invoice Reconciliation Teams

2

4 5

SAP processes are typically ‘informal’, due to documentation-centric implementations. ABAP customization is often used to help manage and optimize SAP processes. © 2013 IBM Corporation

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
IBM BPM allows you to create process models that execute the process while capturing process metrics and key business data for improved visibility and control

Risk Management Teams

PEOPLE

The picture IS your SAP process…

Finance and Ops Account Administration

Executive Management

Customer Service

RULES

PROCESS

SYSTEMS © 2013 IBM Corporation

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

© 2013 IBM Corporation

In this presentation, you will learn how IBM BPM enhances your SAP investment Benefit 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

SAP Only

SAP with IBM BPM

 

 

 

 

 

 

 

 

 

 



 © 2013 IBM Corporation

Most SAP implementations have issues today

Late Deployments

Over Budget

Poor Operational Visibility

Rigid Processes

ROI Targets Not Met © 2013 IBM Corporation

SAP Process Management Challenges Most SAP implementation

documentation is static and does

…much customization is often required

not reflect the processes actually being used

Most SAP processes rely on human compliance

with process documentation… 9

…making it

difficult to migrate to future releases

© 2013 IBM Corporation

A simple SAP process today A high level process blueprint is defined in PowerPoint, Visio, SAP Solution Manager or a modeling tool, including transactions: VD03 VD03 -- Display Display customer customer master master VA01 VA01 -- Create Create sales sales order; order; VOK0 VOK0 -- Maintain Maintain Pricing; Pricing; CK51N -- Create Create Order Order BOM BOM Cost Cost Estimate Estimate CK51N IW21 IW21 -- Create Create notification 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. © 2013 IBM Corporation

With this approach, how can you?...
Quickly know the status of key processes?
Ensure that the process you designed is the process that is being executed?
Get real-time visibility into where workload or other bottlenecks are causing business issues?
Effectively reroute work to less experienced workers to reduce bottlenecks?
Know which process changes are most likely to help improve business performance?
Quickly rollout SAP process changes?
Quickly integrate new process workers into your business?

Many SAP customers attempt to address these issues with customization. © 2013 IBM Corporation

SAP provides services that should help 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 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"; }

…but no easy way to implement © 2013 IBM Corporation

IBM offers a comprehensive solution to common SAP process challenges Challenge

IBM Solution

Opaque SAP processes make process analysis and improvement difficult

Iterative, playback-based modeling facilitates transparent process definition

Rigid SAP processes increase time to value

Directly execute SAP process models for flexible processes and rapid process change cycles

End-to-end processes are difficult to model, simulate and manage

Easily orchestrate heterogeneous processes for simple end-to-end control

SAP Enterprise Services are difficult to use and incomplete

Easily consume and deploy SAP Enterprise Services at the business level

Limited SAP process and real-time visibility causes risk to KPIs and SLAs

Actively monitor and manage SAP and heterogeneous processes in real time

Low utilization of inline operational decision management limits productivity

Improve process throughput, consistency and responsiveness with active inline decision management © 2013 IBM Corporation

With IBM BPM 8.0

The picture IS your SAP process…

Analyze.

Define.

Execute.

Monitor.

Improve.

All in one tool – analysis through execution through improvement 14

© 2013 IBM Corporation

IBM BPM for SAP capabilities Increasing Integration

Process Discovery and Monitoring

Mine SAP business events to discover actual processes and act in real time to business challenges

Process Blueprinting

Use an iterative, experiential-based approach to accelerate traditional SAP blueprinting

Guided Workflow

Interactively guide end users through SAP screens to improve productivity, visibility and consistency

Process Integration and Orchestration

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

Decision Automation

Automate complex decision making to reduce bottlenecks and improve business outcomes

Process Automation

Dramatically reduce the cycle time of high volume processes by reducing/removing human interaction © 2013 IBM Corporation

IBM BPM 8.0 integrates seamlessly with SAP SD Sales & Distribution

Orchestrate SAP Services

MM Materials Mgmt.

CO Controlling AA Asset Accounting

PP Production Planning SM Service Mgmt. QM Quality Mgmt.

SAP Applications PM Plant Maintenance

Monitor SAP Business Events Download processes from Solution Manager

Upload processes to Solution Manager

FI Financial Accounting

HR Human Resources

EC Enterprise Controlling PS Project System

WF Workflo w IS Industry Solutions

Retrieve Enterprise Service Definitions

© 2013 IBM Corporation

IBM Business Monitor for SAP Process Discovery


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: •

Understand the actual SAP processes being used in production

•

Prepare for process innovation

•

Detect business challenges as they happen

•

Fix issues before they become problems

All without disrupting your SAP environment! (and no custom coding) © 2013 IBM Corporation

Playback-based iterative SAP process blueprinting SAP Solution Manager

Model Processes

Design, build and refine processes for execution in a single integrated tool set. Optionally store 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 Refine

Simulate changes without changing the current 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! © 2013 IBM Corporation

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

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Business users can directly drive the SAP blueprinting process. © 2013 IBM Corporation

IBM BPM can deliver guided workflow for SAP Yes

Select Select customer customer

VD03 VD03 -Display Display customer customer master master

VA01 VA01 -Create Create sales sales order order

VOK0 VOK0 -Maintain Maintain Pricing Pricing

New pricing Required? No

SAP Process Flow in IBM BPM V8

CK51N CK51N -Create Create Order Order BOM BOM Cost Cost Estimate Estimate

IW21 IW21 -Create Create notification notification

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 © 2013 IBM Corporation

Workflow in the Traditional SAP Implementation VD03 VD03 -- Display Display customer customer master master VA01 VA01 -- Create Create sales sales order; order; VOK0 VOK0 -- Maintain Maintain Pricing; Pricing; CK51N CK51N -- Create Create Order Order BOM BOM Cost Cost Estimate Estimate


Process designers create SAP documentation (paper, Word, HTML, etc.)

IW21 IW21 -- Create Create notification notification


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
21 Little to no visibility of backlogs, bottlenecks, poor throughput and other process issues

© 2013 IBM Corporation

IBM BPM Guided Workflow Improves SAP Value
Documented processes become orchestrated processes
Improve SAP process: • • • • • •

Visibility Manageability Reliability Consistency Auditability Performance


Business blueprinting
Training
Production execution


Detect bottlenecks
Reroute process instances with capacity overload
Escalate problem processes
Initiate and track exception processes
Begin continuous process improvement

22

© 2013 IBM Corporation

Use IBM BPM 8.0 to orchestrate SAP

BAPIs

Guided Workflow Management for SAP Express, Standard or Advanced (BPMN) 23

Process Orchestration and/or Automation with BAPIs Advanced Only (BPEL)

Process Orchestration and/or Automation with SAP Enterprise Services Advanced Only (BPEL) © 2013 IBM Corporation

Easily Encapsulate and Bind SAP Enterprise Services Create Sales Order (synchronous inbound service operation (A2X)) Create Sales Order …

IBM BPM simplifies usage of SAP Enterprise Services so that they can easily be used by process designers with knowing the complex technical details of the SAP service itself. 24

Create Sales Order IBM BPM SAP Integration Module


Encapsulated with SCA
Bound per technical environment standards
Ready for drag and drop into the Process Designer © 2013 IBM Corporation

Drag and Drop SAP Enterprise Services Into the Process Model

Create Sales Order

Create Sales Order

IBM BPM SAP Integration Module

IBM BPM SAP Integration Module


Allows process designers with no technical knowledge of SAP Enterprise Services to use them in process diagrams
Simplifies all process interactions with the SAP environment
Streamlines process design
Eliminates complex coding for SAP interfaces

25

© 2013 IBM Corporation

Simplify Complex SAP Transaction Flows with Simpler User Interactions and Process Flexibility Replace….

…..With

Select Customer IBM BPM SAP Integration Module

Retrieve Customer Master Data IBM BPM SAP Integration Module

Single Optimized Order Entry Screen
Replace complex flows of multiple SAP transactions with highly efficient single screens
Simplify work content
Reduce process cycle times and errors
Improve business performance 26

Create Sales Order IBM BPM SAP Integration Module

Create Order BOM Cost Estimate IBM BPM SAP Integration Module

Create Notification IBM BPM SAP Integration Module © 2013 IBM Corporation

Orchestrate and automate complex E2E processes

End-to-End Process Choreography 1. Order is received 2. Customer records from the web site are updated with order request information 9. Customer order is invoiced

3. Credit check and approval are completed

4. Customer order is written and confirmed for production 6. Production order is completed and warehoused 7. Customer order is approved for shipment

5. Required components are determined, ordered, allocated and received

8. Customer order is picked from warehouse and scheduled for shipping

IBM BPM Order to Ship End-To-End Process

27

Retrieve Customer Master Data

Create Sales Order

Create Order BOM Cost Estimate

IBM BPM SAP Integration Module

IBM BPM SAP Integration Module

IBM BPM SAP Integration Module

Create Notification IBM BPM SAP Integration Module

© 2013 IBM Corporation

Value Summary of IBM BPM for SAP
Business Performance


Quickly:
Know the flow and status of key processes


Agility

• Rollout SAP process changes


Flexibility

• Integrate new process workers into your business
Ensure that the process you designed is the process that is being executed
Detect and resolve bottlenecks


Variability

• Effectively reroute work to less experienced workers to reduce bottlenecks


Manageability

• Automatically escalate problem process instances


Audit ability

• Modify queued and running processes on the fly to respond to changing business


Consistency

conditions


Apply the correct amount of process integration and automation
Know which process changes are most likely to help improve business 28


Visibility

performance

Improve the quality, visibility and agility of your SAP processes in order to deliver an exceptional customer experience, reduce costs and optimize business performance. © 2013 IBM Corporation

Examples of IBM’s own BPM projects and benefits

Business Agility Achieved

29



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 days versus weeks.



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.

© 2013 IBM Corporation

Small sample of IBM BPM SAP customers

30

© 2013 IBM Corporation

Large US Toy Company Improves SAP Supply Chain Processes to Reduce Costs Challenge:
Increase responsiveness with customers and collaboration with suppliers while utilizing previous investments in core enterprise applications

Benefits:
Increased productivity by 250 percent without additional resources being put into play

BPM Solution Gathers the bill-of-lading information from freight forwarders and corresponding invoice data from SAP at the right time • Automatically prepares and routes all documentation required • Automates the reconciliation process required for all US Customs requirements, updating SAP at each milestone


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 31

© 2013 IBM Corporation

IBM BPM for SAP One Continuous Process, One Integrated Tool Set

The picture IS the process…

Analyze. Define. Execute. Monitor. Improve. 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

Unparalleled Expertise and Investment
Over 15 years of industry leadership
100’s of assets
Broadest, Deepest solution portfolio & services 32

Largest Client Base
5,000 + BPM Clients
Gartner ranks IBM #1 in BPM with 24.7% share
IDC ranks IBM #1 with 34.2% market share

Strongest Ecosystem
1000+ Business Partners
Global Users group © 2013 IBM Corporation

Proposed Next Step – BPM Discovery Workshop
A collaborative workshop 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), assess the fit and value of BPM and/or Decision Management capabilities for this project


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 business and technology stakeholders • Pre-workshop preparation calls provide orientation on the workshop approach and potential process improvement opportunities as well as set the workshop agenda • Preparatory time is also spent gathering and reviewing existing customer process documentation


Typically 2-3 days, conducted free of charge

© 2013 IBM Corporation

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© 2013 IBM Corporation